PURSUIT to be sold to MALIBU for $100-million

A conversation among Whalers
jimh
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PURSUIT to be sold to MALIBU for $100-million

Postby jimh » Wed Aug 22, 2018 3:12 pm

Just announced is the pending sale of the PURSUIT boat brand and manufcaturing faciliities to MALIBU, with the deal described as a $100-million package. This will separate PURSUIT from its big-sister brand TIARA YACHTS, which will remain under the S2 umbrella and ownership by the Slikkers family. Leon Slikkers was the founder of SLICKCRAFT, which he later sold, then founded S2. At first S2 made sailboats up to 36-feet in length. After a non-compete agreement expired, Slikkers returned to powerboat manufacturing with TIARA and PURSUIT brands.

All the S2 family boats were very high-quality craftsmanship, and they have taken a top-tier position in their markets. Sailboat production ceased some time ago, but TIARA and PURSUIT have been great brands in power boats, with PURSUIT moving into outboard engine power or sterndrive power, and TIARA using inboard power for larger yachts.

More details about the purchase are given in a statement from MALIBU:

https://images.saymedia-content.com/.image/cs_srgb/MTU3OTA4NDM0NzQ0NzgwNTEx/malibu-boats-signs-definitive-agreement-to-acquire-the-assets-of-pursuit-boats-from-s2-yachts.pdf

Larger outboard-engine powered offshore boats have become a very competitive field, as we know from Boston Whaler's expansion into larger boats, more than 32-feet in length and often powered by triple-engine outboard configurations or even quad-outboard engines, and with price tags of more than $500,000 to $1,000,000.

Malibu will have to establish that under their ownership the PURSUIT brand will be maintained at its high-tier production quality level, a challenge facing any new owner who buys a premium product brand.

ConB
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Re: PURSUIT to be sold to MALIBU for $100-million

Postby ConB » Thu Aug 23, 2018 12:34 pm

I don't know much about Malibu, but I hope this is not the kiss of death for Pursuit.

Con
!987 Outrage 18 / 1987 150 hp Johnson & 1969 13 / 30hp Johnson tiller

frontier
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Re: PURSUIT to be sold to MALIBU for $100-million

Postby frontier » Thu Aug 23, 2018 6:41 pm

Interesting. MALIBU just bought Cobalt Boats a little over a year ago for about $130 million.

Jadoca
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Re: PURSUIT to be sold to MALIBU for $100-million

Postby Jadoca » Fri Aug 24, 2018 12:31 am

Malibu is a premium wake, surf, and ski boat boatbuilder.

Ridge Runner
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Re: PURSUIT to be sold to MALIBU for $100-million

Postby Ridge Runner » Fri Aug 24, 2018 6:29 am

The Capital Markets like this deal. Malibu has $433M in revenue, Pursuit will add another $125M, making Malibu's annualized revenue about $550M. Malibu's stock (MBUU) jumped up nicely on the news, and their stock has been upgraded to a buy with 15% growth target to $51 a share.

They are a very passionate and focused company. Here is a video of the CEO and COO talking bout the firm: https://www.malibuboats.com/story/
Member since 2005
2005 170 Montauk, 2010 E-TEC 115 H.O.
2016 210 Montauk, 2017 E-TEC G2 200 H.O.

"Red sky at night, sailor’s delight - Red sky in the morning, sailor’s warning”

jimh
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Re: PURSUIT to be sold to MALIBU for $100-million

Postby jimh » Sun Aug 26, 2018 10:29 am

We encountered a very nice PURSUIT cruiser with twin Yamaha F350 engines in our recent cruise in Georgian Bay in July 2018. We all admired this beautiful boat--I don't know the exact model designator.

newPursuitExpressOutboard841x523.jpg
Newer PURSUIT 33-footer with twin Yamaha F350; seen here departing Sportsman's Inn in Killarney, Ontario, Georgian Bay, Lake Huron.
newPursuitExpressOutboard841x523.jpg (44.52 KiB) Viewed 1559 times


I think a PURSUIT like this would sell for about $500,000 new. It would be quite a step up from my REVENGE 22.

ASIDE: the owner, Bill, was 79-years old, had owned 24 prior boats, was running the boat himself with a woman companion, and his home port was Point-au-Baril. I hope I am up to that sort of cruising at that age--I will find out in 12 years.