Brunswick completes Navico acquisition
Brunswick Corporation has completed its acquisition of Navico, a global leader in marine electronics and sensors for $1.05 billion.
With this acquisition, Brunswick adds the Navico brands of Lowrance, Simrad, B&G, and C-MAP to its Advanced Systems Group (ASG), which includes the leading Parts & Accessories (P&A) brands in power management, digital control and monitoring, and networked devices.
“This transaction is part of our Next Wave strategy and immediately accelerates our ACES strategy and solidifies the company’s commitment to acquire businesses that strengthen Brunswick’s ability to provide complete, innovative digital solutions to OEM customers,” says Dave Foulkes, Brunswick Corporation CEO.
In June, MIN reported Brunswick Corporation had entered into a definitive agreement to acquire Navico for $1.05 billion.
“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,” Foulkes adds.
Brunswick confirms it will be using a combination of debt and cash on its balance sheet to fund the acquisition.
Navico’s revenues totaled approximately $470 million for the trailing 12-month period ended May 31, 2021, with attractive revenue growth, a strong margin profile, and a capital efficient business model. Brunswick’s P&A segment accounts for about $1.5 billion – or 35 per cent of total 2020 annual revenues. With the addition of Navico, Brunswick expects its P&A businesses to have revenues on a run-rate basis exceeding $2.0 billion. Navico’s significant aftermarket orientation and attractive margin profile further add to Brunswick’s cycle resistant business profile.
