Sealine sold to US investors
- Thread starter Jack Haines
- Start date
[2068]
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I always thought Sealine was a bit of an oddball in the Brunswick lineup, but as usual, the devil is in the detail. There isn't much "group synergy" with the other brands that Oxford have bought in the past ("Automotive Metal Formed Systems Provider", "Community Banks"), but does that matter?
Sounds like the CEO fancied the idea of getting more into boats.
Sounds like the CEO fancied the idea of getting more into boats.
jfm
Well-Known Member
Nope. The plan with an investment like this is rarely to find synergies, not least because they don't attract a multiple generally on the eventual sale and anyway the equity ownership of Sealine is different from that of the other businesses
All sounds nice news for Sealine and their employees/custiomers/suppliers
rafiki_
Well-Known Member
Is this good news?
Upside, no longer part of a US boating conglomerate, therefore when money is tight, the US end will be first in the queue.
Downside, no longer part of a US boating conglomerate, but part of an investment company whose strategy for Sealine is....?
Upside, no longer part of a US boating conglomerate, therefore when money is tight, the US end will be first in the queue.
Downside, no longer part of a US boating conglomerate, but part of an investment company whose strategy for Sealine is....?
jfm
Well-Known Member
Starategy is to create value and make money. You rarely do that by running a business down. Far more likely they will support and grow the business, and only cut off things (business lines, models, people) that need to be cut off. Sealine has gone from being owned by a conglomerate that doesn't want to own it to being owned by a bunch of smart people who do want to own it. Good news
D
Deleted User YDKXO
Guest
I wonder too. IMHO, you can't say one way or another until Oxford's strategy for Sealine becomes apparent. They may be planning to invest for the long term in which case it could be good news or they may just think they have bought an undervalued asset which can be sold on to another boat builder for a profit as soon as the market looks up, which could be not so good news. Only time will tell
benjenbav
Well-Known Member
I like the idea of putting the Guernsey lobster boats into the Sealine line up.
rafiki_
Well-Known Member
John, I hope you are right. I think Sealine has done an excellent job of updating its line-up, and made some sensible decisions when the downturn hit a couple of years ago. They appear to be strengthening as a brand and should be a solid business for the future. Product development required serious investment, and I hope the new shareholder continues to do so, in order to reap the rewards.
pappaecho
Well-Known Member
The strategy for most companies of their type is to trim costs, raise the price per unit, sell off anything which makes money, like say freeholds, and then lease back etc.
Then flog the company to a mug punter for as much as you can get
Then flog the company to a mug punter for as much as you can get
rwoofer
Well-Known Member
Smart with numbers maybe. I'll reserve judgement on the rest....
MapisM
Well-Known Member
Do you know that first hand J?
It seems to me that what Oxford did - or better said, tried to do - with Fountain Powerboats wasn't that smart...
Third mate
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On past experience, shades of Southern cross ??
[2068]
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It's not really a comparable situation, as Fountain had already filed for bankruptcy protection before Oxford got involved.
Some more detail on what happened:
http://www.boattest.com/resources/view_News.aspx?NewsID=4020
And here:
http://www.tradeonlytoday.com/home/500939-differing-parties-comment-on-fountains-future
Quote from the above article on James Bursey, who unless there is a massive naming coincidence, will be the new MD:
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Fountain said James Bursey, the consultant sent by FB to his company, caused huge problems. Bursey told the security guards not to let anyone on the property unless he said it was OK, he threatened employees with their jobs and he put his own locks on doors, among other things, Fountain contends.
"He did about 24 or 25 things that you should never be able to do that are in direct violation of lender's liability," Fountain said. "He broke every rule in the book. They haven't invented a rule that guy didn't break."
Also, Fountain said, Bursey had little experience in boatbuilding yet talked about coming in and changing processes that have long been in place.
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With regard to being a marine industry veteran, his public profile shows him as having been Executive VP and COO of Neptunus during 2001/2002. Amongst other involvements are listed "turn-around and downsizing management".
Oh Dear.
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MapisM
Well-Known Member
Agreed, but since we drifted slightly o/t discussing the "smartness" of those guys, any sort of business management situation is valid, I suppose. I mentioned Fountain only because I followed that case a bit.
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Deleted User YDKXO
Guest
I don't know how smart it is to buy a company like Sealine which has a less recognised brand, operating in the toughest part of a market which is going to be depressed for many years. Not only that but when/if Sterling strengthens, that will make it even more difficult for them and other British boatbuilders. Frankly I don't understand the logic in straight business terms but I guess Oxford have a strategy otherwise they wouldn't have bought the company.
I note that Fairline have made another 75 employees redundant recently which gives an idea of how bad the market is
aviator
Well-Known Member
At least this is a US investment group which normally means looking at the longer term, unlike poor old Fairline who got lumbered with 3i with the results we see where now RBS of all people now hold a major stake.
