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Fountain Powerboat Industries on the block
by Demitri Diakantonis
Updated 05:28 PM EDT, Jun-11-2009
Washington, N.C., sport boat manufacturer Fountain Powerboat Industries Inc. announced Thursday that it had hired middle-market investment bank Jacobs Capital LLC to explore strategic alternatives.
The company said in a statement it would "seek a partner that can provide additional capital to the company to support its operations during the present economic downturn and to help finance future growth."
Michael Jacobs, who founded the Raleigh, N.C., advisory firm in 1998, is leading the auction along with Denise Holt. Jacobs declined to discuss specifics of the process.
"The boating industry is going through a huge recession right now," he said.
"The present market for boating is not immune to the same forces impacting the auto industry and the overall economy," Fountain Powerboat Industries CEO Reggie Fountain added in a statement.
Fountain started the company in 1979 with eight employees and has since expanded to a staff of around 400. The company makes and sells sport boats through 47 dealerships worldwide.
Calls to the company were not immediately returned.
In September, Gregory & Associates LLC issued a distressed warning on the company, citing operating losses. Fountain reported an operating loss of about $2.8 million for the fourth quarter ended Dec. 31, compared with a loss of $447,000 in the same quarter of 2007. It reported $5.8 million in net sales for that same quarter, compared with nearly $15 million in net sales from a year before.
Fountain had long-term debt of $16.3 million as of Dec. 31. Regions Bank holds its credit facility.
In March 2008, the company acquired Baja Marine Corp. from Brunswick Corp. for undisclosed terms.
There have been other recent deals in the space. On June 3, Nautic Global Group acquired Crownline Boats Inc. for undisclosed terms. Crownline shut down operations last December, but they are expected to resume production this month.
According to its Web site, Jacobs Capital handles transactions between $10 million and $100 million to companies with under $100 million in revenue. It focuses on a wide range of industries including newspapers, restaurants and healthcare.
by Demitri Diakantonis
Updated 05:28 PM EDT, Jun-11-2009
Washington, N.C., sport boat manufacturer Fountain Powerboat Industries Inc. announced Thursday that it had hired middle-market investment bank Jacobs Capital LLC to explore strategic alternatives.
The company said in a statement it would "seek a partner that can provide additional capital to the company to support its operations during the present economic downturn and to help finance future growth."
Michael Jacobs, who founded the Raleigh, N.C., advisory firm in 1998, is leading the auction along with Denise Holt. Jacobs declined to discuss specifics of the process.
"The boating industry is going through a huge recession right now," he said.
"The present market for boating is not immune to the same forces impacting the auto industry and the overall economy," Fountain Powerboat Industries CEO Reggie Fountain added in a statement.
Fountain started the company in 1979 with eight employees and has since expanded to a staff of around 400. The company makes and sells sport boats through 47 dealerships worldwide.
Calls to the company were not immediately returned.
In September, Gregory & Associates LLC issued a distressed warning on the company, citing operating losses. Fountain reported an operating loss of about $2.8 million for the fourth quarter ended Dec. 31, compared with a loss of $447,000 in the same quarter of 2007. It reported $5.8 million in net sales for that same quarter, compared with nearly $15 million in net sales from a year before.
Fountain had long-term debt of $16.3 million as of Dec. 31. Regions Bank holds its credit facility.
In March 2008, the company acquired Baja Marine Corp. from Brunswick Corp. for undisclosed terms.
There have been other recent deals in the space. On June 3, Nautic Global Group acquired Crownline Boats Inc. for undisclosed terms. Crownline shut down operations last December, but they are expected to resume production this month.
According to its Web site, Jacobs Capital handles transactions between $10 million and $100 million to companies with under $100 million in revenue. It focuses on a wide range of industries including newspapers, restaurants and healthcare.
