Polaris Industries, a manufacturer of motorcycles, all-terrain vehicles, and snowmobiles, is entering the marine sector with the acquisition of Boat Holdings, an Indiana-based boat manufacturer, the company announced in a press release.
Polaris acquired Boat Holdings for $805 million in cash. The transaction is expected to close in the third quarter of 2018.
Boat Holdings specializes in manufacturing luxury pontoon, deck, and cruiser boats, with recognized brands such as Bennington, Godfrey, Hurricane, and Rinker. Through its connected network of dealers across the U.S. and Canada, the OEM generated approximately $560 million in sales in 2017.
“In addition to market share leadership, Boat Holdings expands Polaris’ footprint in the recreational outdoors market, commanding more of consumers’ discretionary spending,” Polaris Chairman and Chief Executive Scott Wine said in a press release. “Our product lineup will offer options to be enjoyed on the roads, trails, sand, dirt, snow, and water.”
Upon the closing of the deal, Polaris expects that Boat Holdings and its brands will boost its overall growth rate. The marine industry is an $8 billion market and sales in the pontoon boat category have grown at an 11% compounded annual growth rate since 2010.
Additionally, the demographics of powersports and marine consumers share some similarities, with 30% of Polaris consumers owning a boat. Polaris expects that cross-selling opportunities will help increase sales.
Boat Holdings will maintain its headquarters and manufacturing facilities in Elkhart, Indiana and will operate as a business unit under Bob Mack, president of global adjacent markets and senior vice president of corporate development and strategy at Polaris.