More Hatteras/Cabo News

[LIBERTY]

New Bern Boat Building Company Confirms Buy-Out In The Works

Posted: Thu 6:57 AM, Jul 25, 2013

A company that has systematically been cutting back on it's New Bern workforce says a plan is in the works for a formal buy-out.

According to the New Bern Sun Journal, Hatters/CABO Yachts in New Bern will be bought by Navis HCY Acquisition.

President and CEO of Hatteras, John Ward, told the paper Navis was buying Hatteras.

According to reports, Ward said, "The deal is not finalized. We are still in the process of negotiating a deal."

The paper reports Hatteras' vice president sent the City of New Bern a request to have the electric service agreement transferred to Navis and the request was approved by the Board of Alderman at Tuesday night's meeting.

In June, the company said it would be letting go of 25% of it's workforce at the plant on Glenburnie Road.

In January, Hatteras said 105 workers were laid off from the boat building company; 75 of those jobs were full-time positions.

Brunswick Corporation said the move in January was to adjust to market conditions as the company was looking to invest more resources in its Sea Ray and Meridian brands.





Find this article at:
http://www.witn.com/home/headlines/...Out-In-The-Works-216899101.html?device=tablet

 

[Artzco]

The link below is the parent company of Navis HCY and lists the companies they own. Versa is a private equity firm that invests in distressed companies.

http://en.wikipedia.org/wiki/Versa_Capital_Management

 

[jim rosenthal]

Oh, just great. A VC that invests in distressed companies? Pardon me while I groan. I hope this has a good outcome. I hope someone in the firm that is buying Hatteras/Cabo knows something about boats.

 

[MicroKap]

Here's the article that was put out in today's Soundings Trades publication.

Brunswick near deal to sell Hatteras and Cabo

Posted on 25 July 2013


After six months looking for a buyer, Hatteras and Cabo Yachts appear to be nearing a sales agreement.

Brunswick Corp. plans to sell the Hatteras and Cabo brands to Navis HCY Acquisition LLC, according to a letter sent from Hatteras and Cabo vice president and CFO Robert Nenni to city officials in New Bern, N.C.

“I am pleased to inform you that within the next few weeks we intend to enter into an Asset Purchase Agreement whereby we will sell Hatteras and Cabo Yacht businesses to Navis HCY Acquisition, an affiliate of Versa Capital Management, LLC ... which is a Philadelphia-based private equity firm,” Nenni said in the letter obtained by Trade Only Today.

The letter was sent as part of a request that city officials reassign electric power to the new owners, effective upon the transaction’s closing. The sale of Hatteras requires that the electric service agreement for providing power be assigned to the new owners for the remainder of the term of the agreement, according to the resolution.

The board of aldermen voted unanimously Tuesday to approve the request, New Bern city clerk Veronica Mattocks told Trade Only.

Brunswick and Hatteras officials did not immediately return calls seeking comment. Hatteras president and CEO John Ward confirmed to the (North Carolina) Sun Journal that the companies were reaching a deal with Navis, but told the paper: “The deal is not finalized. We are still in the process of negotiating a deal.”

“The formal response from Versa right now is no comment,” Rivian Bell, who is with The Abernathy MacGregor Group Inc., the public relations firm handling Versa Capital, told Trade Only today.

Versa’s portfolio includes Polartec, Bob’s Stores, a Northeastern apparel retailer and outdoor chain Eastern Mountain Sports, to name a few. The company looks for investment opportunities in North American-based businesses with revenue in the $50 million to $1 billion range or assets of $25 million to $500 million, according to the website.

With $1.2 billion of assets under management, the firm is focused on control investments in distressed and special situations involving North American middle-market companies where value and performance growth can be achieved through enhanced operational and financial management, the website said.

— Reagan Haynes

 

[Ross Macdonald]

Great....REMF's taking over one the most storied boat building companies in the world. It's a sad day.

