So Polaris is buying Bennington?

Vikingstaff

Well-Known Member
Messages
2,077
Reaction score
2,795
Location
Michigan
I always get worried in any sort of buy out or merger. I’ll try to reserve judgement, and hope it pans out for the positive.
 

goldnrod24

Moderator
Messages
2,681
Reaction score
1,695

Vikingstaff

Well-Known Member
Messages
2,077
Reaction score
2,795
Location
Michigan

Bamaman

Well-Known Member
Messages
1,336
Reaction score
271
Location
Florence, AL--Tennessee River
The boat business is not the ATV/UTV business. Hopefully Polaris will make changes for the good and otherwise leave Bennington alone. I cannot imagine how complicated building pontoons/tritoons with 4 models of boats with who knows how many different toon lengths and 4 brands of outboards. Parts coordination with over 100 seating and fencing configurations must be a nightmare. But Bennington has executed their company like none other.

On the other hand, Polaris' Huntsville factory is relatively new, and it's already produced over 1,000,000 units. They're doing something right.
 

Pittsburgh

Commodore
Messages
1,590
Reaction score
974
Location
Metro Pittsburgh
Saw this when it first came out
Always thought Bennington would be a stand alone company
In todays corporate world there are no guarantees
Keeping Optimistic and Hoping For The Best

Polaris buys the biggest maker of pontoon boats for $805 million
In its largest acquisition, the company buys Boat Holdings, the nation's biggest maker of pontoons.
By Evan Ramstad Star Tribune

MAY 31, 2018 — 7:19AM

POLARIS
Polaris is buying Boat Holdings, the maker of Bennington pontoons, a model shown here. The $805 million deal is the largest by value that Polaris has made.
http://www.startribune.com/polaris-enters-the-boat-industry-with-805-million-purchase-of-boat-holdings/484060761/#comments


GLEN STUBBE
Polaris is jumping into the boat industry with the $805 million purchase of Boat Holdings LLC.



He said that Boat Holdings, owned and led by its founder Steve Vogel and his son Jake, had made innovations in pontoons that were similar to the strides Polaris has made in a fast-growing segment of two-passenger off-road vehicles called side-by-sides. “They did it on the water and we did it on dirt,” Wine said.


Boat Holdings, which had $560 million in revenue last year, will boost Polaris’ annual sales about 10 percent and add 1,100 employees to its current count of around 11,000. Polaris executives said Boat Holdings will be profitable almost from the start.


Jake Vogel, who has had day-to-day control as chief executive, will continue to lead Boat Holdings as an independent unit of Polaris with its base remaining in Elkhart, Ind. He will report to Bob Mack, president of Polaris’ global adjacent business unit. Steve Vogel will become a consultant to Polaris reporting to Wine. The company has two manufacturing plants in Elkhart and another in Syracuse, Ind.


In an interview, Mack said Polaris has been exploring deals in the marine business for several years, with executives viewing it as a natural extension of the firm’s reach in outdoor recreation.


“We always felt it was a logical place for us to be,” Mack said. “We never really made boats or anything on water on this kind of scale.”


Boat Holdings was just one of several companies that Polaris executives had studied in recent years. In March, a representative reached out to Polaris on behalf of Boat Holdings and the two firms began talking seriously, Mack said.


Boat Holdings’ operating structure appealed to Polaris because its relies on manufacturing to customer orders and maintains a very low inventory of finished goods at its factories and with dealers. For two winters, Polaris has grappled with inventory buildup in its snowmobile business.


“This model of making product for dealers and customers vs. creating an inventory is the direction we’re going with Polaris broadly,” Mack said, noting that it’s a difficult change to make because of the high production volumes of Polaris’ off-road vehicles and snowmobiles.


Low inventories create flexibility for manufacturers to cope with sudden changes in economic conditions and consumer demand, Mack added. “We wanted to make sure that if we were going to get into [marine] that we got in with a model that would do well in good times and bad times,” he said.


The Vogels three years ago added to their core Bennington line with acquisitions that brought in the Godfrey, Hurricane and Rinker brands of pontoon, deck and cruiser boats. Wine said he admired the Vogels’ approach to acquisitions but added that Polaris does not plan to become an expansive player in boating.


“We are not looking to roll up the boat industry by any stretch of the imagination,” Wine said. “We feel really good about the team, about the Vogels. If the right opportunity presented itself, we may move. We’re really happy with where we’re starting. We’re going to learn and grow from that. I would not expect us to add to this segment anytime soon.”


Polaris said it expects $100 million in future tax benefits from the combined company and placed the adjusted value of the deal at $705 million. Adjusted for the tax impact, Polaris is paying about 9.5 times the value of Boat Holdings’ 2017 earnings before taxes and other expenses. “We are buying a large and growing, profitable business in the $8 billion boat segment for a very reasonable multiple,” Wine said.


Polaris shares fell 1.5 percent Wednesday on a day when broad-market indexes rose about 1 percent.
 
Top