Brunswick Corporation : Brunswick Corporation : Brunswick Announces Plan To
Exit Hatteras And CABO Brands
LAKE FOREST, Ill. Jan. 3, 2013 --- 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.
Brunswick purchased Hatteras Yachts in 2001 and CABO in 2006. Both are based
in New Bern, N.C.
Certain statements in this news release are forward-looking as defined in the
Private Securities Litigation Reform Act of 1995. Such statements are based on
current expectations, estimates and projections about Brunswick's business.
These statements are not guarantees of future performance and involve certain
risks and uncertainties that may cause actual results to differ materially
from expectations as of the date of this news release. Economic,
competitive, governmental and other factors that may affect Brunswick's
operations are discussed in the "Risk Factors" section of the Company's Annual
Report on Form 10-K for 2011 and are incorporated by reference. Such
forward-looking statements speak only as of the date on which they are made
and Brunswick does not undertake any obligation to update any forward-looking
statements to reflect events or circumstances after the date of this news
release, or for changes made to this document by wire services or Internet
Headquartered in Lake Forest, Ill., Brunswick Corporation endeavors to instill
"Genuine Ingenuity"(TM) in all its leading consumer brands, including Mercury
and Mariner outboard engines; Mercury MerCruiser sterndrives and inboard
engines; MotorGuide trolling motors; Attwood marine parts and accessories;
Land 'N' Sea, Kellogg Marine, and Diversified Marine parts and accessories
distributors; Bayliner, Boston Whaler, Brunswick Commercial and Government
Products, Cabo Yachts, Crestliner, Cypress Cay, Harris FloteBote, Hatteras,
Lowe, Lund, Meridian, Princecraft, Quicksilver, Rayglass, Sea Ray, Trophy,
Uttern and Valiant boats; Life Fitness and Hammer Strength fitness equipment;
Brunswick bowling centers, equipment and consumer products; Brunswick
billiards tables and foosball tables. For more information, visit
Contact: Daniel Kubera
Director - Media Relations and Corporate Communications
Contact: Bruce Byots
Vice President - Corporate and Investor Relations
This announcement is distributed by Thomson Reuters on behalf of Thomson
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.
Source: Brunswick Corporation via Thomson Reuters ONE
Press spacebar to pause and continue. Press esc to stop.