Polaris Industries Inc. entered into a definitive agreement to acquire Indiana-based boat manufacturer Boat Holdings LLC for a net present value of about $805 million in cash.
The transaction is anticipated to be valued at about $705 million after adjustment of net tax benefit of $100 million, which will result from the merger. Boat Holdings is owned by the Vogel family, management and private equity firm Balmoral Funds LLC.
After closing of the deal, expected in the third quarter, Boat Holdings will function as a distinct business unit reporting to Bob Mack, president of global adjacent markets and senior vice president of corporate development and strategy at Polaris.
Boat Holdings, which generated approximately $560 million in sales in 2017, is the largest manufacturer of pontoon boats in the U.S. and its 2017 EBITDA multiple, including the expected net tax benefits, is about 9.5x, Polaris said May 30.
The transaction will provide Polaris an opportunity to expand the company's footprint of outdoor product offerings and establish its position in the fast-growing powerboat category.
For Polaris, Goldman Sachs & Co. LLC acted as financial adviser and Simpson Thacher & Bartlett LLP served as legal counsel.
Boat Holdings engaged Stephens Inc. as financial adviser and Jones Day as its legal adviser.
