ELKHART — Polaris Industries of Minneapolis, Minnesota, will spend $805 million to acquire Boat Holdings LLC, headquartered in Elkhart.
Boat Holdings was founded by Steve Vogel, and is a boat manufacturer owned by the Vogel family, management and Balmoral Funds, according to information from Polaris.
The purchase was a cash deal.
According to a statement by Polaris, Boat Holdings will continue to operate is manufacturing and headquarters in Elkhart.
Polaris also expects that approximately $100 million in future net tax benefits will accrue to the combined company. When adjusted for the tax benefit, the transaction is valued at approximately $705 million.
In 2017, Boat Holdings generated approximately $560 million in sales, according to Polaris.
The transaction is expected to close in the third quarter of 2018, according to Polaris.
Boat Holdings is the largest manufacturer of pontoon boats in the United States. The company’s products also include deck and cruiser boats. The company’s brands are Bennington, Godfrey, Hurricane and Rinker.
“Boat Holdings is renowned for innovation and quality and we are excited to have them become part of our portfolio of industry-leading powersports vehicles,” said Polaris Chairman and Chief Executive Officer Scott W. Wine. “This transaction epitomizes our disciplined growth strategy of entering attractive markets where we can establish and extend our leadership position. In addition to market share leadership, Boat Holdings expands Polaris’ footprint in the recreational outdoors market, commanding more of consumers’ discretionary spending. Our product lineup will offer options to be enjoyed on the roads, trails, sand, dirt, snow and water. With their passion to create premium products and experiences, Boat Holdings is a strong cultural fit with Polaris as well, sharing our commitment to quality, innovation, safety, flexibility and efficiency. Further, Boat Holdings’ long-term relationships with its national dealer network speaks to the brand’s strength with both dealers and consumers.”
Boat Holdings Chairman Steve Vogel echoed Wine's positive outlook on the partnership.
“With similar cultures, both businesses share the same passion for product and people, which has driven both our and their long-term success," Vogel said. "As a trailblazer in its own right, Polaris is the perfect partner as we look to drive continued expansion and growth in this attractive segment.”
The U.S. market for new powerboats is an $8 billion market, and pontoon boats are one of the largest and fastest-growing segments within the industry, according to Polaris. Sales in the pontoon boat category have grown at an 11 percent compounded annual growth rate since 2010, while Boat Holdings’ leading pontoon brands, Bennington and Godfrey, have grown at an even faster pace over the same time period.