Crownline looking for buyer/investor

[NCLakeboater]

The tough times in the boating industry claimed another as Crownline is looking for a buyer or investor to stay in business.

WEST FRANKFORT, Ill. ? Crownline Boats is seeking a buyer or investor to provide capital that will allow it to continue to operate in "an environment with reduced demand from consumers and dealers," the company said in a note to its partners.

The company has already taken aggressive steps to cut costs, including temporarily shutting down production in mid-December, according to the note, which was signed by Crownline President and CEO David Fisher.

These cost-cutting steps have had a positive impact, Fisher wrote, but the company will still need to pursue a sale or investment. Crownline has retained an investment bank to identify and engage candidates who might be interested in acquiring the Crownline brand and its manufacturing capabilities.

The note thanked Crownline's vendors for their support and asked for their continued cooperation.

"We firmly believe that ? if we can work together effectively ? Crownline will soon be back up and running and our partners will retain an important customer," it stated.

The note also suggested Crownline will continue to support its dealers' sales efforts, stating, "We are very much open and ready to take your orders."

http://www.boating-industry.com/output.cfm?ID=2028637

 

[RotaryRacer]

Re: Crownline looking for buyer/investor

It sounds like they are out right asking Brunswick to buy them. Brunswick as a whole is probably the largest supplier (partner) to many boat companies. Crownline is exclusively Mercruiser at this point.

It is too bad that Crownline is faced with this. However, I'll bet that as an independent company they will have more options to explore than a manufacturer that is owned by a conglomerate.

 

[tmh]

Re: Crownline looking for buyer/investor

Truth is, there are way too many companies making very similar boats for the market to support - even a normal market. Crownline, 4 Winns, Searay, Monterey, Maxum, and about 8 or 10 others make boats in the same class and VERY similar. yeah, a few design differences, but same power options in the I/O (mercruiser or V/P) all chevy engines, guages, controls, all about the same. very few have much of a niche an more - just all fighting for the same middle-level consumer.

What does the Crownline brand stand for in this business? I read several boating mags. and look at several forums, etc. I couldn't tell you WHAT they do different. they're boats look as generic as any out there, IMO. they throw some "neat" graphics on the side of some - big deal. Quality!?!?!? "In the mix" is about where they rate with most. Stingray - Fast hull, fairly low priced, speed, efficiency for the buck. THAT'S a unique place in the market. Not that it's the best boat for all, or even most, but it has an identity.

I wish they all could stay in business - but I also wish some had some more inovation and uniqueness. Heck, I see the 4 Winns SL boats getting rave reviews as being such an inovation (and they are compared t most) - they basically widened te hull but don't call it a 'deck boat". WOW, genius. My kids knew day one of boating that boats need a wider deck so they and some friends can sit up there together in a boat less than 24'!

Inovate, or it really doesn't matter to the consumer if you're around or not. Ask GM how useful it is to have many models almost the same with different brand names on them. Doesn't work long-term.

 

[jacknbella]

Re: Crownline looking for buyer/investor

I completely agree with TMH. We bought our Four Winns back in November but spent months trying to find differences between all brands but nothing really stood out. I hate to say this, but, buying a car is so much easier because makes and models are significantly different from one another so the experience is much-less stressful and much faster. Sure, price plays a huge factor when buying large items but why would anyone want to pay Lexus prices for a Ford Focus (OK, that was a stretch, but you get the idea)? Since most boats look the same and most come with similar options, the only thing that matters is the price. If you can find a desperate dealer who is willing to sell a Lexus at a Ford price, buy the Lexus!!! That's how we ended up with a Four Winns!!! Best of luck folks!!!

 

[RotaryRacer]

Re: Crownline looking for buyer/investor

Heck, I see the 4 Winns SL boats getting rave reviews as being such an inovation (and they are compared t most)

They really are different than anything on the market. I was at the boat show here the other night. The SL boats really are impressive. They have three models/lengths now. Useable space, style, build quality etc. all seemed to be one notch up of the comparable boats (price/size). Even the FourWinns "deck" boats at the same size/price point didn't have quite the same look/feel that really set the SL boats apart.

At the boat show I tried to somewhat objectively rank the brands that were represented. I limited my looking to the 19-20' bowrider segment and also the 22-24' "deck" boat segment. I looked at design/layouts/build quality. I would say they land something like this:

1. Cobalt
2. Four Winns
3. Crownline
4. Monterey
5. Regal
6. Larson
7. Azure
8. Glastron
9. Tahoe
10. SeaRay

That list of different makes alone makes it clear that there are too many brands for this market. They each offered and had displayed a boat in the market(s) that I was looking at.

The smaller SeaRays were completely unimpressive. As the sales guy said as I was peeking into the nooks and crannys "the Sport series are built to a price point". Well, I wouldn't buy a SeaRay in the 18-20' bowrider range.

