Fountain Powerboats to Purchase Baja Marine
Apr 8, 2008 | 11:42 PM
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Fountain Powerboats to Purchase Baja Marine Fountain Powerboats signed a letter of intent to purchase the venerable Baja Marine line from the Brunswick Corp., the companies announced Thursday. Terms of the agreement were not disclosed, and completion of the sale is subject to certain conditions.
Brunswick plans to end production of Baja boats in Bucyrus, Ohio, by the end of May, according to the company. The closing of the Baja plant will mean the loss of approximately 285 positions. Brunswick said some of the employees may transfer to Fountain Powerboats or other Brunswick manufacturing facilities.
Reggie M. Fountain, chairman and chief executive officer of Fountain Powerboats, said he started talking with Brunswick about a year ago about possibly purchasing Baja Marine. Negotiations started getting serious at the Miami International Boat Show, Fountain said.
While Baja will be brought under the Fountain corporate structure, Reggie Fountain said both brands are going to be operated as two separate lines with two distinct dealership networks. Fountain says he has no immediate plans to make any changes to the Baja boats.
“We’re going to build them with as much or more quality than they have been,” Fountain said. “We see some things we can do to improve the speed … but right now we don’t need to change anything.”
Fountain is looking at several locations to build the Baja line, including Washington, N.C., but no decision has been made. And Fountain said the company will continue to use Mercury products in both product lines.
The decision to sell the Baja line came as a surprise, but Brunswick had seen a decline in sales among the 19 brands that it owns because of the slowing economy. Brunswick said its boating segment lost $81.7 million in 2007, which included a $66.4 million write down for certain boat brands.
Brunswick estimates the plant closure in Bucyrus along with other associated costs will be between $10 million and $15 million.
“This was a strategic decision to further refine our product portfolio and best focus our resources on brands and marine segments that we believe are core to our success going forward,” said Dustan E. McCoy, Brunswick’s chairman and chief executive officer, in a press release. “This action in no way reflects upon Baja or the abilities and performance of the Bucyrus workforce. We believe, however, that Baja and its dealers will ultimately benefit from being a part of Fountain Powerboats, a company that, like Baja, is a leader in high-performance.”
While both companies were considered competitors, Fountain Powerboats’ stepped-bottom models appealed to consumers looking for maximum speed and performance. Baja Marine, which builds offshore boats up to 40 feet, offered only nonstepped-bottom hulls. They also sell sport boats and runabouts.
Fountain builds fish boats, express cruisers and sport boats. The company’s products range from 33 feet to 48 feet.—Gregg Mansfield
Brunswick plans to end production of Baja boats in Bucyrus, Ohio, by the end of May, according to the company. The closing of the Baja plant will mean the loss of approximately 285 positions. Brunswick said some of the employees may transfer to Fountain Powerboats or other Brunswick manufacturing facilities.
Reggie M. Fountain, chairman and chief executive officer of Fountain Powerboats, said he started talking with Brunswick about a year ago about possibly purchasing Baja Marine. Negotiations started getting serious at the Miami International Boat Show, Fountain said.
While Baja will be brought under the Fountain corporate structure, Reggie Fountain said both brands are going to be operated as two separate lines with two distinct dealership networks. Fountain says he has no immediate plans to make any changes to the Baja boats.
“We’re going to build them with as much or more quality than they have been,” Fountain said. “We see some things we can do to improve the speed … but right now we don’t need to change anything.”
Fountain is looking at several locations to build the Baja line, including Washington, N.C., but no decision has been made. And Fountain said the company will continue to use Mercury products in both product lines.
The decision to sell the Baja line came as a surprise, but Brunswick had seen a decline in sales among the 19 brands that it owns because of the slowing economy. Brunswick said its boating segment lost $81.7 million in 2007, which included a $66.4 million write down for certain boat brands.
Brunswick estimates the plant closure in Bucyrus along with other associated costs will be between $10 million and $15 million.
“This was a strategic decision to further refine our product portfolio and best focus our resources on brands and marine segments that we believe are core to our success going forward,” said Dustan E. McCoy, Brunswick’s chairman and chief executive officer, in a press release. “This action in no way reflects upon Baja or the abilities and performance of the Bucyrus workforce. We believe, however, that Baja and its dealers will ultimately benefit from being a part of Fountain Powerboats, a company that, like Baja, is a leader in high-performance.”
While both companies were considered competitors, Fountain Powerboats’ stepped-bottom models appealed to consumers looking for maximum speed and performance. Baja Marine, which builds offshore boats up to 40 feet, offered only nonstepped-bottom hulls. They also sell sport boats and runabouts.
Fountain builds fish boats, express cruisers and sport boats. The company’s products range from 33 feet to 48 feet.—Gregg Mansfield
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