New Ownership for Luxury Yacht Manufacturer Fairline: Details of the Recent Sale to New Investors Unveiled
Fairline Yachts Acquired by Bronzewood Capital
Private equity firm, Bronzewood Capital, a division of turnaround specialist Buchler Phillips, has announced the acquisition of luxury yacht manufacturer, Fairline. The deal will secure the brand's future and maintain its status as a British-based boat manufacturer, with the majority of the workforce continuing to produce boats at the Oundle factory.
The takeover includes all brand assets and tooling but does not extend to the factory or Fairline Yachts' outstanding liabilities. Instead, the current landlord will continue to lease the factory. The new holding company, Fairline Holdco Limited, has been registered at Companies House, with the business operating under the name Fairline moving forward.
Bronzewood specializes in investing in distressed businesses with a turnover between £5m and £50m. The firm is headed by David Buchler, a founding partner of Buchler Phillips, who is an experienced marine industry executive and avid boat owner. He has also been a long-term director-investor in Ventura Yachts, the distributor for Ferretti Group brands in the UK and Spain.
Buchler expressed confidence in Fairline's future, stating, "Fairline is one of the great brands. Customers can have confidence that the business is properly funded, and we're now moving forward positively into the future." The full range of Fairline boats will continue to be built at Oundle by the current workforce while Bronzewood assesses the business's operations over the next six months.
Background and Plans for Fairline Yachts
The acquisition follows Fairline's administration in January, with DF Capital, a bank providing cashflow finance to the company, calling in administrators after fears that the new owners, Arrowbolt Propulsion Systems, lacked the necessary funding to keep the business running. Peter Hamlyn, a former COO of Oyster Yachts, was brought in to manage the day-to-day running of the business until new investors could be found.
Pricing adjustments have already been made under Bronzewood's ownership, with boat prices increasing by 6% after the usual January price rise was postponed due to administration. Dealers have also been asked to accept a reduced margin as part of a drive to restore the business to profitability.
The luxury yacht market is experiencing significant growth, with a CAGR of 8.3%, creating an opportunity for Fairline Yachts to expand and capitalize on the increased demand for high-end vessels globally. With the acquisition, Bronzewood Capital aims to boost Fairline Yachts' growth and stability by implementing strategic plans to enhance the company's product lines, manufacturing capabilities, and market presence.
Sources
- Buchler Phillips. (n.d.). Buchler Phillips. Retrieved January 15, 2023, from https://www.buchler-phillips.com/
- Motor Boat & Yachting. (n.d.). Motor Boat & Yachting - Motor Boat & Yachting. Retrieved January 15, 2023, from https://www.motorboatandyachting.co.uk/
- Companies House. (n.d.). Companies House. Retrieved January 15, 2023, from https://www.companieshouse.gov.uk/
- marketandmarkets.com. (2021). Luxury Yacht Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026). Retrieved January 15, 2023, from https://www.marketandmarkets.com/PressReleases/luxury-yacht-market.asp
- Heesen Yachts. (2021). Heesen Yachts sells 60% stake in ICON Yachts to Origine Investments. Retrieved January 15, 2023, from https://www.heesen.com/en/news/heesen-yachts-sells-60-stake-in-icon-yachts-to-origine-investments/
- Sunseeker International. (2018). Sunseeker International approved for equity investment from Chinese consortium. Retrieved January 15, 2023, from https://www.sunseeker.com/news/sunseeker-international-approved-for-equity-investment-from-chinese-consortium/
- The luxury yacht manufacturer, Fairline, has been acquired by private equity firm Bronzewood Capital, with the intention to enhance its product lines and increase its market presence.
- Bronzewood Capital, a firm that specializes in investing in distressed businesses with a turnover between £5m and £50m, will boost Fairline's growth and stability through strategic plans and financial support.
- David Buchler, an experienced marine industry executive and avid boat owner, heads Bronzewood and seeks to maintain Fairline's British-based manufacturing status while capitalizing on the increasing global demand for high-end vessels.
- Following the acquisition, Fairline Yachts will continue to produce boats at the Oundle factory under the new holding company, Fairline Holdco Limited, while assessing the business's operations to restore it to profitability. The maritime industry and finance business await the positive impact of this sports cruiser and flybridge yacht manufacturer's revitalization on the industry.
