Brunswick Corp is acquiring Norway-headquartered vessel bridge systems supplier Navico for US$1.05Bn to accelerate growth in marine technology
The Illinois, US-headquartered marine product supplier has agreed to purchase Navico for its marine electronics and sensors businesses using a combination of debt and cash on its balance sheet.
Brunswick intends to add Navico’s Lowrance, Simrad, B&G, and C-MAP brands to its Advanced Systems Group (ASG) once the company is purchased from owners Altor Fund IV and Goldman Sachs Asset Management.
ASG supplies power management, digital control, monitoring and networked devices in maritime industries.
“The acquisition of Navico and its brands will immediately accelerate Brunswick’s autonomy, connectivity, electrification and shared-access strategy,” said Brunswick chief executive Dave Foulkes, “and supports our vision to deliver distinctive new products and technology-enabled experiences.”
Navico provides multifunctional displays, fish finders, autopilots, sonar radar, and cartography to commercial and leisure vessels.
“We will continue to invest both in organic initiatives and acquisitions to maintain our position of global product leadership,” said Mr Foulkes, “and the addition of Navico to our existing brand portfolio will further strengthen our ability to provide complete, innovative digital solutions to consumers and comprehensive, integrated systems offerings to our OEM customers.”
Navico’s revenues totalled US$470M for the 12-month period to 31 May 2021.
Brunswick’s parts and accessories segment accounts for US$1.5Bn, which is 35% of total 2020 annual revenues. With the addition of Navico, Brunswick expects its parts and accessories businesses to have revenues on a run-rate basis exceeding US$2Bn.
Navico president and chief executive Knut Frostad expects further support from the Brunswick family to further strengthen its product range and services. “We cannot wait to begin our journey with Brunswick and share our passion and dedication with their team,” said Mr Frostad.
ASG president Brett Dibkey said Navico’s addition to the group will solidify its commitment to creating better OEM experiences. “We have a very broad product portfolio, ranging from general marine products to power management solutions and we will leverage the expertise of each brand to generate revenue and operating synergies to promote growth for both ASG and Navico,” said Mr Dibkey.
“We are also adding a talented, experienced and consumer-focused management team, which is expected to remain in place and play a major role in the execution of our strategy.”
JP Morgan Securities served as exclusive financial advisor to Brunswick and is providing committed financing with Baker McKenzie and Schjødt serving as legal counsel to Brunswick on the transaction.
Goldman Sachs Bank Europe, Sweden Bankfilial, and Carnegie acted as financial advisors to Altor, while Goldman Sachs Asset Management and Marine Innovations Group; Sullivan & Cromwell and Wiersholm provided legal advisory services on the transaction.
Navico and Brunswick expect the transaction to be completed in Q4 2021. It is subject to the usual and customary closing conditions as well as regulatory review and approval.
Brunswick main brands include Mercury Marine outboard engines; Mercury MerCruiser sterndrive and inboard packages; Mercury global parts and accessories including propellers and SmartCraft electronics.
Advanced Systems Group includes the brands MotorGuide, Attwood, Mastervolt, Blue Sea Systems, CZone, and ASG Connect system integrators. Also, Payne’s Marine, Kellogg Marine, and Lankhorst Taselaar marine parts distribution; Mercury and Quicksilver parts and oils and many different leisure boat brands.