I agree with the poster that in the Brunswick lineup Sealine looked a bit odd but they invested in new boats and seem to be having success.
Whether the market is going to be in big boats remains to be seen. I have my doubts and think that the Sealine range is about right.
When a boat costs the same as an house then most people stop and think. Yes there are the people who splash out on the big boats but this is a very aggressive market. Look at the Sunseeker situation where again the bank took over, that anyway is how it looked in the press at the time.
Good luck to Oxford and Sealine!!
I agree with the poster that in the Brunswick lineup Sealine looked a bit odd but they invested in new boats and seem to be having success.
Whether the market is going to be in big boats remains to be seen. I have my doubts and think that the Sealine range is about right.
When a boat costs the same as an house then most people stop and think. Yes there are the people who splash out on the big boats but this is a very aggressive market. Look at the Sunseeker situation where again the bank took over, that anyway is how it looked in the press at the time.
Good luck to Oxford and Sealine!!
Wiggo
Well-Known Member
Seems Ancasta have already decided to part company with Sealine:
"RE: SEALINE AND ANCASTA
I write to you in the wake of the news that Sealine International has been sold by Brunswick Corporation to a group of US Investors on 31st August 2011.
Following this transfer the direction of Sealine International has changed and Ancasta are no longer Sealine dealers for the South Coast of England."
"RE: SEALINE AND ANCASTA
I write to you in the wake of the news that Sealine International has been sold by Brunswick Corporation to a group of US Investors on 31st August 2011.
Following this transfer the direction of Sealine International has changed and Ancasta are no longer Sealine dealers for the South Coast of England."
z1ppy
Well-Known Member
Got that through as well today. Shame for the guys at sealine south coast. Our dealings with them were very good!
[2068]
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>Change of direction?
>Such that their largest dealer immediately terminates their relationship?
>Looks like Mr Bursey's opening speech might have failed to take into account the fact that dealers do have a choice.
Edited: Wrong way around. But this is going back to the mixed factory sales and dealership model that didn't work too well in the past. Having a flash showroom to present the boats in sounds good, but expensive, as there will be several millions pounds worth of boats sitting there going nowhere. Isn't that what Boat Shows are for?
>Such that their largest dealer immediately terminates their relationship?
>Looks like Mr Bursey's opening speech might have failed to take into account the fact that dealers do have a choice.
Edited: Wrong way around. But this is going back to the mixed factory sales and dealership model that didn't work too well in the past. Having a flash showroom to present the boats in sounds good, but expensive, as there will be several millions pounds worth of boats sitting there going nowhere. Isn't that what Boat Shows are for?
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LukcyOne
Active Member
And further news just released:-
Sealine to sell direct on the south coast
Sealine is to sell directly on the south coast following its recent purchase and the expiry of its dealership contract with Ancasta
Following the announcement on Wednesday that Sealine has been sold to a US investment company, the boatbuilder has announced that it will be returning to the south coast with a direct retail operation that will provide a complete range of sales and after-sales services for both new and existing Sealine customers.
In what could be seen as the first sign of investment by the new owners, Oxford Investment Group Inc, the factory-owned operation will initially be located at Saxon Wharf in Southampton, before moving into a "state-of-the-art" showroom that will house the complete range of Sealine models from 35 to 60 foot.
The Sealine South Coast brand will be retained by Sealine International following the expiry of the existing dealership contract between Sealine and Ancasta on 31 August.
Roger Wakefield, who has held the position as head of after sales at Sealine’s headquarters in Kidderminster, will be taking up the post of general manger of Sealine South Coast.
Speaking about the move, James Bursey, Sealine’s incoming managing director, said, “We are delighted to be returning to the south coast and will be looking to offer our customers a first-class range of services in one of the UK’s key boating locations.”
Sealine to sell direct on the south coast
Sealine is to sell directly on the south coast following its recent purchase and the expiry of its dealership contract with Ancasta
Following the announcement on Wednesday that Sealine has been sold to a US investment company, the boatbuilder has announced that it will be returning to the south coast with a direct retail operation that will provide a complete range of sales and after-sales services for both new and existing Sealine customers.
In what could be seen as the first sign of investment by the new owners, Oxford Investment Group Inc, the factory-owned operation will initially be located at Saxon Wharf in Southampton, before moving into a "state-of-the-art" showroom that will house the complete range of Sealine models from 35 to 60 foot.
The Sealine South Coast brand will be retained by Sealine International following the expiry of the existing dealership contract between Sealine and Ancasta on 31 August.
Roger Wakefield, who has held the position as head of after sales at Sealine’s headquarters in Kidderminster, will be taking up the post of general manger of Sealine South Coast.
Speaking about the move, James Bursey, Sealine’s incoming managing director, said, “We are delighted to be returning to the south coast and will be looking to offer our customers a first-class range of services in one of the UK’s key boating locations.”
