Malibu Boats Acquires Maverick Boat Group in $150 Million Deal
By: Scott Way
Malibu Boats Inc. has acquired the Maverick Boat Group in a $150 million dollar deal. The acquisition will see the Cobia, Pathfinder, Maverick, and Hewes brands come under the Malibu Boats umbrella, which already includes Malibu, Axis, Cobalt, and Pursuit.
In the company press release, Malibu Boats CEO Jack Springer stated the purchase of Maverick "is a fantastic addition to our portfolio of industry-leading brands and underscores the strength of our M&A strategy. Maverick is highly complementary to Pursuit, expanding our saltwater outboard offerings with a strong focus in length segments under 30 feet. In particular, Maverick will allow us to not only leverage strong growth momentum, but also increase production capacity and seize previously untapped demand. We see an amazing opportunity ahead of us as we leverage the strengths of Malibu and Maverick to continue to deliver innovative boats to our customers, while driving long-term growth and profitability for our shareholders.”
Scott Deal, Chief Executive Offier with Maverick Boat Group added, "Over the last 35 years, Maverick has prioritized its culture on building strong relationships with our team members and customers, while maintaining a continued focus on performance and productivity. Malibu is a perfect partner that shares the same passion for boating, coupled with its ability to drive long-term, profitable growth.”
Taking a step back, Malibu Boats Inc. purchased Pursuit Boats in October of 2018 which brought an offshore cruising brand into the lineup. With the addition of Maverick Boat Group, Malibu will now offer a greater range of centre console, dual console, flat, and bay boats. It will also give more options in the saltwater outboard segment, as well as the under 30-foot segment. Both Pursuit and Maverick are based out of Fort Pierce, Florida, while Malibu Boats is based out of Loudon, Tennessee. Maverick, for its part, comes with an existing portfolio of over 70 dealers in the US. They also expanded their facility in 2017 with a 277,000 square foot building on a 38-acre site. The first phase of the expansion, which created 100,00 square feet of production space, was completed in 2018.
Within Maverick, the Cobia lineup will compliment the Pursuit lineup with a broader range of products in the centre console offshore segment. This strategy coincides with Malibu's existing platform in wakesports with the premium Malibu line and the budget conscious Axis offering.
Cobia is also a notable addition to the sportfishing segment, an attribute not previously offered within Malibu brands. Pathfinder builds bay boats, while Maverick and Hewes build flat boats. Combined, Malibu now presents a diverse offering that includes wakesports, sportfishing, offshore, and inland cruising.
As part of the acquisition, Malibu added a $25.0 million incremental term loan facility and increased its available borrowing capacity to $170.0 million.
For more information check out the Malibu press release.