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A California LLC (limited liability corporation) has proffered $55 million to a federal bankruptcy court to acquire Ranger Boats of Flippin and other assets of Minneapolis-based Genmar Holdings Inc., according to court documents filed Monday
The plant at Flippin has employed up to 800 as recently as 2007 in the production of dozens of sport boat models for fishing and recreation on fresh and salt water. The plant has operated at about 50 percent capacity since the recession and a shake-up in financial sectors began last year.
Other assets targeted in the bid from Project Boat Holdings LLC include Stratos, Champion, Wellcraft, Four Winns, Larson and Glastron boats, and related assets and manufacturing facilities. The LLC is an affiliate of Platinum Equity, a global acquisition firm based in Beverly Hills, Calif., according to court documents.
All of the boat companies are holdings of Genmar Holdings Inc. that filed for bankruptcy protection from creditors on June 1 while the company then planned to reorganize under provisions of Chapter 11 bankruptcy law. Genmar and its creditors made a sudden turn last month to offer Genmar assets for sale through a court supervised auction to bring needed capital to pay Genmar creditors and ready the manufacturers to produce 2010 boat models.
In proffering the bid that was qualified by the court, Platinum Equity became the so-called "stalking-horse" bidder in an auction process for Genmar's assets, to be conducted on Jan. 7, subject to bankruptcy court approval.
Platinum entered into a definitive agreement, in which it will acquire a substantial portion of Genmar's assets, subject to being the highest bidder in accordance with the bid procedures and the auction process established in Section 363 of the U.S. Bankruptcy Code", said Mark W. Sheffert, Genmar's chief restructuring officer and chairman and CEO of Manchester Companies, Inc. "We are pleased to have a firm of Platinum's resources and reputation taking the lead in the auction process."
In the upcoming weeks, the company will accelerate the sale processes related to Genmar's remaining businesses and non-core assets pursuant to the procedures and timelines to be established by the bankruptcy court.
Randy Hopper, president of Ranger Boats, fired off a letter to Ranger dealers on Monday illustrating the boat builder's hopes for an outcome at auction:
To preserve Ranger's heritage as the industry's premiere brand.
To have adequate capital to remain an industry leader through present financially tumultuous times.
"We absolutely believe that the path we are now on more than accomplishes these objectives," Hopper said. "Ranger's management team is engaged and motivated and I feel that we will emerge in the strongest position that we have enjoyed in a long time. You can rest assured that we will use all available resources to support our dealer network with the objective of growing both of our businesses and the sport of fishing. Ranger's best days are ahead and you will be a part of them."
Hopper also expressed thanks to dealers for staying with the Ranger brand during the financial crisis that boat builders and sellers didn't create. The experience of the past two years was "extremely educational and humbling," Hopper wrote.
With approximately 1,000 employees and eight manufacturing centers, Genmar is one of the world's largest builders of recreational and fishing boats. Genmar manufactures and markets boats under several brands including Carver, Champion, FinCraft, Four Winns, Glastron, Hydra-Sports, Larson, MarquisTM, Ranger, Seaswirl, Stratos, Triumph and Wellcraft. Genmar boats are sold worldwide through a network of over 1000 dealers
Not covered in the stalking-horse bid are Genmar boat brands Carver, Marquis, Seaswirl, FinCraft, Hydra-Sports, Javelin and a patented manufacturing technology held by Irwin Jacobs, a partner and former Genmar CEO.
Jacobs, who reportedly holds a 40 percent stake in privately-held Genmar Holdings Inc., told a major boat trade publication on Monday that he will be a bidder for Genmar assets and that his bid will be broader in scope — to include more Genmar assets — than the staking-horse bid
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2011 Bennington 2075 GLi
2012 Key West 211 DC
2005 Four winns 180 Horizon LE
1997 Horizon QXsold
2000 248 Vistasold
2002 Key West 2020WA sold
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