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Boating Business

Brunswick Completes Navico Acquisition

Simrad is one of the brands that will now be under the Brunswick umbrella.

Brunswick Corporation has completed its acquisition of Navico, a global leader in marine electronics and sensors for $1.05 billion. With this transaction, Brunswick adds Navico brands 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.

Navico is a provider of multi-function displays, fish finders, autopilots, sonar, radar, and cartography. Navico’s brands serve most major powerboat and sailing markets for both recreational and commercial applications.

Significant Investment

Navico’s revenues totaled approximately $470 million for the trailing 12-month period ended May 31, 2021, with 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 percent 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

B&G is known for its navigation electronics focused on the sailing industry.

Brunswick will be using a combination of debt and cash on its balance sheet to fund the acquisition. Brunswick remains committed to maintaining its investment grade credit rating and at close expects its debt-to-EBITDA ratio to be approximately 1.7x on a gross basis.

“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,” said Dave Foulkes, Brunswick Corporation CEO. “Along with welcoming an accomplished and respected global workforce, we are 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."