Malibu Boats, Inc. · NASDAQ:MBUU
Malibu Boats — Merger or Acquisition (June 2017)
14 slides from Malibu Boats's merger presentation, June 2017
Slide 1: Acquisition of Cobalt Boats, LLC
Malibu Boats, Inc. Acquisition of Cobalt Boats, LLC June 2017
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation includes forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Forward-looking statements can be identified by such words and phrases as “believes,” “anticipates,” “expects,” “intends,” “estimates,”
Slide 3: Agenda
Agenda • Transaction Overview and Rationale • Cobalt Boats Overview • Financial Summary • Closing Comments 3
Slide 4: Transaction Overview and Rationale
Transaction Overview and Rationale
Slide 5: Transaction Overview
Transaction Overview • Acquiring Cobalt Boats, LLC (“Cobalt”); expect early July 2017 close • Market leading manufacturer of premium water sport boats, cruisers, bowriders and outboard boats • ~$140 million in sales (LTM March 31, 2017) • $130 million purchase price; including estimated $18 million
Slide 6: Transaction Rationale
Transaction Rationale • Unique opportunity to acquire an industry leader of meaningful size ATTRACTIVE • World class brand known for exceptional quality for 50 years TARGET • Some Whitespace growth opportunities • Strengthens MBUU position in overall powerboat industry • Opportunities for operationa
Slide 7: Cobalt Boats Overview
Cobalt Boats Overview 7
Slide 8: Business Overview
Business Overview Business Summary Sales by Series FY161 • Founded in 1968 by the St. Clair family • Comprehensive product portfolio Entry − Six series with 24 models ranging from 20’ – 40’ Sterndrive • Retail prices range from ~$50k to ~$700k − ~$80k average price Premium Watersports • Dealer netwo
Slide 9: World Class Brand with Growth Potential
World Class Brand with Growth Potential Strong Core Business Significant Growth Opportunities Outboard Entry Sterndrive Premium Sterndrive Watersports Pontoon Series 9
Slide 10: Leading & Defensible Market Position with a Globally Recognized Brand
Leading & Defensible Market Position with a Globally Recognized Brand • Cobalt is the market leader in large sterndrive boats with a market share of 29.5% in 24’-29’ length segment • Top distribution with a large percentage of dealers with #1 or #2 market share • Strong brand and market penetration
Slide 11: Financial Summary
Financial Summary 11
Slide 12: Financial Summary
Financial Summary PURCHASE PRICE • $130 million purchase price, subject to certain adjustments • Attractive purchase price multiple and significant estimated tax benefits EARNINGS / • Accretive to EPS in FY2018, excluding purchase accounting/acquisition costs MARGINS AND • Significant margin expansi
Slide 13: Closing Comments
Closing Comments
Slide 14: Closing Comments
Closing Comments • Acquisition of significant scale and opportunity • World class, market leading brand with significant growth opportunities • Consistent with our stated strategic approach to acquisitions • Enhanced diversity in distribution and product offering • Similar business model allows us t