Sept. 29, 2003 – Finance Digest
Brunswick Acquires Boat Parts and Accessories Business of Attwood
Brunswick Corporation (NYSE:BC), Lake Forest, Ill, has acquired the marine product business of Attwood Corporation, a leading manufacturer of marine hardware and accessories and a subsidiary of Steelcase Incorporated (NYSE:SCS), for approximately $47.9 million in cash. Lowell, Mich.-based Attwood, with annual sales of approximately $56 million, will be part of the Brunswick Boat Group’s Parts and Accessories business.
“Attwood is among the largest and most respected marine parts manufacturers in North America, which will immediately give us a significant presence in this market,” said George W. Buckley, chairman and chief executive officer of Brunswick Corporation.
“Participating in the boat parts and accessories (P&A) segment achieves a number of strategic objectives. It facilitates our efforts to integrate boat and engine design and engineering. It also enables us to offer a higher level of service to our dealers. In addition, it provides Brunswick a chance to increase sales as well as an attractive profit opportunity for Brunswick and our dealers as after-market P&A traditionally offers higher-margins.”
The move is a key element in the company’s goal of building a dedicated boat P&A business, said Dustan E. McCoy, president of the Brunswick Boat Group.
“Attwood is ISO 9001 certified and has solid operations and warehousing systems, including lean manufacturing practices and highly efficient pick-and-ship capabilities. Our plans are to solidify and integrate Attwood’s operations into the Brunswick Boat Group as swiftly and efficiently as possible.” said Randy Gray, vice president and general manager of Brunswick Boat Parts and Accessories.
Carter Bros. Co-Founder Dies
W.W. Carter , founder of Carter Brothers Mfg. Co., Inc., Brundidge, Ala., died Sept. 6, at age 89. Carter Brothers officially opened in 1936 under the leadership of the brothers W.W. Carter and Charlie Carter. The company prospered in the manufacturing of agricultural equipment, lawnmowers, and personal gardening equipment.
During the late 1960s Carter Brothers produced its first go-kart for a growing dealer network. W.W. Carter became sole owner of Carter Brothers Mfg. Co., Inc. in June of 1971, expanding go-kart design and propelling the company toward a future that now includes a 235,000 sq. ft. facility which houses management, sales, engineering, research and development, quality control, manufacturing, assembly, and warehousing.
Ironhorse Sets Dealer Council
Nine dealerships have been named to serve a two-year term on the Dealer Advisory Council (DAC) for American IronHorse Motorcycle Co. (AIH). American IronHorse is a motorcycle manufacturer based in Fort Worth, Texas. The DAC members were selected by a popular vote from more than 50 American IronHorse dealers who participated in the company’s annual DAC voting survey.
DAC members are elected to represent the voices of more than 80 dealerships that sell American IronHorse motorcycles nationwide. The DAC facilitates communication between the manufacturer and dealer network, helping to recommend new policies and programs, representing the business needs of dealerships, and channeling customer service feedback to American IronHorse.
The 2003-2004 DAC officers are: President Don Parkinson, Biker’s Dream of Atlanta; Vice President Nate Jones, Custom Hawg Parts & Accessories; Secretary Tony Sprovero, Eastcoast Ironhorse; and 2nd Secretary Tammy Jones, Custom Hawg Parts & Accessories.
Honda honors Snap On
The Equipment Solutions (EQS) group at Snap-on Incorporated (NYSE: SNA), Kenosha, Wis., was named a recipient of the American Honda 2003 Premier Partner Award for its support of Honda Marine. The award is presented to Honda suppliers that demonstrate excellence in quality, value and customer service.
Snap-on’s EQS group was one of 15 American Honda suppliers selected for the Premier Partner Award from 74 nominated suppliers. EQS provides facilitation services, administering tool and equipment programs for Honda Marine, as well as Honda, Acura, Honda Motorcycle, Honda Power Equipment and Honda’s training centers.
Founded in 1920, Snap-on is a $2 billion, S&P 500 company which employs approximately 12,800 people worldwide.
Pembroke report: Distribution to grow faster than U.S. Economy
U.S. wholesale distribution companies have a bright economic outlook according to a new report by Philadelphia-based Pembroke Consulting and Economy.com for the National Association of Wholesaler-Distributors (NAW) titled NAW 2004 Economic Forecast. (To order, please visit www.nawpubs.org or call 202/872-0885.)
In 2004, overall revenues for wholesaler-distributors across 18 industries are forecast to rise 5.6%, outpacing next year’s projected U.S. GDP growth of 3.8%. Employment in wholesale distribution is slated to rise 1.4%, slightly ahead of the projected national average employment growth of 1.2%.
“Over the last 10 years, the wholesale distribution industry has accounted for one-quarter of the total productivity improvements in the U.S. economy,” said Pembroke Consulting President Adam J. Fein, Ph.D. “Our new report shows further productivity gains ahead for the industry and the U.S. economy as a whole.” (See related story on Parts Unlimited’s distribution operation in the Aftermarket Section on Page 32.)
According to the report, the fastest-growing segments nationwide by revenues next year include electrical, equipment, apparel, and pharmaceutical wholesalers. Wholesaler-distributors in the Southeast, Midwest and Mountain states will see the strongest revenue growth.
Pembroke Consulting (www.PembrokeConsulting.com) develops business and marketing strategies for leading wholesale distribution, manufacturing and B2B technology companies. It has done work in the powersports industry.
Economy.com, Inc. (www.Economy.com) is a leading independent provider of economic, financial, country, and industry research designed to meet the diverse planning and information needs of businesses, governments, and professional investors worldwide.
The National Association of Wholesaler-Distributors (www.NAW.org) is a trade association in Washington, D.C. that represents the wholesale distribution industry. NAW is active in government relations and political action; research and education; and group purchasing.
