Malibu Boats, Inc. Acquires Cobalt Boats, LLC
Malibu Boats, Inc. (NASDAQ: MBUU) announced today that it has entered into a definitive agreement to acquire Cobalt Boats, LLC (“Cobalt”), a privately held, leading manufacturer and distributor of premium sterndrive and outboard boats for an aggregate purchase price of $130 million. For the last 12 months ended March 31, 2017, Cobalt generated approximately $140 million in net sales indicating a valuation metric equal to 93% of trailing 12-month revenue.
Founded in 1968, Cobalt is the market leader in the mid to large-sized sterndrive boat market and their recent expansion into the surf and outboard markets provides further opportunities for Cobalt to reach additional customers. Cobalt manufactures and sells water sport boats, cruisers, bowriders and outboard boats for cruising, skiing, entertainment, surfing, fishing and other recreational uses on lakes, rivers, intercoastal waterways and oceans. Cobalt is a world class brand with a product portfolio of twenty-four models across six proprietary, industry-leading series. Cobalt sells its boats through a well-established dealer network of 132 locations in the United States, Canada, and overseas.
The transaction makes a lot of sense for both companies. The acquisition combines two premium, best-in-class recreational boating brands, further strengthening Malibu’s leading position in the powerboat industry. Cobalt’s comprehensive portfolio of quality products also provides Malibu greater scale and a more balanced portfolio. Last, Cobalt’s complementary distribution network allows for more market opportunities across multiple segments within the recreational boating industry.
