Brunswick Announces Initiative to Exit Hatteras-Cabo Brands, Says Board Authorized to Seek Buyer; Sees $70-80M in Charges
Brunswick Corporation (NYSE: BC) announced today that its board of directors has authorized the Company to seek a buyer for its Hatteras and CABO brands of motoryachts and sportfishing convertibles.
"This action reflects our decision to exit the sportfishing convertible category and to concentrate our resources in the yacht segment on our remaining brands, Sea Ray and Meridian Yachts. When completed, this action will also contribute to our goal of a break-even or better Boat Segment in 2013, even if the larger sterndrive/inboard fiberglass markets do not improve," said Brunswick Chairman and Chief Executive Officer Dustan E. McCoy.
"The current plan assumes that the eventual purchaser will retain both the physical plant and the talented workforce of Hatteras/CABO. During the sale process, which we seek to complete in an expeditious manner, Hatteras and CABO will maintain ongoing operations, and we will keep our employees and dealer network informed of our progress."
As a result of this decision, the Company expects to record charges in the range of $70 million to $80 million, a majority of which will be recorded in the fourth quarter of 2012.
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