Malibu Boats agreed to acquire the assets of Pursuit Boats from S2 Yachts for $100 million. Malibu will fund the transaction with cash on hand and a borrowing under an incremental revolving credit facility added to its existing revolving credit facility.
According to a related 8-K filing, the amendment increased the amount available under the revolver by $50 million from $35 million to $85 million. The new loans have the same terms and conditions as the revolving loans under the credit agreement, with the exception of a ticking fee, which will accrue on the incremental commitment. SunTrust Bank served as administrative agent, swingline lender and issuing bank on the amendment.
“Pursuit is an incredible addition to the Malibu family. The Pursuit brand maintains a strong reputation for luxurious appointments, innovation, and premium quality, and this highly complementary business creates strong strategic opportunities to enhance product development across our portfolio of brands. Together, we have an opportunity to broaden our outboard offering, while leveraging the manufacturing and design expertise of the respective teams to continue to deliver the premium products customers expect,” said Jack Springer, CEO of Malibu Boats.
The acquisition is expected to close in the fourth calendar quarter of 2018, subject to customary closing conditions.
Raymond James is acting as Malibu’s financial advisor and O’Melveny & Myers as its legal counsel. Angle Advisors is acting as S2’s financial advisor and Varnum as its legal counsel.
Founded 41 years ago and located in Fort Pierce, FL, Pursuit serves the saltwater outboard fishing market and offers 15 models of offshore, dual console and center console boats.
Based in Loudon, TN, Malibu Boats designs, manufactures and markets a diverse range of recreational powerboats, including performance sport boats, sterndrive and outboard boats.
