Nimbus Group Buys EdgeWater Boats for $9.5m
In an agreement signed yesterday, Nimbus Group acquired all of the shares in EdgeWater Power Boats for a cash consideration of US$9.5m on a cash and debt-free basis, corresponding to approximately SEK 100m. The acquisition is financed with equity and the company intends to carry out a directed share issue of up to 1,937,781 shares.
The Nimbus orderbook in North America increased to SEK190m (approx US$18m) at the end of 2022, up 108% from the previous year, and growing rapidly through a quick buildup of its distribution network in the US and Canada adding more than 20 new dealer locations recently across the region, now totalling 39.
EdgeWater Power Boats
Founded in 1992 in Edgewater, Florida, EdgeWater Powerboats manufactures and sells boats to the North American market – mostly center console saltwater boats used for pleasure, fishing and transport. The company builds 15 models ranging from 15’ to 37’ (4.57 -11.27 m). All models are equipped with outboard motors.
In 2022 EdgeWater sold more than 300 boats of up to 37ft in length. The company employs around 165 people and reported sales last year of approximately US$47.7m, an adjusted EBIT of approximately US$3.0m, and an adjusted EBIT margin of approximately 6.3%.
Justin Joyner Sparks Growth
Last summer Justin Joyner joined Nimbus and opened the company’s U.S. headquarters in Annapolis, MD, as vice president of Nimbus Boats USA, LLC. From 2013 Joyner served as powerboat manager for Beneteau in North America. Past responsibilities with Group Beneteau included dealer network development, new product development, product marketing strategy, product launches, yacht sales, yacht training, pricing strategy and sales program implementation. Joyner is the first vice president of the Nimbus Group in North America tasked with implementing the Nimbus Group strategy and its North American operations.
HMY Becomes a Major Nimbus Dealer
A growing portion of the group’s gains in 2022 were underpinned by expansion of its distribution footprint in North America where it doubled dealer locations to a total of 39. In January, 2023, Nimbus Group announced that Florida-based yacht dealership, HMY Yacht Sales will sell the Nimbus brand of boats along the eastern coast of Florida, across 11 locations from the Florida Keys to the Florida-Georgia state line.
On America’s east Atlantic coast, Clarks Landing Yacht Sales has been named the sole distributor for Nimbus boats in the state of New Jersey. CenterPointe Yacht Services will represent Nimbus in Wisconsin and Illinois, and Milltown Yacht Sales will provide distribution in Vancouver, British Columbia.
“These new dealerships offer a unique expertise in their respective markets, and we are thrilled to work with such knowledgeable industry professionals who have a long history to back their capabilities,” said Nimbus Boats USA Vice President Justin Joyner. ”Each dealer has boats to show and sell for their upcoming season because we all felt strongly that these boats will resonate within these strategic markets.”
With four locations along Lake Michigan, CenterPointe Yacht Services is a family-owned and operated yachting business offering Midwest boaters a full suite of services including sales, storage, maintenance, and marina dockage. The addition of Nimbus, brings to both Wisconsin and Illinois a uniquely built boat that will allow users to extend their boating season in a climate very similar to Nimbus’ very own. The first Nimbus boats will arrive mid-May.
Becoming a Major Player in the U.S.
According to Nimbus, synergy effects are expected to arise through a stronger market position, access to production capacity in the US, and through more efficient logistics, which is also positive from a sustainability perspective. The acquisition includes an industrial property which, as of February 2023, is valued at approximately US$3.5m.
“Through the development of new boat models, global expansion, densification of the dealership network and acquisitions, we have delivered on our clear growth strategy,” says Nimbus Group president and CEO Jan-Erik Lindström in a statement. “In that strategy, an expansion in the important North American market is one of the cornerstones. The acquisition of EdgeWater adds a strong and successful brand to our portfolio, expands our presence in the North American market and adds an important local organization with production capacity in the US.”
U.S. is the World’s Largest Boat Market
The market for powerboats in the US is the single largest in the world, says Nimbus, and to support its expansion in the US, the company has made large investments in recent years. In 2022, Nimbus established its own local organization at the same time as the company announced the establishment of its new US sales office and headquarters in Annapolis, Maryland. The investments have led to Nimbus Group doubling its number of locations in the North American market in 2022.
Sweden’s Nimbus Group, also is the builder of the Alukin, Aquador, Bella, Falcon, Flipper, Nimbus and Paragon Yachts brands. The acquisition of EdgeWater is expected to close during the second quarter of 2023.