Ray
01-13-2010, 07:41 PM
Hydra-Sports was purchased by people who know and understand the boating business and care passionately about building high-quality, innovative boats. MasterCraft is a leader in its ski/wakeboard market segment, and typically each MasterCraft and Malibu have about 25% market share each in their category. MasterCraft is widely regarded as one of the most innovative builders in the U.S. in any class. For example, several years ago in introduced the first pickle-fork bow boat which has been widely copied. Last year they introduced the 300, which just won the Motor Boating magazine “Boat of the Year Award” in its class. MasterCraft has a SOTA production facility on Lake Tellico, the place where every one of its boats are water-tested before being shipped to its dealer network.
A Tough Year for MasterCraft, Too
2009 was a very tough year for both MasterCraft and Hydra-Sport. Early in the year MasterCraft went into virtual hibernation as the full impact of the Great Recession hit. Unfortunately its parent company was evidently not prepared to see the company through the financial draught. In mid-summer MasterCraft, which stayed in business and pretty much held its market-share position, was recapitalized by Wayzata Investment Partners. Since that time MasterCraft has been back to its old aggressive, innovative, and exciting self.
Hydra-Sports Has Innovation, Too
Hydra-Sport is one of the most innovative builders of center console fishing boats. Its 4100 is one of the largest production center consoles built, and its 3500 VX, (http://www.boattest.com/Resources/view_news.aspx?NewsID=3950#hydra-sports)is one of the most unique boats on the water. We find it interesting that these two companies with such creative and competitive spirits have found each other.
Hydra-Sports personnel along with the rest of the boating industry were shocked last May when Genmar filed for Chapter 11 protection. The company continued operations, but with a reduced staff. Somehow the folks left standing at Hydra-Sports kept building boats and servicing customers and owners, confident that the cache of the brand which had been built up over many years, and the determination of a small cadre of management could see the company through to the other side of Chapter 11.
BoatTEST.com Commends Them
BoatTEST.com has had the pleasure of working with management at both companies during the last trying year. Our hat is off to the folks at both companies who have stayed the course through what has been an economic nightmare for the boating industry. We admire their tenacity in the face of adversity and their unwavering commitment to the people who owned their products, doing the best they could with the resources at hand. Perhaps it was their finest hour.
Reprinted from the January 12, 2010 Boating Industry e-Newsletter--
VONORE, Tenn. – From the moment the assets of Genmar Holdings LLC were put up for sale, MasterCraft had an interest in Hydra-Sports, MasterCraft President John Dorton said in an interview this morning.
“The customers have basically the same demographics,” he explained. “Hydra-Sports buyers just wake up in the morning and pick up a fishing pole instead of a wakeboard.”
That’s why Dorton, through MCBC Hydra Boats LLC, acquired Hydra-Sport for $1 million at the Genmar bankruptcy auction late last week.
Both the wakeboard and saltwater fishing markets have proven to be more stable than your average boating niche because of participants’ passion for their respective sports.
“We don’t sell to boaters so much as wakeboarders and fishermen,” Dorton stated. “Our buyers at MasterCraft consider themselves wakeboarders, not boaters. It’s the same with saltwater fisherman. Their passion for the sport is the extra glue to keep them in it in tough times.”
Nice Production Fit
After economic conditions caused MasterCraft to contract, the company began looking to fill the resulting gap in production with a brand that would complement its core business. Hydra-Sports is just the right fit, giving the company the added stability it was seeking, Dorton suggested. Assuming the court hearing on the Genmar sale, which is scheduled to be held tomorrow, goes smoothly, the sale will close on Jan. 20.
The factory tooling, molds and materials will be moved to Vonore shortly afterward with a goal of beginning production with the new model year, tentatively scheduled for late spring. While Dorton said that MasterCraft intends to invite some of the key Hydra-Sports employees to relocate to Vonore, the increase in production will be filled by MasterCraft employees who were laid off due to the downturn.
Because MasterCraft was at one time a sister company of Boston Whaler, its engineering team has center console experience, particularly Scott Wood, who has spent time at Hinckley, Boston Whaler and Wellcraft.
“He gives us even more confidence we’ll be competitive in this segment,” said Dorton.
A Tough Year for MasterCraft, Too
2009 was a very tough year for both MasterCraft and Hydra-Sport. Early in the year MasterCraft went into virtual hibernation as the full impact of the Great Recession hit. Unfortunately its parent company was evidently not prepared to see the company through the financial draught. In mid-summer MasterCraft, which stayed in business and pretty much held its market-share position, was recapitalized by Wayzata Investment Partners. Since that time MasterCraft has been back to its old aggressive, innovative, and exciting self.
Hydra-Sports Has Innovation, Too
Hydra-Sport is one of the most innovative builders of center console fishing boats. Its 4100 is one of the largest production center consoles built, and its 3500 VX, (http://www.boattest.com/Resources/view_news.aspx?NewsID=3950#hydra-sports)is one of the most unique boats on the water. We find it interesting that these two companies with such creative and competitive spirits have found each other.
Hydra-Sports personnel along with the rest of the boating industry were shocked last May when Genmar filed for Chapter 11 protection. The company continued operations, but with a reduced staff. Somehow the folks left standing at Hydra-Sports kept building boats and servicing customers and owners, confident that the cache of the brand which had been built up over many years, and the determination of a small cadre of management could see the company through to the other side of Chapter 11.
BoatTEST.com Commends Them
BoatTEST.com has had the pleasure of working with management at both companies during the last trying year. Our hat is off to the folks at both companies who have stayed the course through what has been an economic nightmare for the boating industry. We admire their tenacity in the face of adversity and their unwavering commitment to the people who owned their products, doing the best they could with the resources at hand. Perhaps it was their finest hour.
Reprinted from the January 12, 2010 Boating Industry e-Newsletter--
VONORE, Tenn. – From the moment the assets of Genmar Holdings LLC were put up for sale, MasterCraft had an interest in Hydra-Sports, MasterCraft President John Dorton said in an interview this morning.
“The customers have basically the same demographics,” he explained. “Hydra-Sports buyers just wake up in the morning and pick up a fishing pole instead of a wakeboard.”
That’s why Dorton, through MCBC Hydra Boats LLC, acquired Hydra-Sport for $1 million at the Genmar bankruptcy auction late last week.
Both the wakeboard and saltwater fishing markets have proven to be more stable than your average boating niche because of participants’ passion for their respective sports.
“We don’t sell to boaters so much as wakeboarders and fishermen,” Dorton stated. “Our buyers at MasterCraft consider themselves wakeboarders, not boaters. It’s the same with saltwater fisherman. Their passion for the sport is the extra glue to keep them in it in tough times.”
Nice Production Fit
After economic conditions caused MasterCraft to contract, the company began looking to fill the resulting gap in production with a brand that would complement its core business. Hydra-Sports is just the right fit, giving the company the added stability it was seeking, Dorton suggested. Assuming the court hearing on the Genmar sale, which is scheduled to be held tomorrow, goes smoothly, the sale will close on Jan. 20.
The factory tooling, molds and materials will be moved to Vonore shortly afterward with a goal of beginning production with the new model year, tentatively scheduled for late spring. While Dorton said that MasterCraft intends to invite some of the key Hydra-Sports employees to relocate to Vonore, the increase in production will be filled by MasterCraft employees who were laid off due to the downturn.
Because MasterCraft was at one time a sister company of Boston Whaler, its engineering team has center console experience, particularly Scott Wood, who has spent time at Hinckley, Boston Whaler and Wellcraft.
“He gives us even more confidence we’ll be competitive in this segment,” said Dorton.