Brunswick Announces Sale of Baja Marine Assets to Fountain Powerboats
March 20 2008 - 3:04PM
PR Newswire (US)
LAKE FOREST, Ill., March 20 /PRNewswire-FirstCall/ -- Brunswick
Corporation (NYSE:BC) today announced the signing of a letter of
intent to sell certain assets relating to its Baja boat business to
Fountain Powerboat Industries, Inc., of Washington, N.C. Terms of
the agreement were not disclosed, and completion of the sale is
subject to certain conditions. In preparation for the transition,
Brunswick plans to end production of Baja boats in Bucyrus, Ohio,
by the end of May, consistent with the end of the 2008 model year.
As a result of these actions, the company said it estimates that
asset write-downs, along with severance and other costs associated
with the plant closure, could total between $10 million to $15
million, pre-tax. "This was a strategic decision to further refine
our product portfolio and best focus our resources on brands and
marine segments that we believe are core to our success going
forward," said Brunswick Chairman and Chief Executive Officer
Dustan E. McCoy. "This action in no way reflects upon Baja or the
abilities and performance of the Bucyrus work force. We believe,
however, that Baja and its dealers will ultimately benefit from
being a part of Fountain Powerboats, a company that, like Baja, is
a leader in high-performance boats." When completed, the closing of
the Baja plant will mean a loss of approximately 285 positions.
Baja leadership will be working diligently to transfer as many
employees as possible and practical to either Fountain or other
Brunswick manufacturing facilities. For those employees who do not
have the opportunity or do not wish to transfer, severance will be
provided. About Brunswick Headquartered in Lake Forest, Ill.,
Brunswick Corporation endeavors to instill "Genuine Ingenuity"(TM)
in all its leading consumer brands, including Mercury and Mariner
outboard engines; Mercury MerCruiser sterndrives and inboard
engines; MotorGuide trolling motors; Teignbridge propellers;
MotoTron electronic controls; Albemarle, Arvor, Baja, Bayliner,
Bermuda, Boston Whaler, Cabo Yachts, Crestliner, Cypress Cay,
Harris, Hatteras, Kayot, Laguna, Lowe, Lund, Maxum, Meridian,
Ornvik, Palmetto, Princecraft, Quicksilver, Rayglass, Savage, Sea
Boss, Sea Pro, Sea Ray, Sealine, Triton, Trophy, Uttern and Valiant
boats; Attwood marine parts and accessories; Land 'N' Sea, Kellogg
Marine, Diversified Marine and Benrock parts and accessories
distributors; IDS dealer management systems; Life Fitness, Hammer
Strength and ParaBody fitness equipment; Brunswick bowling centers,
equipment and consumer products; Brunswick billiards tables; and
Dynamo, Tornado and Valley pool tables, Air Hockey and foosball
tables. For more information, visit http://www.brunswick.com/.
DATASOURCE: Brunswick Corporation CONTACT: Daniel Kubera, Director
- Media Relations and Corporate Communications of Brunswick
Corporation, +1-847-735-4617, Web site: http://www.brunswick.com/
Copyright
Brunswick (NYSE:BC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Brunswick (NYSE:BC)
Historical Stock Chart
From Jul 2023 to Jul 2024