Byline: Associated Press
LAKE FOREST, Ill. (AP) — Boat builder Brunswick Corp. announced that it is putting its Cabo and Hatteras brands of motoryachts and sportfishers up for sale.
“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.” Brunswick Chairman and Chief Executive Officer Dustan E. McCoy, said in a statement Jan. 3. “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.”
Brunswick said that it assumes the sale of the motoryacht and sportfishing lines would include both the physical plant and the workforce. The companies will continue to operate while Brunswick hunts for a buyer.
Cabo Yachts builds sportfishing express and flybridge boats from 36 to 52 feet, while Hatteras Yachts builds fiberglass sportfishing convertibles and motoryachts ranging in size from 54 to 102 feet.
Brunswick purchased Hatteras Yachts in 2001 and Cabo Yachts in 2006. Both are based in New Bern, N.C.
The company expects to record charges between $70 million to $80 million, largely in its fourth quarter, tied to this decision.