Nimbus Group has signed an agreement to acquire all of the shares in the American company EdgeWater Power Boats for a cash consideration of USD 9.5 million on a cash and debt free basis. The acquisition is financed with equity and the Company intends to carry out a directed share issue of up to 1,937,781 shares. The acquisition of Edgewater is expected to close during the second quarter of 2023. In light of the acquisition and the intended directed share issue, the Board of Directors of Nimbus Group has also decided to withdraw the previous proposal for a dividend.
EdgeWater was founded in 1992 with the purpose of designing and manufacturing robust, safe and reliable powerboats under the premium brand EdgeWater. EdgeWater sells boats to the North American market and sold in 2022 more than 300 boats in sizes of up to 37 feet. The boats are mainly saltwater boats, of the centre console type, which are used for pleasure, fishing and transport. All boats are equipped with outboard motors. EdgeWater has approximately 165 employees with an experienced management team and had sales of approximately USD 47.7 million in 2022 , had an adjusted EBIT of approximately USD 3.0 million , and had an adjusted EBIT margin of approximately 6.3% .
The cash consideration amounts to USD 9.5 million on a cash and debt free basis, corresponding to approximately SEK 100 million. Synergy effects are expected to arise through a stronger market position, access to production capacity in the US and through more efficient logistics, which is also positive from a sustainability perspective. The acquisition includes an industrial property which, as of February 2023, is valued at approximately USD 3.5 million . The acquisition is financed with equity and the Company intends to carry out a directed share issue of up to 1,937,781 shares. The Company will announce a press release with more information about the intended directed share issue. EdgeWater will become a part of Nimbus Group’s American organisation. The acquisition of EdgeWater is expected to close during the second quarter of 2023 and is subject to customary terms. EdgeWater is expected to be consolidated into Nimbus Group’s accounts from the closing date.
”Through the development of new boat models, global expansion, densification of the dealership network and acquisitions, we have delivered on our clear growth strategy. In that strategy, an expansion in the important North American market is one of the cornerstones. The acquisition of EdgeWater adds a strong and successful brand to our portfolio, expands our presence in the North American market and adds an important local organisation with production capacity in the US”, says Jan-Erik Lindström, President and CEO of Nimbus Group.
The market for powerboats in the US is the single largest in the world and to support Nimbus Group’s expansion in the US, the Company has made large investments in recent years. In 2022, the Company established its own local organisation at the same time as the Company announced the establishment of its new US sales office and headquarters in Annapolis, Maryland, located on the east coast of the US. The investments have led to Nimbus Group doubling its number of locations in the North American market in 2022.
Source: Nimbus Group