U.K. equity firm buys Oyster Marine

by Susan A. Baird (http://www.pbn.com/) on 20 Feb 2008 Oyster Marine Ltd., a U.K.-based yacht builder with shipyards in Ipswich and Newport, has been acquired by U.K.-based private equity fund Balmoral Capital for an undisclosed sum.

“I will be staying on as chairman and CEO, and it will be business as usual for Oyster’s staff,” founder Richard Matthews said in announcing the sale. “We will maintain our ongoing commitment to providing great service for our owners and continuity to the ‘family’ of key subcontractors who are such an important part of our future.”

“As investors, we are delighted with the acquisition of Oyster and have every confidence in the existing management team to take the business forward,” said Balmoral managing partner Richard Winckles. The equity firm already owns Canados, the Italian maker of 70-foot to 110-foot fly-bridge and sports motor yachts.

Besides the Oyster Marine offices in Ipswich, and its Newport Shipyard at One Washington St., the transaction includes the associated businesses of Oyster Brokerage and Southampton Yacht Services, the companies said. The deal has been in the works since “the end of last year – around October,” when Balmoral approached Oyster, Liz Whitman, Oyster’s director of public relations and marketing, said in an e-mail interview today.

“Business as usual means just that,” Whitman said, when asked to elaborate upon Matthews’ statement. “Balmoral are looking to Oyster’s existing management team and staff to run the business in the same way that we have been, which has proved very successful over the last 34 years.”

Oyster Marine was founded in 1973 as a designer and builder of cruiser racers. Today, it is best known for its comfortable live-aboard cruising yachts, many of which have circumnavigated the world. The company’s vessels, currently starting at 46 feet, feature a distinctive “deck saloon” configuration. But racing remains a part of the tradition, with Oyster yachts placing as winners in their class in both the Fastnet and the Sydney Hobart races in 2007.

Oyster Marine employs about four people in Newport and 85 in Ipswich, Whitman said. Another six are employed at the company’s Oyster Brokerage, also in Ipswich, and 140 at Southampton Yacht Services, which she said “not only builds the larger Oyster yachts but also has a very substantial build and refit operation for superyachts.”

Oyster eschews agents, selling its vessels directly to customers around the world, Whitman noted. “From Newport, we look after our growing band of USA-based customers and have brokerage, charter and, most importantly, after-sales personnel on hand to service those customers,” she said. The Newport staff also assists Oyster owners visiting from abroad – “and, or course, they are also responsible for organizing Oyster’s presence at the USA Newport, Annapolis, Miami and Fort Lauderdale boat shows.”

The company reports having had a “very active London Boat show, with enquiries substantially ahead of last year for new yachts and for the expanding fleet of Oysters available for charter.” It already is booking orders for the Oyster 100 and 125 superyachts, slated for launch in 2010 and 2011.

“All divisions of Oyster Marine can expect to be as busy as ever,” in the wake of the acquisition, Whitman said. “And we are looking to expand production where possible.”

For more information about Oyster Marine Ltd., its vessels and its services, visit www.oystermarine.com. Balmoral Capital, founded by Richard Winckles and Alec D’Janoeff, is a private equity company specialising in controlling investments in mid-market European companies with growth potential. Businesses acquired by Balmoral typically have an enterprise value of 30 million to 350 million euros. To learn more, visit www.balmoralcapital.com.