 

[KCook]

Re: Crownline looking for buyer/investor

In my view where Crownline stands out from the pack is in style and finish. Unfortunately for Crownline, the other hounds in the pack are not exactly ugly ducklings. Crownline's margin in style and finish ahead of Four Winns, Larson, Monterey, and Regal is a thin one. Likely too thin to overcome any business difficulties. Too bad, I like lots of choices.

Kelly

 

[NCLakeboater]

Re: Crownline looking for buyer/investor

I hope they make through this tough economic time but I think we'll see consolidation of the boating industry in any event with fewer brands a year from now. Azure although new is similar in design to Crownline with some outboard model boats in addition to I/O models. Azure is lucky to be backed by the financial strength of Bennington. Crownline is owned by investment bankers who in these difficult times are less likely to want to invest additional funds to ride it out, thus they are looking for outside investors or a buyer to absorb them.

 

[BMWboatski]

Re: Crownline looking for buyer/investor

This message couldn't have caught my eye at a better time. Im about to purchase my first boat and have found 2 that I love. One was a crownline and the other a four winns H200. Got to lean towards the fourwinns now.

 

[5150abf]

Re: Crownline looking for buyer/investor

We saw the same thing on the pontoon side, when we started Bennington (1997) there were 20-30 manufaturers and as the market picked up in late 90s- early 2000s that number swelled to over 50.

So for the market the herd needed to be thinned and I would be suprised if by this time next year there were more than 15 active makers still operating.

I really hate to see anyone go under because, like us, there are real people with families behind those companies but, from a buisness perspective, only the strong survive and when this breaks they will be doing better than ever.

Azure, as part of Bennington, will be back eventually but the market for those was hit especially hard.

I hope they find an investor to help them out but that offer is on the table with alot of companies so I don't know, I would eb pretty shokced if Brunswick picked them up, they hav eenough corpses laying around already I think.

 

[tmh]

Re: Crownline looking for buyer/investor

5150abf, just curioius, what's your involvement at bennington. if i can ask? Did I read your response correctly that you are involved in that company? Thx.

 

[5150abf]

Re: Crownline looking for buyer/investor

I am a supervisor in the weld shop.

I was actually the 5th person to join the company back in 1997.

It has been an interesting ride so far seeing us go from a start up to being the largest pontoon maker in only 11 years.

Then this latest fiasco with the economy, a year and a half ago we were making 28 boats a day and working every other Saturday, now we have been off since the last week of January but we go back tommoro, for awhile at least.

I am sure we will make it, we are in really good shape considering and with so many of the other makers going out of buisness our market share should really pick up as things start moving again.

 

[ondarvr]

Re: Crownline looking for buyer/investor

This message couldn't have caught my eye at a better time. Im about to purchase my first boat and have found 2 that I love. One was a crownline and the other a four winns H200. Got to lean towards the fourwinns now.

I'm not sure why you would eliminate the Crownline, even if they went out of business it would have no effect on anything to do with owning one of their boats.

I only have a couple customers still building boats and even those have shut down for weeks at a time, others have said they will not build boats until further notice. With so few boats being made the different companies have gotten together and will build all the different brands at one plant, this still only amounts to 1 boat per day and sometimes only 4 days per week. Some of these accounts were building 6+ boats a day before the slow down.

 

[NCLakeboater]

Re: Crownline looking for buyer/investor

I'm not sure why you would eliminate the Crownline, even if they went out of business it would have no effect on anything to do with owning one of their boats.

I only have a couple customers still building boats and even those have shut down for weeks at a time, others have said they will not build boats until further notice. With so few boats being made the different companies have gotten together and will build all the different brands at one plant, this still only amounts to 1 boat per day and sometimes only 4 days per week. Some of these accounts were building 6+ boats a day before the slow down.

What companies aren't building boats until further notice?

 

[ondarvr]

Re: Crownline looking for buyer/investor

Unless those companies supply that information in a press release I can't really name them in a public forum.

 

[NCLakeboater]

Re: Crownline looking for buyer/investor

Unless those companies supply that information in a press release I can't really name them in a public forum.

I understand thanks.

 

[5150abf]

Re: Crownline looking for buyer/investor

I heard today they have a new owner, unfotunately it is the bank, their facilities have been padlocked.

I also heard that Bentley has also been locked out.

It is very sad, not alot of good news out there for boat makers.

 

[OldePharte]

Re: Crownline looking for buyer/investor

It doesn't help that some companies doing the floor plans have stopped their financing.

A couple of dealers that I know are only ordering 1 or 2 models, waiting to see what the traffic will be. I have also talked to a couple of our "local" pontoon manufacturers and they are holding on and plan on weathering the storm, so to speak. At least that what they said in their e-mails.

Hopefully, I'll be selling my deckboat next week, so I can buy a new 'toon. My little way to help the local economy.

 

[RotaryRacer]

Re: Crownline looking for buyer/investor

Update:

http://www.thesouthern.com/articles/2009/02/27/breaking_news/doc49a89941bb1a7595680716.txt