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ContinuousWave: Small Boat Electrical
Navman, Northstar Sold!
|Author||Topic: Navman, Northstar Sold!|
posted 02-15-2007 11:53 PM ET (US)
Verbatim Text of Press Release Follows:
LAKE FOREST, Ill., Feb. 14 /PRNewswire-FirstCall/ -- Brunswick Corporation (NYSE: BC) today announced it has signed a definitive agreement to sell Brunswick New Technologies' marine electronics operations to Navico International Ltd. The purchase will include the Northstar, MX Marine and Navman marine brands. Terms of the transaction were not disclosed. Completion of the sale is subject to regulatory approvals.
Navico, based in Lysaker, Norway, is a leading supplier of marine electronics with its Lowrance, Simrad, Eagle and B&G marine electronics brands.
"When we announced our intent to sell portions of Brunswick New Technologies (BNT), we stated at that time that we believed that BNT's long- term prospects may be better achieved under different ownership -- one that is focused on BNT's technological expertise -- to enable it to reach its full potential," explained Dustan E. McCoy, Brunswick chairman and chief executive officer. "As such, we are particularly pleased to find such a strategic buyer who already has a significant presence in the global marine electronics marketplace."
The company said the transaction also includes a supply agreement whereby Brunswick will purchase Navico products.
Brunswick announced in April 2006 its decision to pursue the sale of substantially all of its BNT business unit, which includes fleet management, marine electronics and portable navigation device (PND) products. The company said it is continuing to pursue the sale of the fleet management and PND segments of the business.
posted 02-15-2007 11:56 PM ET (US)
Navico will certainly have a huge number of brands under its corporate tent after this. It will be interesting to see if all the brands are retained, or some are blended together.
I'll be watching for reaction in the New Zealand press.
posted 02-15-2007 11:58 PM ET (US)
Here is the news coverage with a down-under point of view:
US owner to offload Navman
1:00PM Thursday February 15, 2007
New Zealand high-tech firm Navman has been carved up for sale by its United States owner Brunswick Corp.
Brunswick Corp, the world's largest maker of recreational boats, said it agreed to sell its marine electronics operations, including Navman's marine brands, to Norway-based Navico International Ltd.
The purchase also includes the Northstar and MX Marine, the company said in a statement.
Brunswick revealed plans ten months ago to sell its new technologies operations, which makes global positioning systems.
"When we announced our intent to sell portions of Brunswick New Technologies [BNT], we stated at that time that we believed that BNT's long-term prospects may be better achieved under different ownership -- one that is focused on BNT's technological expertise -- to enable it to reach its full potential," said Brunswick chairman and chief executive officer Dustan E. McCoy.
The transaction terms including price were not disclosed but the Herald reported in December that problems selling the new technologies business, which owns Navman, resulted in the book value of the US company being slashed by $100 million to $137 million.
In a statement to the New York Stock Exchange, Brunswick said: "Based on the performance of this operation and recent discussions with potential buyers, the company has concluded that proceeds from the sale of BNT will be less than its book value."
"These conditions will result in a non-cash asset impairment charge estimated in the range of US$70 million to US$95 million in the fourth quarter, primarily driven by the portable navigation device business."
The sale does not include Navman's portable navigational device division or fleet management division, which are both still for sale.
Brunswick New Technologies bought Navman two years ago for $108 million.
BNT, mainly comprising Navman, had annual sales last year of US$317 million ($507 million) and Navman reported a profit of $127.2 million.
- NZ HERALD STAFF/REUTERS
posted 02-16-2007 12:01 AM ET (US)
Hmm--Perhaps some part of NAVMAN will end up back where it started--in the founder's hands.
US owners selling Navman off in pieces
American owners of navigation technology company Navman have broken up the business and are selling it off in pieces.
Navman was founded by entrepreneur Peter Maire in his Auckland garage in 1986, and sold to American marine and leisure products giant Brunswick for $108 million in 2004.
Now Norwegian company Navico International is to buy Brunswick's marine electronics operations including Northstar, MX Marine and Navman marine brands.
The remaining divisions of Navman – portable navigation devices and fleet management – are still for sale.
Mr Maire told today's New Zealand Herald he wanted to buy back the fleet-tracking business, including a commercial Global Positioning Systems (GPS) solutions division. Fleet tracking gives companies with a large number of vehicles the ability to follow their every move from head office. Through his Tahia Investments vehicle Mr Maire has already made a range of hi-tech investments, taking stakes in Rakon and payment technology company Cadmus.
posted 07-29-2007 06:01 PM ET (US)
Following up on the sell off of NAVMAN, Brunswick recently announced it has reached an agreement to sell off the final portion of the NAVMAN business it acquired from founder Peter Maire.
LAKE FOREST, Ill., July 16 /PRNewswire-FirstCall/ -- Brunswick Corporation today announced that it has reached a definitive agreement to sell Brunswick New Technologies' (BNT) fleet management business unit to Navman Wireless Holdings L.P. Terms of the transaction were not disclosed, and completion of the sale is subject to customary conditions.
Comment in the New Zealand Press was as follows:
SOURCE: The National Business Review (of New Zealand)
posted 07-30-2007 06:57 PM ET (US)
jimh, we last touched on this subject in May 2006 here: http://continuouswave.com/ubb/Forum1/HTML/012248.html . Then as now, I wonder if this aggressive buying of transoms and the ongoing cost of R&D has led to recent divestitures.
I'm still not sure of the Jekyll/Hyde move of Verado/OptiMax! I can not believe anyone could not admit that the E-TEC syndrome has caused quite a stir in the marine engine segment. I know conventional wisdom says 2-strokes are on the wane, but someone at Mercury obviously thought otherwise.
This sale may indicate a trend at Brunswick to reverse the buying and concentrate on its core businesses. Nonetheless, with margins shrinking, fuel prices high and R&D cost taking years to matriculate into profits, I'll wager that we'll see more of these type of money raising activities in the near future.
Thanks for the update!
posted 07-30-2007 08:39 PM ET (US)
Did Brunswick make money or lose money on the sale of Navman?
posted 07-31-2007 11:08 AM ET (US)
WT, I would assume it may be a break even deal. The press release didn't disclose the sale price but did say,
If the book price was lowered $137 million and they admit selling it for less than book, I would hazard a guess of something close to their purchase cost. Just a guess! Now, another question remains; are they valuing the entire BNT at $137 million or just the part that was sold. If it is the latter, then your question can't be answered until they sell the remaining portions of BNT.
My best guess is that regardless, it probably will be a wash.
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