Brunswick selling off Sea Ray brand

Discussion in 'General Discussion' started by KnotEasy, Dec 5, 2017.

  1. cwiert

    cwiert Member SILVER Sponsor

    445
    May 7, 2008
    Westbrook, CT
    1998 400 Sedan Bridge
    CAT 3116 - 350HP
    Good article. Thanks for sharing. I found it interesting that the Brunswick spokesperson said that they've had "good inbound interest from a number of potential buyers..." Who knows what that means for sure, but sounds like things are moving in the right direction for the Sea Ray brand to live on. That's a good thing.
     
  2. TonyQSC500

    TonyQSC500 New Member

    4
    Jan 7, 2018
    2007 44 sundancer. White hull with black stripe and canvas.
    Cummins QSC 500’s V-drives.
    I heard a rumor that Marine Max was trying to buy Sea Ray. I don’t know how I feel about MM buying them.
     
  3. fwebster

    fwebster Well-Known Member TECHNICAL Contributor PLATINUM Sponsor

    Oct 6, 2006
    Middle Tennessee ; Panama City Beach, FL
    1996 450DA
    3116 Caterpillars
    Stranger things have happened, but if you look at the published financials for MM, they are already heavily debt laden and acquiring Sea Ray would be like an ant eating an elephant. Additionally, consider the effect on MM's non-Brunswick brands when their largest dealer all of a sudden becomes a competitor.

    Perhaps with a partner, but as a stand alone purchase, this doesn't seem plausible to me.
     
  4. highslice

    highslice Active Member

    Mar 28, 2008
    Table Rock Lake, Hollister Missouri
    270 SLX
    496 Mag
    Bravo III
    Corsa

    J & D Acquisitions/Larsen Boat Group would make some sense. But who knows, there could be VCs putting a fund together right now for the sole purpose of buying Sea Ray. Pretty good brand to start a portfolio with....My $.02 and that's about what it's worth...
     
  5. FootballFan

    FootballFan Well-Known Member GOLD Sponsor

    Jun 20, 2012
    Florida
    Marquis 59
    MTU Series 60
    I still think Marquis....

    Just sayin.
     
  6. Buckeye Boater

    Buckeye Boater Member

    667
    Jun 19, 2007
    Wooster, OH
    215 Weekender 2006
    Merc 5.0 MPI 260 HP
    Hmmmm........ would that mean Rob Parmentier would then become President of Sea Ray again?
     
    trebbel likes this.
  7. MonacoMike

    MonacoMike Active Member SILVER Sponsor

    Sep 15, 2009
    Indiana lakes and Lake Michigan
    97 270DA 5k Kohler A/C,
    85 Monaco 197
    7.4 300hp BII,
    260hp Alpha 1
    Too funny!!!

    MM
     
  8. The Bill Collector

    The Bill Collector Well-Known Member SILVER Sponsor

    Jun 2, 2008
    Tacoma, WA
    450 Sundancer
    3126 Cat's
  9. KnotEasy

    KnotEasy Member

    238
    May 14, 2013
    Whitehall, Mi.
    205 Sport
    5.0L MPI
    Big money loss for SR, but due to that, a "bargain" to buy SR now.
     
  10. fwebster

    fwebster Well-Known Member TECHNICAL Contributor PLATINUM Sponsor

    Oct 6, 2006
    Middle Tennessee ; Panama City Beach, FL
    1996 450DA
    3116 Caterpillars
    A lot of that loss is estimated and includes intangibles like "losses on discontinued operations", which is one reason Brunswick has elected to sell the brand……i.e. a bucket to sweep every expense possible into for tax reasons.
     
  11. FootballFan

    FootballFan Well-Known Member GOLD Sponsor

    Jun 20, 2012
    Florida
    Marquis 59
    MTU Series 60
    And in these types of situations the broom can be very large. Clean up time for stuff hanging around on the books.
     
  12. rcknecht

    rcknecht Active Member

    Mar 23, 2009
    toms river,nj
    340 Sundancer 2001
    T 454 MPI
    Might be cheaper to buy the company than to buy a 65 Fly.... We should throw in a buck and see if they will take our offer...
     
  13. Carbo

    Carbo Member

    159
    Nov 15, 2011
    AZ
    2014 48Cantius
    Volvo Penta D6 IPS
    I attended the San Diego Boat Show last week. Sun Country Marine has the distribution rights to SeaRay in that region. They had on hand the following: a 400 Dancer, a L510, L550, L590 and an L650. Seems to me that whomever buys SeaRay they should take a look at consolidating their lineup. Too many boats, too much overhead and as mentioned earlier, demographics and lower industry sales volume working against them.
     
