MasterCraft to Acquire Crest Marine

September 10, 2018

Yachting Journal

Photo: NauticStar, LLC

MCBC Holdings, the parent entity of MasterCraft Boat Company, and NauticStar announced that it has entered into a definitive agreement to acquire Crest Marine, a vertically integrated manufacturer of high-quality pontoon boats in the United States, for approximately $80 million.

MasterCraft also expects that approximately $10 million net present value of future net tax benefits will accrue to the combined company. The transaction is expected to close in the fourth quarter of calendar 2018, subject to customary closing conditions, and is anticipated to be immediately accretive to adjusted earnings per share.

A press release said that with the acquisitions of Crest and NauticStar, MasterCraft is the only boat manufacturer with three complementary, dedicated brands serving the three fastest-growing segments of the powerboat industry. MasterCraft's operational excellence, product development and distribution footprint provide opportunity to further drive growth and margin expansion.

Founded in 1957, Crest is privately owned and operated out of a 150,000 square-foot manufacturing facility located in Owosso, Michigan. Crest currently sells its boats in the United States and Canada through an established network of approximately 120 dealer locations.

Terry McNew, MasterCraft's President and Chief Executive Officer, commented, "We are very excited to welcome Crest to the MasterCraft Family. Crest is a well-respected, expertly built and uniquely positioned brand. The company's pontoon boats provide us with additional product diversity and presence in the attractive pontoon segment, as well as further establishes MasterCraft in the outboard propulsion category, two of the fastest growing areas within the broader boating industry. With its vertically-integrated business model, Crest differentiates itself from its competitors, allowing it to better control pricing, and generate higher margins.

Crest owner and CEO, Patrick Fenton, commented, "MasterCraft is an iconic brand known for quality, performance and innovation. Our entire organization is excited to join their team, and leverage their experience and operational know-how to further grow Crest. This is a great opportunity for all of our employees, as well as customers, dealer partners and suppliers."

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