Sea Ray to be sold by Brunswick Corporation

Brunswick Corporation has announced it intends to sell its banner brand Sea Ray, one of the 15 marques in the Brunswick Boat Group, with the transaction expected to be completed in the first half of 2018.

Founded by C.N. Ray in 1959, Sea Ray was bought by Brunswick for US$350 million in 1986 and, with the Bayliner brand, Brunswick Corporation was then the largest pleasure-boat builder in the world.

Sea Ray has weathered plenty of storms since and has been undergoing a transformation in recent years. Whoever gets hold of the iconic boat brand and its assets will be in a strong position to write the next chapter for Sea Ray.

The popular boat brand has been releasing some exciting new models in the last few years. These include maxi dayboats and bowriders, re-imagined sportscruisers, and luxury high-end yachts, although the latter market has been soft.

We recently tested the new 2018 Sea Ray line-up at Yacht Expo in Captiva, Florida, where the focus was very much on bigger outboard-powered boats using Mercury engines, which also hail from the Brunswick stable.

Selling outboard engines, and the marine-parts business, seems like a focus for Brunswick now — the sale of Sea Ray, plus the recent closure of Meridian, will reposition the Brunswick Boat Group as a builder of smaller boats up to about 42ft. Boston Whaler will remain the ace up its sleeve.

Brunswick Chairman and Chief Executive Officer Mark Schwabero reaffirmed that Sea Ray is an iconic brand with a rich history, strong reputation for craftsmanship, quality and styling.  

He added that Sea Ray's manufacturing facilities (in the U.S) were among the most advanced in the global marine industry, with talented and dedicated workforces.

"Our marine strategy is focused on developing, manufacturing and distributing market-leading products to recreational and commercial marine consumers through our portfolio of engine, boat and parts and accessories businesses," Schwabero explained.

"This decision was made after careful consideration, and reflects the evolving contribution that the Sea Ray brand has made to our marine portfolio.

"Our remaining brands will continue to be important elements of a robust, balanced marine business, with our boat portfolio serving healthy, expanding market segments," Schwabero explained.  

Brunswick Corporation says its strategy will provide the best opportunities for growth and complement its other marine offerings, including engines, parts and accessories.

Schwabero said the "shift" will also improve risk and margin profile and is consistent with the company’s commitment to drive shareholder value.

"We believe that the Sea Ray business, through its leading brand and exciting product line, offers attractive value creation opportunities to a new owner," added Schwabero.

Schwabero said Brunswick Corporation will manage Sea Ray during the sale process by executing its business and product plans in support of its dealers and customers.

Brunswick says it will report the results of Sea Ray, as well as its Meridian boat brand which is also wrapped up in the sale, as discontinued operations for accounting purposes going forward.

The big U.S. marine company says it welcomes inquiries from interested buyers of Sea Ray, but it's also likely to chalk up a loss on the sale.

More on the business move at
Brunswick Corporation.