Seawind buys Corsair and bolsters global network

by Jeni Bone on 8 Nov 2010 Perhaps the biggest news in the marine industry in terms of mergers and acquisitions, Seawind Catamarans has bought Corsair Marine, forging a multihull behemoth that will cover all continents and raise the profile of both brands. In this exclusive interview, Sales & Marketing manager for Seawind, Brent Vaughan, explains the reasons, the benefits for both brands and what international customers can expect.

According to Brent, the process was complicated and took many months. 'These things are generally drawn out, particularly when it involves buying an international company.'

The purchase came about because of 'tough times in the boating industry', acknowledges Brent. 'We will bring the financial, management and strategic strength to the brand.'

Seawind is euphoric about the purchase, says Brent, and the company is looking forward to the cost-savings in all aspects of the business that comes from amalgamating costs and assets, from which both brands will benefit.

'They are very compatible,' he says, adding that global customers will not notice any difference to the brands and both will be maintained. While the synergies are there, Seawind and Corsair appeal to very different markets, Brent says. 'Corsair produces production multihulls at the performance end of the spectrum. They are trailerable, a sporting, camping boat, and a lot of fun. Saying that, the 37 is a good cruising boat too.'

Originally a US company, founded in San Diego in 1985 by the John Walton, the son of Sam Walton, founder of the retail giant, WalMart.

In 1994, John Walton sold Corsair Marine to Paul Koch who was the then Australian Dealer for Corsair Marine. In addition to the Corsair dealership, Koch owned a boat building company called OSTAC.

Koch moved across to California and recruited the trimaran designer, Ian Farrier who had worked previously for Corsair Marine under John Walton. Farrier left the company in 2000 to pursue his own business interests. Corsair Marine purchased all rights to his trimaran designs and subsequently, the branding was changed from the 'F-' series to the 'C' series. By way of example, the 'F-31' trimaran became the 'C31' or 'Corsair 31' trimaran.

In 2006 Corsair Marine took the strategic decision to relocate its Head Office and production facility from San Diego to Ho Chi Minh City (HCMC), Vietnam. In the USA, margins had been under increasing pressure due to escalating costs and a market that was unwilling to pay higher prices.

Moving off-shore created an opportunity to avoid charging higher prices. Ultimately, Vietnam was chosen for a number of reasons including its political stability, attractive FDI (foreign direct investment) provisions, booming economy and its young, talented, skilled, energetic, and resourceful labour pool.

A number of key staff from California relocated to Vietnam to facilitate the successful migration of the business and the setting up and running of the factory. Now, Corsair Marine employs more than 100 Vietnamese.

Since 1984, Corsair Marine has sold more than 1,600 trimarans through its global dealership network. Dealers represent and service Corsair Marine's trimarans in over eight regions of the USA and 17 other locations worldwide.
According to Brent, there has always been a close connection between the brands. 'Of course we are at boat shows near each other, but we have been in business for around the same number of years and known key people from Corsair over that time.'

For Seawind, the cost savings will be significant. 'We will be able to work together on boat shows, sharing the costs there, as well as advertising, media, production and ordering for componentary and materials.'

Corsair will continue to be manufactured in Vietnam, with Seawind sending several personnel to the country 'to lend their expertise, supervise quality as well as other aspects of production', says Brent.

Seawind production will not be moved offshore, says Brent. 'We don’t see that as being part of the picture for the time being. We have just spent $1.2m on a 30,000²ft production shed last year at Wollongong. That is a major investment.'

For now, Brent says the Seawind team will wait until the dust settles before making any moves on the Corsair dealer network. 'In the medium to long term, of course, Corsair’s international dealer network is something that is very attractive to us. They have around 12 in the US, the same in Europe, a handful in Asia and one in Australia. It will be very useful for Seawind to have a presence in those markets already established.'

More at www.corsairmarine.com and www.seawindcats.com