Bavaria set to Boom with Bain

by Jane Pares on 1 Jul 2007
International Marine Brokers, the New Zealand agents for Bavaria Yachts, welcomes the recent take over of Bavaria Yachtbau by one of the world’s leading private equity investors - Bain Capital GmbH. (According to the Financial Times in London), Bain Capital paid an incredible 1.3 billion Euro - sixteen times reported 2006 earning – for Bavaria Yachts GmbH.

The sheer size of the Bavaria deal is an indicator of the incredible growth potential envisaged by Bain Capital.

Established in 1984, Bain Capital already has active markets worldwide selling marine recreational products such as jet skis and snow mobiles. Their knowledge of the North American market, backed up by an extensive support structure, promises to be exciting news for Bavaria Yachts and its future as one of the world’s largest yacht manufacturers.

Bavaria Yachts management sees the acquisition as extremely beneficial to their company and specifically courted Bain Capital for what they could bring to the future of Bavaria. With assets under management exceeding 35 billion Euro and plans to expand the international dealer network and to open up new attractive markets worldwide, their take over secures the continuation of the culture and manufacturing formulae that has made Bavaria so successful.

Bavaria’s current management team will continue to operate the company, while Mr Winfried Herrmann, the creator of Bavaria Yachts, will withdraw from active management upon completion of the acquisition, staying on the board in an advisory capacity. Having been responsible for the growth of the company since the 80s, Mr Winifred Herrmann can look back with pride on his achievement in building the company to the success that it is today and to the level that sets Bavaria apart from all other marine industry manufacturers. Herrmann can best be described as the Henry Ford of the Yacht Production world.

At International Marine Brokers we believe the time is right for Bavaria Yachts to move on to the next stage with a larger management structure, more world beating designs and an expanded range of products.

As far as the New Zealand market is concerned Bavaria has gone from strength to strength since its establishment in the late 90s. With over 70 yachts in the country and a further 20 expected this year, this good news comes at a time when a strong dollar means that a new Bavaria has never been better value.

We all look forward to being part of an exciting future with the new owners.