 

[jim rosenthal]

Wish I could be more optimistic about this. The only one of their other firms I know anything about is Polartec, which has a good rep, or did. If I am thinking of the right company. in any event, I wish them well, and among other things hope they see fit to continue to support Sam's and this forum.

Being a boat enthusiast doesn't make me any more knowledgeable about boats than the next guy. But over many months of reading posts here makes me think that Hatteras needs to have a more recognizable brand and look for its yachts, a small line of boats which are very well-developed and easy to own and maintain, and technology updates that make the boats more efficient in their use of fuel and as simple to own as possible. I am curious as to what you all think on this topic.

Perhaps with a PE firm behind them, they will be able to regain the position at the top of the market that they held for so long. I hope so. I bought a Hatteras over twenty years ago- it may not have been love at first sight, but it sure is love now. She has been very good to me and I have a great deal of respect for the company and the craftsmen and women who designed her and brought her into the world. I would like to think that generations to come will be able to have an experience similar to mine- buying an older boat that is so well made that she has at least one additional life left in her, maybe more than one.

 

[Ross Macdonald]

Well said Jim. Eloquently and succinctly stated. Ross

 

[magnawake]

The old Hatteras lines are hard to mistake. I cant tell what kind of boat I see these days. They all look the same. If you think about it, cars are the same way. Years back you could tell a long way off what kind of car was coming down the road. Ford, Chevy, dodge, they all had thier own trade marks. Look at the 1960 cadillac with the fins. Some people liked them, some didnt, but without too much debate it was a Caddy. I know they still hold their value if kept in good condition. Individualialty means alot to me. The big flare bow of a sportfish (Buddy Davis etc) is catching on like wildfire. Now they all seem to have they big flare. They all look the same. But thats only looks. What about management. The CEO's knowadays only care about cutting cost and making a buck. In todays world market they are competing with Asian boats using under paid workers. Hatteras prolly has workers with 10-20 yrs experience making Approx. $20/hr. I bet all Hatteras managers are knocking down the big bucks as the company goes belly up. Its a shame. I'm getting of the subject, but it just shows Hatteras is not leaders in the industry, they are followers, just trying to look like everyone else.

 

[captddis]

Fast forward 3 years, the ad in Soundings real estate section will read '" Get in on pre construction pricing of the newest condominium complex with deeded slips on the Neuce River"

 

[Freeebird]

Fast forward 3 years, the ad in Soundings real estate section will read '" Get in on pre construction pricing of the newest condominium complex with deeded slips on the Neuce River"

Yep.

It's pretty obvious that the majority of folks on this forum are fans of the older boats, and I may catch hell for saying this, but seeing Hatteras go belly up for the last time isn't really going to change anything other than not being able to call up Hatteras and get a serial number on an engine that was installed into a boat they built 40 years ago. I seriously doubt these new owners will carry on that particular tradition of customer service.

Chevrolet is not going to bring back the '55 Bel Air, and this new company is not going to build a boat that looks like... a Hatteras.

 

[Pascal]

They shouldn't build boats that look like what they used to build in the 60s or 70s but as an early leader in the small MY market and having brought forward a number of major design innovation in the past, they are expected to lead and not to follow.

The results speak for themselves... Look at marinas in south Florida and they are full of late models ferretti s, mutts, fairlines, princess, seekers and even a few Laz. Here in the grove, out of probably 50 to 60 2000 and up 45 to 90' boats I can count the number of hatteras badges on the finger of one hand...

I I was part of the tin foil hat club, I'd say that Brunswick bought Hatteras to drive it into the ground and eliminate one of their competitors...

I dont think this buyer can do more harm than Brunswick did...

 

[fissioneng]

other than not being able to call up Hatteras and get a serial number on an engine that was installed into a boat they built 40 years ago. I seriously doubt these new owners will carry on that particular tradition of customer service.

Maybe SAM's can get a hold of all of the vintage info., drawings, data, etc. I can't imagine the new owners caring about that and I hope it doesn't all get pitched into a dumpster.

