Brunswick to sell Navman and Northstar

by Rob Kothe on 28 Apr 2006 The US based Brunswick Corporation announced yesterday it intends to sell the core of its Brunswick New Technologies (BNT) business unit including its NZ based Navman unit. This business unit's products are primarily based on GPS technologies and sold in the portable consumer navigation, fleet tracking, and automotive and marine markets and it seems the explosive growth in this sector has triggered the sale prospects.

In 2002, Brunswick acquired Northstar Technologies, Inc., a world leader in premium marine navigation electronics. Established in 1970, Northstar is among the premier suppliers of marine navigational systems, fully integrating GPS and advanced chart-plotting capabilities with technologies such as sonar and radar.

In 2003 Brunswick also purchased a 70 percent interest in Navman, the New Zealand-based maker of marine navigation and global positioning system (GPS)-based products. Started in 1986 by Peter Maire as Talon Technology, out of his Auckland (New Zealand) garage.

That garage-based enterprise grew to become an original design manufacturer (ODM), adding chart plotters and fish-finders to the range of boating instruments, such as wind and depth gauges.

In 2004 Brunswick purchased the remainder of Navman.

'This business unit has experienced exceptional growth under Brunswick's ownership over the past few years -- especially in the portable land-based navigation segment,' said Brunswick Chairman and Chief Executive Officer Dustan E. McCoy.

'As we become increasingly focused on our core business segments, marine, fitness, bowling and billiards. We have determined that continuing to invest in this business unit to fuel growth is not consistent with our long-term strategic objectives.

'We believe that BNT's excellent long-term prospects may be better achieved under different ownership, one that is focused on BNT's technological expertise, to enable it to reach its full potential.'

BNT operations included in the proposed sale consist primarily of the New Zealand based Navman and the Northstar and MX Marine brands.

The company said it would retain MotoTron, which designs and supplies sophisticated engine control and vehicle networking systems, IDS Integrated Dealer Systems, which provides management systems to marine and other dealerships, and technologies and engineering talent related to connectivity

Headquartered in Chicago’s Lake Forest, Brunswick Corporation was foundeed in the 1840's but made tis name in the 10 pin bowling industry in the 1940-1960's

In 1958 it started its moves in the marine sector and in 1960, purchased of Owens Yacht Co. and Larson Boats. A year later, the predecessor to Mercury Marine entered the Brunswick fold. Mercury would become the world’s leading supplier of marine propulsion. In 1986, Brunswick became the undisputed leader in recreational boating when it acquired the world's two largest boat manufacturers, Bayliner Marine Corp. and Sea Ray Industries.

Brunswick’s largest operating segment has a range of leading consumer brands, including Mercury and Mariner outboard engines; Mercury MerCruiser sterndrives and inboard engines; MotorGuide trolling motors; Teignbridge propellers; MotoTron electronic controls; Albemarle, Arvor, Baja, Bayliner, Bermuda, Boston Whaler, Cabo Yachts, Crestliner, HarrisKayot, Hatteras, Lowe, Lund, Maxum, Meridian, Ornvik, Palmetto, Princecraft, Quicksilver, Savage, Sea Boss, Sea Pro, Sea Ray, Sealine, Triton, Trophy, Uttern and Valiant boats; Attwood marine parts and accessories; Land 'N' Sea, Kellogg Marine, and Benrock parts and accessories distributors; IDS dealer management systems.

The company also announced that its board of directors has authorized the repurchase of up to $500 million of the company's outstanding common stock. Share repurchases will be made from time to time in the open market or through privately negotiated transactions, based on market conditions. This authorization supplants the $200 million authorization approved by the board in May 2005, under which the company repurchased approximately 3.6 million shares for approximately $137.8 million. The company currently has approximately 94.5 million shares outstanding.