so Bavaria are to be sold

[Cutter]

German boatbuilder Bavaria has been bought out by private equity firm Bain Capital. The acquisition is expected to formally go through on 31 July.

Bavaria builds around 3500 boats a year at its yard in Giebelstadt, Germany, and recorded sales of over £180m in the 2005/2006 fiscal year.

In a statement, Bain Capital said: "In addition to a further strengthening of the Giebelstadt location, it is planned to expand the international dealer network and to open up new attractive markets abroad."

This isn't the first acquisition in the marine market for Bain capital, according to industry publication International Boat Industry. The firm already holds an investment in Bombardier Recreational Products (BRP), which is one of the world's largest producers of PWCs, sportsboats and outboard motors.


Motor Boats Monthly, 27 June 2007




Since most deals like this involve asset stripping and lay offs can we expect the quality of the output to fall?

 

[LadyInBed]

AWB's and PWC's - Whata combination /forums/images/graemlins/ooo.gif

 

[rickp]

Not always - it doesn't seem to have harmed Ferretti at all....

Rick

 

[npf1]

I wonder what the plans are to save costs.

 

[Pinnacle]

Two observations.

1) Crude P/E is 24.3.
2) Difficult to see what assets could be stripped. Even if they own the site freehold, it is in the middle of nowhere, so hard to see any development value. V expensive machinery in the factory would have a very limited second hand value.

So, mebbee, they really have bought it to grow it!

 

[BlueSkyNick]

I think Cutter's point was that their quality could fall (cynics would say this isnt possible), if they cut cost in the manufacturing process rather than asset stripping.

 

[arfa]

Bain have also announced the US$2.1bn acquisition of Guitar center in the US today. Any forumites see the synergies in this one ? /forums/images/graemlins/blush.gif

 

[ShipsWoofy]

I am surprised they have not tapped into the once lucrative ‘home complete’ market, it opens up big boat ownership to a number of people who otherwise could not dream of owning their own cruiser.

Look how many companies survived and prospered through the 70's and 80's that way, the most important I would say being Newbridge Boats (IIRC).

 

[Dromomaniac]

Well I suppose it will add another string to their bow..

(sorry but couldn't resist writing that.)

 

[BlueSkyNick]

Again, cynics would say they already have - you just don't know which bits you have to complete yourself until you've sailed it for a year !

 

[npf1]

Maybe they have a plan to blow mould one piece hulls in acrylic - like bath tubs are made (?) - and fit out the interiors with mdf!!!

 

[Pinnacle]

Possibly the quality may fall, but I don't think that is what Cutter was saying :-

"Since most deals like this involve asset stripping and lay offs can we expect the quality of the output to fall?"

Anyway, only time will tell.........

 

[tcm]

ooh, the idea that an asset strip is bound to happen is a bit horrid? The buyout by private equity bods could easily help the company. And anyway if the owners planned to sell up there was no other option other than to, er, float...

 

[BlueSkyNick]

Fair comment - proves that what I thought I read is not the same as what was writ !! /forums/images/graemlins/smile.gif

 

[Pinnacle]

.........well, you just watch them asset strip and prove me wrong!!!!!!! /forums/images/graemlins/laugh.gif

 

[Pinnacle]

Fred drift I know........ is your engine vibration issue sorted yet?

 

[zefender]

oohnoo! I post a mildly cricial comment about private equity companies and a week later they buy the business that buillt my boat. I'd better shut up, since I own a Jag too (probably next on the PE target list). Since the deal is 5 x annual sales, and growing, it's hard to see any asset stripping opportunity. What Bav needs is a decent brand so I'd expect to see an acquisition of a 'premium name' to be folded into the the existing operation.

Of course it isn''t necessarily great news to have a company bought by a PE firm but I suppose it's a bit better than say being a boatbuilder and having a marina company buy it, just for the marina bit and to then sell on the boatbuilding arm elsewhere, for thruppenceha'penny (Big Nick take note!)

 

[Whitelighter]

Surely you wouldn't be refering to A H ..... & Sons

 

[PeterGibbs]

Amazing - to read the learned comments about Bav boats posted on these pages by non-owners, you'd think Bavaria would have had to pay Bain to take the crumbling mess of pottage away for decent burial...

And to think of the 3,500 mugs bilked each year out of their savings to acquire such liabilitites....it shouldn't be allowed.

Just goes to show what due diligence can throw up.....!

PWG

 

[BlueSkyNick]

[ QUOTE ]
.... I suppose it's a bit better than say being a boatbuilder and having a marina company buy it, just for the marina bit and to then sell on the boatbuilding arm elsewhere, for thruppenceha'penny (Big Nick take note!)

[/ QUOTE ]15- All !