  14. electricaldoctor

    electricaldoctor Active Member TECHNICAL Contributor PLATINUM Sponsor

    May 14, 2008
    Thousand Islands, Rockport, Ontario.
    1988 390 EC
    454 Mercruiser Gassers
    I was considering a used L-650 Express this spring, but I'm having second thoughts. How are warranty issues, etc. going to be handled?
     
  15. fwebster

    fwebster Well-Known Member TECHNICAL Contributor PLATINUM Sponsor

    Oct 6, 2006
    Middle Tennessee ; Panama City Beach, FL
    1996 450DA
    3116 Caterpillars
    This appears to be going to be a business acquisition, not a liquidation. The buyer will assume liabilities and warranty exposure is a liability. Sea Ray builds a substantial amount in to their cost sheets for anticipated warranty costs, so there is no reason to abandon buyers. In fact, doing so will be substantially detrimental to the brand. which is what the acquiring company is really buying.

    I think your biggest risk is the dealer you are going to buy from….will they support you and treat you properly? If you buy a used boat, consider where you are going to get it serviced, Sea Ray will advise you on any warranty items you have problems with. They are treating L class customers extremely well, up to and including taking the boats back to the factory for repairs at their cost when such a repair is warranted.
     
  16. electricaldoctor

    electricaldoctor Active Member TECHNICAL Contributor PLATINUM Sponsor

    May 14, 2008
    Thousand Islands, Rockport, Ontario.
    1988 390 EC
    454 Mercruiser Gassers
    Thank you for your insights Frank. We have a few months before we will be pulling the trigger, so we will wait & see which way the wind is blowing with the Sea Ray business aquisition. My loyalty is with Sea Ray, but decisions can be budget driven & a major purchase such as this is no different. We are in the process of melting down some assets to afford the yacht of our dreams in our retirement. The price point for a new Sea Ray yacht is beyond our budget, so we are currently looking at a few used L-650 Express listings. There is no rush and hopefully the selection will widen when the time comes to take the plunge.
     
  17. sailquik

    sailquik New Member

    13
    Apr 11, 2017
    L550 Fly
    Cat C12.9
    I've had from new: Bertram, Sea Ray (a 480DB in 2001), Hydra Sport, Nautique, Intrepid and just took delivery of a new L-Class Sea Ray. Sea Ray service is the best of the bunch. I wouldn't worry about warranty issues, at least not in the next few years.
     
  18. mobocracy

    mobocracy Member

    204
    Jun 29, 2014
    United States
    310 Sundancer
    350 Mag & Bravo III
    My googling indicates an L650 runs nearly $2 million -- this puts you in the league with some of those yachts you see in on the pages of Power & Motor Yacht -- how does Sea Ray compare to Sunseeker or other similar yachts?
     
  19. sailquik

    sailquik New Member

    13
    Apr 11, 2017
    L550 Fly
    Cat C12.9
    My short list had Ferretti and Sunseeker on it. I think quality wise, all three are at the same level. Price wise, they're at the same level once you get to negotiating a purchase. So my decision was for Sea Ray because of the maintenance and service aspect. Factory is local, so you will get factory personnel if the issue is beyond the dealer level and parts are local. I didn't get a great vibe when I saw European electrical parts and thought about how I'd source them locally. I believe the Europeans were lighter which can be positive or negative based on your POV. I had a bunch of special stuff done on my boat which would have been unlikely on a European build and I went to the factory twice and had three sea trials, which again, would have been unlikely with a European boat.

    Having said that, if Marine Max buys the brand, I will be unlikely to stay on as a customer.
     
  20. mobocracy

    mobocracy Member

    204
    Jun 29, 2014
    United States
    310 Sundancer
    350 Mag & Bravo III
    It's an interesting problem to have choosing among those brands. It looks like so many are made in Europe or in Asia these days that the list of boats with an actual made in a America pedigree -- especially in that true, 50+ yacht category -- is pretty small.

    With regard to boats of this type, how often are there needed corrections in actual factory produced components like hull and deck and other structural elements, and how much of it is aftermarket gear like engines, propping, house & marine electronics? I didn't think about the European component selection in electronics, either, that could be a real devil to deal with even if it was bog-standard (which isn't really on a boat) 120V electrical stuff.
     

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