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Brunswick Corporation

Brunswick Corp. has completed its acquisition of Power Products - Global Marine & Mobile business, which includes the global marine, specialty vehicle, mobile, industrial power, and transportation aftermarket products businesses of Power Products, for $910 million in cash from San Francisco-based private equity firm Genstar Capital.

As previously announced, Genstar will retain Power Products' Electrical Construction & Maintenance business, now known as ECM Industries, which includes the Gardner Bender, Bergen, King, and Sperry Instruments brands.

With this acquisition, Brunswick adds a broad, highly attractive, and complementary product portfolio of 11 top brands, including Ancor, BEP, Blue Sea Systems, Czone, Del City, Lenco Marine, Marinco, Mastervolt, Park Power, Progressive Industries, and ProMariner to its global Mercury Marine parts and accessories (P&A) business.

Power Products is a leading provider of electrical products, such as battery and power management and digital switching, to marine and other recreational and specialty vehicle markets. The group also manufactures and distributes a wide-ranging and diverse portfolio of marine and transportation parts and accessories.

Power Products joins Mercury Marine's P&A organization. Mercury Marine is Brunswick's largest division, and a global leader in marine propulsion as well as marine parts and accessories.

Power Products' revenues totaled approximately $233 million for the trailing 12-month period ended March 31, 2018, with attractive revenue growth, along with strong margin and earnings levels.

As planned, Brunswick used a combination of 1, 3 and 5-year term loans, totaling $800 million, along with cash on its balance sheet to finance the transaction. Brunswick remains committed to retaining its investment grade credit rating.

As announced earlier, Brunswick plans to refinance a portion of the short-term bank loans with long-term debt later this year and lower its pro forma debt-to-EBITDA ratio to comfortably below 1.5X by the end of 2019.

"This transaction advances Brunswick's leadership by adding integrated electrical systems solutions to the marine market and an array of other mobile, specialty vehicle and industrial applications. Power Products has an extensive aftermarket presence which provides a consistent revenue stream, with attractive margins, that helps to strengthen Brunswick's overall business profile," said Brunswick Chairman and Chief Executive Officer Mark Schwabero. "Along with welcoming an accomplished and respected global workforce, we are also adding a talented, experienced, and customer-focused management team, which will remain in place and play a major role in the execution of our strategy."

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