OMC sale to Genmar complete
United States

According to Boating International, Genmar Holdings Inc., through its affiliated investment acquisition arm, JTC Acquisitions, LLC, has completed the purchase of all US-based Outboard Marine Corp. (OMC) boat and trailer manufacturing assets.

The acquisition makes US-based Genmar the world's largest boatbuilding company, producing 18 brands of fiberglass and aluminum boats from 14 manufacturing centers in the United States and Canada.

Genmar paid about US$45 million for the boatbuilding lines as the successful bidder in an auction that was part of the OMC bankruptcy process.

Irwin L. Jacobs, chairman of the privately held Genmar, said that the company would soon be announcing to dealers details of its warranty plan for OMC products.

All Lowe, Seaswirl, Four Winns and Hydra-Sports boats sold in 2000 and ones in dealer inventory will receive warranty coverage by Genmar, said Jacobs.

However, Jacobs added that Stratos/Javelin boats in dealer inventory and those sold in 2000 to consumers would not be covered as the product had recently changed and Genmar couldn't determine what the potential warranty costs would be. Genmar will be providing Stratos/Javelin dealers up to US$1,000 in rebates for each new boat ordered, which Jacobs said could be used by dealers to handle warranty claims.