BRP takes control of Aussie boat-builder Telwater

Under the terms of the deal, BRP will take an 80 per cent stake in the Coomera-based company.

Telwater is about to announce a major launch of its Yellowfin range that almost triples the number of products offered. The move is believed to allow Telwater to enter into premium parts of the alloy boat market it has never competed in before.

Under the terms of the deal, Telwater owner and managing director Paul Phelan will hold the remaining 20 per cent stake in the Aussie boat maker, which builds brands including Quintrex, Stacer, Savage and Yellowfin Plate.

"Over 30 years ago, I started as a welder working with my hands," Phelan said ina statement released after the investerment was announced.

"Today I am handing over part of the Telwater organization to BRP, an expert in every industry it is in," he said.

"Growing Telwater to what it is today has been an extraordinary journey, and I’m excited to see it join the BRP family.

"As a part of the BRP Marine Group, Telwater boat brands will learn from BRP’s innovation and be able to further expand internationally."

In a statement sent to the Canadian stock exchange, BRP indicated it had big plans for Telwater.

“Once the intended acquisition is completed, Telwater will join the BRP Marine Group as an independent product line, along with the Evinrude, Alumacraft and Manitou brands.

“This will allow BRP to increase and strengthen its position in the aluminum boat industry in regions with excellent growth potential.

“Having this manufacturing footprint in Australia will give BRP additional options for supporting other product lines in the future.”

Telwater said it would be "business as usual" for the company's workers.

"With a more solidified partnership, the desire to own a Telwater/Evinrude Boat-motor-trailer package has never been so strong," it said in a statement issued in the wake of the BRP announcement.

"Telwater’s 230 dealerships across Australia, Asia Pacific and Europe will continue to benefit from the organisation's state."

Telwater said the BRP Marine Group would also be able to leverage Telwater’s competitive advantages, such as its stretch forming capabilities, manufacturing excellence and Australian market share.

Telwater currently builds about 8000 boats and 5500 trailers a year. The Coomera factory employs more than 270 workers, and more than 180 dealers spread throughout  Australia and the Asia Pacific.

BRP and Telwater have been in partnership since 2011 when the two companies inked a deal to offer BRP's Evinrude outboard engines on Telwater products. In 2016, Telwater was appointed as Evinrude's exclusive Australian dealer.

BRP, meanwhile, also builds Sea-Doo jet skis, Lynx snowmobiles Can-Am trikes and Rotax engines used for go-karts, motorcycles and light aircraft. It has footholds in about 120 countries globally, and last year earned $A5.5 billion in revenue.

Telwater has celebrated a comeback in recent years after Australia's boating indistry was hit hard by the 2008-09 Global Financial Crisis – the worldwide credit squeeze that severely stalled boat sales in the wake of the event. Before the GFC hit, Telwater's build numbers had hovered around 12,000 boats a year.

More recently, though, a rise in the number of so-called "cashed-up tradies" sparked by the housing and mining boom have helped to turn the business around.