Sealine
Transaction Background
In June 1998 Graphite Capital backed the £30 million management buy-in of Sealine, one of the UK’s leading manufacturers of luxury motor cruisers. The business was bought from the founders who had set up the company over 25 years earlier.
Deal Attractions
Sealine had a well-established market position and a long record of strong sales growth. The company sold its products in the UK, continental Europe and the United States which mitigated the cyclical nature of the local luxury cruiser markets. The upside was mainly in the expansion of overseas markets.
Achievements
- the new management team added to and updated the product range
- the team successfully changed the business culture from manufacturing-led to sales-led
- sales and operating profit increased by 49 per cent and 31 per cent respectively
- Sealine was repositioned as a leading, up-market producer of boats in Europe
Exit
- the business was sold to a US boat manufacturer, Brunswick, in July 2001
- Brunswick saw the acquisition as an entry to the European market
- the transaction valued Sealine at £49 million
- Graphite’s proceeds represented a multiple of 2.3 times the initial cost and an internal rate of return of 31 per cent
