anyone else see CC buying indmar?

[brad460]

Too early to declare this “didn’t age well”…and I wouldn’t characterize this as a rumor. Anyways, Rick’s reply is as it should be..we can stop talking about it.

[sandm]

all the press says that indmar will operate as a separate company and nothing changes but we all know with mergers that means "for now".

I'm sure skiers has a good supplier agreement in place but makes ya wonder how it feels to now be incentivizing CC on another front with every boat sold(sure we all remember builders paying royalties to nautty for towers or 'bu for surf tabs) and what that supplier agreement will do in terms of pricing once it's up for renewal.

it's in indmar's best interest to continue to supply the maximum number of powerplants to a diverse range of manufacturers BUT they now have a whole lot more debt to pay back to fund the purchase price to CC. that money has to come from somewhere and it's likely at the expense of buyers down the road.

sonic has some good points in all of this....

[MJHSupra]

I'm not following you on the Debt comment, but since this is about boats and not balance sheets, AOK.

[russellsmojo]

Isn’t this just a private company selling out after record years for a bunch of $$$$? Happens all the time. Supra/Moomba is going to be a solid regardless of what is under the hatch!!


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[MJHSupra]

Yes, it sounds like Indmar was family owned. Could of been solo or had investors over the years.

Now they are part of a chain of companies in a private equity firm. I recall that is how Correct Craft got new owners years ago under a PE firm that obtained full ownership. Bunch of companies that roll into other companies. CC operates all the engine and trans companies under one area they call Liberty Technologies.

I recall reading about CC purchased a local boat company called Bryant Boats probably 5 years ago. That was just after CC got majority interest in Centurion Boats and Supreme. They were buying other boat companies too.

One day that all might be all sold too. Little fish getting eaten by bigger fish. Those bigger fish getting eaten bigger fish, etc.
Buy for X, company builds and grows, sell for Y. Meanwhile, they pay equity and ownership fees up the chain of command.

[sandm]

I'm not following you on the Debt comment

Meanwhile, they pay equity and ownership fees up the chain of command.

sounds like you are following the debt comment. CC will now expect some ROI over the next "x" years on that coming from reduced expenses or increased profits. not in the next 12 months but it'll come. I've been through this before with my current and last company with both PE ownership and larger company buyout.

it will be interesting to see what happens. CC bought several engine companies back in the day. now pcm and crusader are basically one company and built in the same plant along with a couple other variants for specialty boats. took a few years for that to happen but that's usually part of why companies of a similar industry buy each other. synergies in the non-production areas and consolidation of space are where the expenses are typically gained.

I wonder if the long term play here is assembling a boat "company" to rival or surpass 'bu and launch them public. that's where the true value is to most PE's.

and to russel's comment, skiers still builds a GREAT boat no matter who's powering it and frankly in today's world, there's nothing wrong with pcm, indmar and mercruiser. all build good motors if you can take the ford/chevy brand goggles off.

[larry_arizona]

Or Mercruiser goggles as they are neither ford or Chevy.


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[HFarr]

Or Mercruiser goggles as they are neither ford or Chevy.


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Maybe they should put Volvos in them

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[HFarr]

Yeah, I know it's still a GM block. Had one. It was also a good motor.

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[larry_arizona]

Yeah, I know it's still a GM block. Had one. It was also a good motor.

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False, it’s not a GM block. Mercruiser made their own engine.

It’s a 6.2 liter v8 block that shares rods,pistons with their 4.5 liter V6.

4.0” bore and 3.75” stroke

GM 6.2l is 4.065 bore and 3.66 stroke

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