June 29, 2018 / 2:12 PM / 6 months ago

Boat maker Brunswick to buy Power Products' unit for $910 million

(Reuters) - Boat maker Brunswick Corp (BC.N) said on Friday it would buy the global marine and mobile business of Power Products LLC for $910 million in cash, adding 11 brands including wire and cable supplier Ancor and ProMariner battery chargers for boats.

Brunswick said it would merge the unit, which raked in revenue of about $233 million for the year ended March 31, into its largest division, Mercury Marine, that makes marine parts and accessories.

Mettawa, Illinois-based Brunswick has been focusing on its boats and engines business, while trying to offload non-core operations.

The company, which houses brands such as Boston Whaler, Bayliner and Lund, said in March it would spin off its fitness equipment unit into a publicly traded company.

However, its move to find a buyer for its Sea Ray yacht-making unit was unsuccessful, forcing the company to wind down parts of the business.

Brunswick said it would use a combination of debt and cash on its balance sheet to fund the acquisition, which is expected to close in the third quarter.

Power Products is owned by San Francisco-based private equity firm Genstar Capital.

Morgan Stanley & Co LLC served as exclusive financial adviser to Brunswick, with Morgan Stanley Senior Funding Inc providing committed financing.

Shares of Brunswick were down 1 percent at $62.15 in early trading on Friday.

Reporting by Aishwarya Venugopal in Bengaluru; Editing by Anil D'Silva

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