German-based investment fund takes over yacht-builders Bavaria

A private equity fund advised by the Berlin-based investment company CMP Capital Management-Partners will acquire the entire business of Bavaria Yachtbau, the German-based builder of motorboats, sailboats and catamarans, and continue operations of the company. It will also acquire all shares in its French subsidiary Bavaria Catamarans SAS.

Bavaria fell into administration in April this year, however, was able to strike a temporary deal to maintain operations to fulfil a sizable order book obtained on the back of new model launches in 2017-18.  The insolvency of Bavaria came as numerous management changes in recent years made an inherent strategy difficult. A rise in material cost and overtaxed production as a result of the quick introduction of eight new models had an impact on the company’s liquidity.

All 550 employees of Bavaria Yachtbau in Giebelstadt and all 250 employees of Bavaria Catamarans in Rochefort will be retained and transferred to the purchaser. Since July, the employees have been paid out of the insolvency assets; short-term working arrangements have been applied for the 550 employees until the end of September. Bavaria acquired the French business in 2014, formerly Nautitech Catamarans, to address the thriving catamaran segment.

CMP will acquire Bavaria Yachtbau from Oaktree Capital and Anchorage Capital, which bought the business in October 2009, and the previous owner Bain Capital's write-down of debt facilities totalling about €960m at the time.

While the purchase agreement between Bavaria and CMP has been concluded, the deal still needs to be approved by the Federal Cartel Office, which is expected to come in the next few weeks. The parties have agreed not to disclose the purchase price.

Founded in 2000, CMP Capital Management-Partners is a German investment company that specialises in the acquisition of companies in distress. CMP’s current investment portfolio consists of seven primarily industrial manufacturers, but no consumer-oriented companies. With the investment in a company, CMP employees assume operative management responsibilities on site. In the case of Bavaria, Dr Ralph Kudla, restructuring expert and partner at CMP, will join the executive board.

Kai Brandes, managing director of CMP Capital Management-Partners explained in a press release that: “We are convinced of Bavaria’s global market potential and will sustainably develop the company. The restructuring measures will focus on regaining market share and improving production costs.”

Restructuring expert Dr Tobias Brinkmann has been managing director of Bavaria Yachtbau since insolvency proceedings began. He said: “Bavaria is an outstanding company with a strong brand, compelling products and a highly dedicated team.

“We are pleased to have found a well-known and experienced buyer in CMP who will lead Bavaria into the future”.

The Australian Sailing Team has left the first official Olympic Test Event at Enoshima in Japan with encouraging results, headed by a gold medal in the Nacra 17 class and silver medals in the 470M and Laser.

Following the victory by reigning Olympic silver medallists Jason Waterhouse and Lisa Darmanin in the Nacra, Laser sailor Matt Wearn produced a fine medal race finale to surge into 2nd overall, putting the cherry on top of an outstanding northern hemisphere campaign.

Australia’s world No.1 ranked 470 duo of Olympian gold medallist Mat Belcher and Lake Macquarie sailor Will Ryan did not get to contest the double points medal race due to the fading breeze, leaving them in 2nd place and on the podium.

“I guess I’m a competitive person, so I always want to win,” commented Will Ryan.

“But, in all honesty, we were pretty lucky to have quite unique conditions this week and we improved through the week - the ultimate goal is Tokyo 2020. It’s the end of the season, it’s a good result for us to cap this one off and it’s given us a good platform to go forwards.”

Ryan said the result would add to the motivation the pair felt after finishing 5th at the World Championships in Denmark.

“We’re half way through this Olympic campaign towards Tokyo and I think we’re in a good spot,” he said.

“We know what we want to do and what we want to improve upon. Ultimately that’s all you can ask for at this point.