Lewmar Marine

DEALS: Lewmar Marine

Lewmar Marine logo

THE DEAL

  • Sector: Industrials and Manufacturing
  • Deal type: Company Sale – Family/Private
  • Deal size: £35.8m
  • Year: 2019
  • Lead partner: Simon Davies

DEAL TEAM

Darren Miller Simon Davies

Spectrum Corporate Finance has advised the Board of Lewmar Marine, based in Havant Hampshire on the successful sale of the company to Lippert Components, Inc. (LCI), the wholly owned subsidiary of LCI Industries.

Founded in 1946, Lewmar is a global leader in the design and manufacture of high quality products and integrated solutions for the international leisure marine industry.

Lewmar designs, manufactures and distributes a wide range of components including anchoring systems, hatch and portlight solutions, powered and manual glazing systems, sail control winches and hardware, docking products and steering systems.

Lewmar is an exceptionally well recognised and trusted brand. Its extensive range of products are typically the products of choice for the world’s leading sailboat and powerboat builders. The strength of the brand also resonates with the end-user sailors and power boaters which provides a substantial aftermarket distribution business.

Spectrum acted as lead corporate finance advisor to the Board throughout a strategic review of options for shareholders and the overall transaction process, including a targeted marketing process to a select number of potential international industry buyers. Lippert Components, Inc. (LCI) was identified as a strong potential strategic partner, with the ability and appetite to capitalise on the future market opportunities available to Lewmar.

With plant locations across North America and Europe, LCI is a global supplier of a highly engineered components for the leading original equipment manufacturers of leisure vehicles and mobile transportation. LCI was largely focussed on the automotive recreational vehicle (RV) sector but with a growing interest in the marine industry. The boards of LCI and Lewmar were quick to recognise that joining forces would create an exciting platform for future growth in the international leisure marine industry and provide opportunities to improve the support provided to customers through further developing the range of products, the manufacturing capabilities and geographic reach of the business.

Lewmar was an unlisted private company with a mix of management, private equity and private individual shareholders. Its shares were previously traded on OFEX and so the transaction was subject to the Takeover Code. The transaction was therefore completed through a rule 2.7 Offer and a Court approved Scheme of Arrangement. Irrevocable acceptances comprising over 80% of the share capital were secured in advance of the deal announcement on 11th June.

Spectrum worked alongside Sebastian Briggs and Leon Miller from Womble Bond Dickinson (UK) LLP, the Company’s legal advisers and Susan Jarram from BDO LLP, the Company’s Rule 3 financial adviser.

“This is an exciting opportunity for Lewmar and represents the best strategic option for the Company and its employees. LCI is an innovative and dynamic organisation that will allow Lewmar to continue to grow its presence in both the European and US markets. The Spectrum team proved to be agile in their stewardship of the process and were solution-oriented throughout. Their research, knowledge and support through the process was of critical importance to the Management team. Having an experienced team at our side through what was a complex, international transaction was highly valued and enabled the Management team to move forward confidently." Peter Tierney, Managing Director of Lewmar
“Lewmar has led the global marine component market for many years and has built its reputation as a leading designer of solutions for its customers, demonstrating its excellence in technical and complex engineering solutions, manufactured in the UK. We were delighted to secure them as a client and worked with the Board and Management Team over a number of years to achieve the optimum timing and solution for the shareholders. We are sure that the business will continue to prosper under the new ownership.” Simon Davies, Managing Director, Spectrum Corporate Finance
“We were delighted to be appointed to advise the Management Team and Board through this important deal for the 300+ shareholders who have supported the business over many years. Lewmar is an important and high profile business locally in the Solent region. It has established a global reputation for excellence in design and manufacturing and has developed a client list which includes all of the world’s leading sailboat and powerboat OEMs and aftermarket distributors. The nature of the transaction led to a number of complexities and challenges and it was therefore particularly satisfying to work alongside other local advisers in bringing the deal to such a successful completion.” Darren Miller, Director, Spectrum Corporate Finance