Genmar divided up between Platinum Equity and Irwin Jacobs

by Media Services on 12 Jan 2010 The US marine industry now has a private equity firm as its second-largest player. California-based Platinum Equity, has acquired the main share of the company.

Platinum Equity originally submitted a bid of US$55m for a portion of Genmar's assets but has emerged with even more than originally planned. According to reports, it paid US$70m at the bankruptcy auction.
A Platinum Equity spokesman confirmed the sale was complete, but said he couldn't comment on the actual details until the bankruptcy court makes a final ruling.

Former Genmar chairman, Irwin Jacobs said Platinum Equity purchased all the assets except the Carver and Marquis brands, which he acquired separately for US$6m with business partner John Paul DeJoria. A third bidder, MCBC Hydra, acquired Genmar's Hydra-Sport brand for US$1m.

Jacobs said he made an agreement with Platinum Equity to purchase several other Genmar brands and facilities after the deal is approved by the court. 'They said they would be glad to negotiate with me in good faith,' said Jacobs. 'I trust these people. We got to know them over the last three months.'

The former Genmar chief added that he doesn't expect Platinum Equity to shut down any brands.

According to its website, Platinum Equity is the largest private company in the Los Angeles area, and 27th on the 2009 Forbes list of America's largest private companies.

The brands that Platinum Equity will own, following the bankruptcy court's approval, include Four Winns, Ranger, Triumph, Seaswirl, Champion, Stratos, FinCraft, Larson, Wellcraft, and Glastron.

Jacobs intends to purchase the Larson, Fincraft and Seaswirl brands as well as rights to VEC technology and the VEC factory in Little Falls, Minnesota. He also wants to purchase the Triumph brand and its production facility in North Carolina.

Jacobs said his new company, J&D LLC, will not have a corporate structure like Genmar, but he will let the brands and factories manage themselves under a 'profit-loss' system. 'We're going back to the old way of doing business,' he said.

If the US Federal Bankruptcy Court in Minneapolis gives final approval to the assets sale on Wednesday, Genmar will cease to exist as a corporate entity on January 20.