stevenlb21
Polaris hits the water with $805 million deal for Boat Holdings

Polaris CEO Scott Wine

Polaris CEO Scott Wine

By Mark Reilly 

Managing Editor, Minneapolis / St. Paul Business Journal
May 30, 2018

Polaris Industries Inc., a maker of motorcycles, ATVs and snowmobiles, is venturing farther off-road than it's ever been before by buying Boat Holdings for $805 million.

Medina-based Polaris (NYSE: PII) announced the deal for Elkhart, Indiana-based Boat Holdings Wednesday morning. The all-cash deal will include about $100 million in future net tax benefits, meaning that the transaction has a net value of about $705 million in the long term.

Boat Holdings, which is owned by the Vogel family, management and Balmoral Funds, specializes in pontoon and party boats under brand names like Godfrey, Hurricane and Rinker boats. It had a total of about $560 million in sales last year and earnings before interest, taxes, depreciation and amortization of $74 million.

Goldman Sachs & Co. acted as financial adviser to Polaris; the company's legal team was Simpson, Thacher & Bartlett. Stephens Inc. acted as Boat Holdings’ financial adviser and Jones Day acted as legal advisor to Boat Holdings.

Though the deal takes Polaris into a new category, the company said there was a good bit of overlap with its current customer base. The demographics of off-roading and boating fans are similar, and nearly one-third of existing Polaris customers already own a boat. It also offers Polaris a counter-seasonal product to its existing snowmobile business.

“It just makes sense for us to be in the space,” said Polaris CEO Scott Wine in a Bloomberg report on the deal. Several of the company's off-roading rivals, such as Yamaha and Kawasaki, already have boat divisions.

The powerboat industry is about $8 billion in size but didn't have a strong recovery after the Great Recession. Boat Holdings, though, is growing faster than the overall market with a focus on higher-end products. Some Bennington pontoon boats can run between $60,000 and $250,000

Cheers......Steve
Penrith, NSW

2015 Indian Chieftain (Indian Motorcycle Red)
"TECUMSEH"
IMRG Membership No.  AU101486

Meanwhile back at the Ranch, Tonto disguised as a door gets his knob shot off !!!.

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Damich
In my option, to survive in today’s business climate you need to have alternative income with alternative product segments and this is just smart financial security for Polaris. 
Damian
North East Melb
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Scout LE MKIII
1930 Indian Motorcycle Outboard Engine Motor Boat Fishing Advert Print 318840

73524074-4B14-4573-9B88-1194B5B69C1C.jpeg 
Townsville QLD
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V-Twin
This is Godfrey Pontoon Party Boat current company is making.  Effectively a lounge room on water.  Looks like fun... only if I didn’t get sea sick 🤢🤮🙊

F21CFDE2-D525-49F5-8937-AA653418B3EB.jpeg 

I agree that diversification is great in our current declining economy BUT these boat companies make ‘toys’.  No one need party boats.  Whereas quad bikes are needed by folks like farmers so they will still sell when the economy softens.

However, I do feel like a ‘new baby’ has been brought home from the hospital... I want to see full attention paid to Indian and get that brand going but we now have a new ‘project’... maybe Polaris can resurrect another name with heritage, lost in the history of time... Titanic! 😝
Let's be kind to one another.
Melbourne, Victoria
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stevenlb21
You have to look at it as the American economy,  we here Australia may not need the party boat but a population of 300 million I think, the party boat would if right into the American lifestyle

Polaris is catering for there local market with other countries being a added bonus for extra income.

Polaris products are designed for  Americans first and foremost and the rest of us get whatever they desire to build
Cheers......Steve
Penrith, NSW

2015 Indian Chieftain (Indian Motorcycle Red)
"TECUMSEH"
IMRG Membership No.  AU101486

Meanwhile back at the Ranch, Tonto disguised as a door gets his knob shot off !!!.

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CHF10

I don't see the point of a lounge room on water where you can't go anywhere or do anything other than sit around.

I'd much prefer this!

[F144769823]

Live free or die!
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Dr.Shifty
CHF10 wrote:

I don't see the point of a lounge room on water where you can't go anywhere or do anything other than sit around.

I'd much prefer this!

[F144769823]



It's like bikes, you operate on the N+1 rule. You need a Road Master, a Chief Dark Horse and a Scout.

In boats you need a cruiser with sleeping capacity, a party boat, a ski boat and a jet-ski. I wonder if they do package deals. 😁
Cheers, Kim.

From Woodrising (no, nobody else has heard of it either)
Rides a Springfield Dark Horse
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CHF10
After news of this broke, Harley unveiled their new jet ski! 

[FB_IMG_1528077724780]
Live free or die!
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