Polaris Industries has signed a definitive agreement to acquire Boat Holdings in an all-cash transaction valued at a net present value (NPV) of approximately $805 million. Polaris also expects that approximately $100 million NPV of future net tax benefits will accrue to the combined company.
The transaction is expected to close in the third quarter of 2018 and is subject to customary closing conditions.
Boat Holdings is one of the largest manufacturers of pontoon boats in the U.S., one of the largest and fastest growing segments in the marine industry. Boat Holdings’ four recognized brands are Bennington, Godfrey, Hurricane, and Rinker. Boat Holdings leverages an asset-light manufacturing model, and offers boats through a network of dealers primarily in the U.S. and Canada.
In 2017, Boat Holdings generated approximately $560 million in sales.
“This transaction epitomizes our disciplined growth strategy of entering attractive markets where we can establish and extend our leadership position. In addition to market share leadership, Boat Holdings expands Polaris’ footprint in the recreational outdoors market, commanding more of consumers’ discretionary spending,” said Scott W. Wine, Polaris chairman and CEO. “With their passion to create premium products and experiences, Boat Holdings is a strong cultural fit with Polaris as well, sharing our commitment to quality, innovation, safety, flexibility and efficiency.”
“As a trailblazer in its own right, Polaris is the perfect partner as we look to drive continued expansion and growth in this attractive segment,” said Steve Vogel, Boat Holdings chairman.
“We look forward to Boat Holdings’ best-in-class management team and skilled and experienced workforce joining the Polaris family,” said Wine. “Together, we believe we can increase shareholder value driven by ongoing innovation and growth, as we further leverage their unique position within the large and growing boating industry.”
