Notable Mergers and Acquisitions of the Day 07/29: BC, CBT, TYC
- Brunswick Corporation (NYSE: BC) today announced that it has sold Triton Boats to Fishing Holdings, LLC, an affiliate of Platinum Equity. Terms of the transaction were not disclosed.
"This decision was part of our ongoing strategic review to further refine our product portfolio and best focus our resources on those brands and marine segments that we believe are core to our success going forward," said Brunswick Chairman and Chief Executive Officer Dustan E. McCoy. "As such, Brunswick will maintain its leadership position in the recreational and fishing boat markets, with a strong presence in the freshwater and sportfishing segments as well as leading brands in the runabout/cruiser and yachts segments."
In connection with this transaction, production of Triton fiberglass boats will be relocated from Ashland City, Tenn., to Flippin, Ark. Lund fiberglass manufacturing will be moved to the Brunswick Boat Group's (BBG) Tellico fiberglass boat manufacturing facility in Vonore, Tenn., while Trophy fiberglass fishing boats will continue to be built in Ashland City through the remainder of the year as Brunswick evaluates strategic alternatives for the brand.
Brunswick will retain rights to certain intellectual property and other rights to Triton aluminum boats, and will continue to sell those models under license as part of Brunswick's aluminum portfolio. These boats will continue to be built at BBG's Lebanon, Mo., aluminum manufacturing facility. BBG's Cypress Cay pontoon boats, which are manufactured in Ft. Wayne, Ind., and carried by many Triton dealers, are not affected by this transaction.
Brunswick's Mercury Marine unit will continue supplying propulsion systems to Triton and Fishing Holdings' other brands.
As a result of these actions, Brunswick said it estimates that the associated restructuring charges could total between $18 million to $20 million, pretax, of which $15 million was recorded in Brunswick's second quarter financial results.
"These decisions, while strategic in nature, are never easy or without difficult consequences," McCoy concluded, "but they are nevertheless required by business realities, and are no reflection upon the dedication and expertise of the men and women at the Ashland City facility."
- Cabot Corporation (NYSE: CBT) today announced the acquisition of Oxonica Materials Inc. (OMI), a wholly owned subsidiary of Oxonica plc. The purchase will complement Cabot's existing Security Business and expands Cabot's portfolio of security technologies.
OMI is a leading developer of Surface Enhanced Raman Scattering (SERS) materials and detection methods. These SERS materials provide a unique signal that can be detected using specialized readers and therefore provide highly counterfeit-resistant security solutions for a broad range of applications including brand security, fuel markers, tax stamps and identification.
Cabot Corporation's Security Business is a leading supplier of covert taggants for many high security applications. Covert taggants are unique, hard-to-replicate particles added to inks, paper, films and other materials that can only be detected with a specialized reader. Beyond barcodes and optical authentication systems, covert taggants are used to add additional security features to applications from passports to packaging.
"We are pleased to have completed the acquisition of Oxonica Materials," said Fred von Gottberg, Vice President and General Manager of Cabot's New Business Segment. "The purchase is a testament to our continued commitment to invest in new technologies and innovation. This acquisition will enable us to leverage the technical portfolios and commercial positions of both organizations to create a stronger security materials business within Cabot."
Dr. Michael Natan, CEO of Oxonica Materials Inc., who will join Cabot Corporation with the acquisition, said, "Joining Cabot will further accelerate the commercialization of SERS taggant technology. I am excited to merge Cabot's technical and business leadership with OMI's technology, and together create a stronger Security Business."
- Tyco International Ltd. (NYSE: TYC) today announced that it has reached a definitive agreement to sell the European Waterworks business within its Flow Control segment to the private equity firm Triton for approximately $245 million.
Tyco Waterworks Europe designs, manufactures and supplies equipment for commercial and residential customers in the water supply chain. Its products include valves, hydrants, fittings, house connection components and water meter boxes sold under brands such as Erhard, Belgicast, Bayard and Atplas. The business generates about $350 million in annual revenue, has 13 manufacturing sites and employs approximately 1,500 people.
"The Waterworks business has a team of dedicated employees and a reputation for producing high-quality products," said Ed Breen, Chairman and Chief Executive Officer of Tyco. "This transaction is a further step to refine our portfolio and allows us to sharpen our focus on select water infrastructure projects and regions."
The transaction is expected to close by the end of the fiscal year, subject to customary closing conditions, and the company expects to record a gain on the sale of the business.
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