 

[Freeebird]

Hatteras is a lot like Harley Davidison in terms of being an icon whose products really don't stack up against the competition in the current market. It's brand loyalty and a signature sound that keeps Harley in business. Maybe the new Hatteras owners need to come up with a really cool sounding exhaust and use rigid motor mounts so the boat vibrates... and bring back the DD 2-strokes that leak oil.

Seriously, the only thing I can see resurrecting Hatteras is being able to offer something different in a market where everything looks the same, and people don't seem to mind. With that, building something lighter, faster, and less expensive seems to be their only option. Maybe they should get the formula for transparent aluminum (Star Trek fans will get that one) and be the pioneer in that field as they were with fiberglass.

 

[fissioneng]

Maybe they should get the formula for transparent aluminum (Star Trek fans will get that one)

I thought that was called Lexan.

 

[Pascal]

I don't think everything looks the same... When you see a mutt or fairline or Ferreti or Laz, you can tell what it is they have some pretty unique styling clue. Not that that I care for the over the top styling of a mutt but like it or not, you don't need to look at the badge to know it says Azimut

Same with a Fleming, marlow (although these two can often be confused), Pershing, sunseeker and many more.

Problem is that for what, 13 years?, hatteras has been owned by Brunswick which is primarily a small / medium cruiser builder and their whole line including hatteras comes out of the same design mold.

 

[Boatsb]

Considering the fact that less than 1 of us online regulars here is looking at buying a new Hatteras I think our opinions are not we weighing heavily on management. We support the old boats. Sams is our friend.

 

[tellico]

Suggestion - Raise hell so that Sam's or someone gets all the archives they can. Power and sail here, but have had several Hunter brand of sailboats. That company ~was~ one of the best ever for customer service, assistance and information on all models from day 1. Much like folks here speak of Hatteras (quasi New Bern native here too.)

During Hunter parent bankruptcy and subsequent sale, the story is that everything did go into a dumpster, as someone mentions above. Our Sams equivalent got some info, but it seems to be little in the overall scheme of things. And the great customer service folks are gone or re-positioned in the new company.

Suggestion - organize protests, sit-ins, whatever you need to do sooner than later!

 

[jim rosenthal]

Interesting comparison with HD, but having ridden and spent a bit of time looking at their modern bikes, I think they have done well- better than anyone expected when years back they had to have Congress or someone pass a law to keep the Japanese builders from eating their lunch....the Motor Company is doing fine, and has a number of imitators like Victory and Indian, which tells you that people think the pie is big enough to maybe grab a bit of HD's market. Not to mention Star and I think some Honda offerings that are vaguely familiar to Harley owners...

I think there's a good lesson there for Hatteras Yachts' new owners, if they are quick enough to see it: how do you get your market back, how do you make something that looks like your vintage product but also new, how do you get out to the head of the pack once you've fallen behind? Harley-Davidson has done it- their modern bikes sound like a Harley, ride like one, etc, and look like one, but they are full of modern tech, they don't leak or strand you by the roadside, and they sell well and have kept the Motor Company alive. Of course, for the price of a Hatteras, you could have a couple of hundred Harleys... literally, I think.

I don't think that the answer is to build boats that look like an older Hatteras and have modern internals in them. The modern internals are essential, but so is a unified new styling theme that perhaps borrows from the old a bit and doesn't look like everyone else's products. And ease of service has to be paramount- if you look at a Marlow, for example, they are made to have everything easily worked on- same with a Nordhavn. A boat that is impossible to fix (and they all need fixing sooner or later) will not be running for long.

Randy, I'm impressed you came up with the analogy to HD. Even if I do ride a Triumph...

 

[Pascal]

Now, this is a pretty good looking hatt!!

http://www.yachtforums.com/forums/h...nical-launch-hatteras-100-rph-motoryacht.html

 

[jim rosenthal]

You're not kidding. Is this one of their new offerings?

If we all got together we might be able to afford the down payment on this. Of course we'd all fight about who got to drive.