Genmar Auctioned Off...
 

Platinum Equity buys majority of Genmar
Posted on January 08, 2010


California-based Platinum Equity has purchased "essentially all the
assets" of Genmar Holdings for $70 million, chief restructuring officer
Mark Sheffert confirmed to Soundings Trade Only.

Genmar founder Irwin Jacobs, who along with a partner purchased the
Carver and Marquis brands, said he still hopes to own additional brands
Platinum Equity purchased, but were not part of the group's original bid.

Platinum purchased a total of 11 brands, Sheffert said. These include:
Ranger, Stratos, Champion, Wellcraft, Four Winns, Larson, Glastron and
others.

Carver and Marquis were purchased for $6.05 million by J & D
Acquisitions, LLC, which is a company created by Jacobs, along with John
Paul DeJoria.

MCBC Hydra Boats, a subsidiary of Wayzata Investment Partners, purchased
HydraSports for $1 million, Sheffert said.

Genmar filed for Chapter 11 bankruptcy protection June 1. Jacobs had
originally intended to reorganize his company, but last fall changed
direction to a sale of its assets.

"We are pleased with the results of the auction process and look forward
to bringing closure to this transaction so that the businesses can
refocus their energies and resources on sales and service without the
inherent distractions of being in bankruptcy," Sheffert said.

A spokesperson for Platinum Equity could not immediately be reached for
comment.

All of the acquisitions are subject to bankruptcy court approval. A
hearing is set for Wednesday.

Jacobs told Soundings Trade Only he was "euphoric" about the outcome of
the auction and felt the companies were in good hands. He also said he
plans to purchase certain assets back from Platinum Equity after the
court hearing, including the Larson brand and its factory, Fincraft,
Triumph and Seaswirl.

"I told [Platinum Equity] there were certain things I was interested in
that I know they had no interest in, but they purchased them to get the
thing done, and it is our intention to sit down in good faith when they
get done in court securing the court's approval for everything," Jacobs
said.

"They will negotiate with me in good faith and sell me these assets so I
can keep these factories open, and they've assured me that they will
deal fairly with me, and [they] appreciate the way that I've dealt with
them," he added.

The auction, which was held over two days, was managed by Houlihan Lokey
Howard & Zukin Capital Inc., which signed an agreement in November with
stalking horse bidder Project Boat Holdings, an affiliate of Platinum
Equity.