Malibu Buys Cobalt

[octavio3311]

https://www.streetinsider.com/Corporate+News/Malibu+Boats+(MBUU)+to+Acquire+Cobalt+Boats+for+$130M/13055012.html

Didn't see that one coming!

 

[msavold]

No kidding. And no idea about the financial background but if you'd asked me yesterday I would have probably bet either the other way around or certainly more than $130M to buy Cobalt.

 

[scokill]

They didn't even get 1x 12 months revenue. $130M and they had $140M in sales the past 12 months.

 

[Johmas50]

They didn't even get 1x 12 months revenue. $130M and they had $140M in sales the past 12 months.

I thought that was weird too. Why would a privately held company sell for what amounted to less than a single years net profit.

 

[scokill]

To be honest I was surprised at how small both Cobalt and Malibu are from a revenue standpoint. This goes to show just how fragmented the market is. While Malibu said that Cobalt would be accretive, their profit can't be that great given their sales price because Malibu isn't setting the world on fire from a profit standpoint.

 

[jlcj7]

I thought that was weird too. Why would a privately held company sell for what amounted to less than a single years net profit.

$140 in net SALES, not profit...

I have no idea what the margins are on boats after all cost of goods, selling and admin, etc... I am guessing 20% on high end (but again, no idea... car manufactures are around 7-10%)

So at $130MM, MAY be around 5X profits

 

[scokill]

$140 in net SALES, not profit...

I have no idea what the margins are on boats after all cost of goods, selling and admin, etc... I am guessing 20% on high end (but again, no idea... car manufactures are around 7-10%)

So at $130MM, MAY be around 5X profits

Net Income for Malibu is $18M on $257M revenue (7%). GM 9.4B on 166B (~6%). I would have expected "premium" brand of Cobalt to be worth more if their margins were reflective of premium brand, and Malibu to be more profitable.

 

[PEARCE]

I wonder if we'll someday see an inboard luxury wakeboat with a Cobalt badge on it.

 

[GoVols01]

Well, Malibu must be rolling in the cash since they're leasing the Surf Gate technology to Chaparral. Kudos to them! I personally think the wake boats are way overpriced as well as the Cobalt boats. Even their Axis boats are overpriced. I looked at their entry-level 20' boat at the boat show this year. It was close to $70K and I'd compare the quality of the finishings to that of a Bayliner - very pathetic. I'm sure it makes a sweet wave for surfing, but you're basically paying for the Surf Gate technology, the gigantic V8 engine, and the dumb name.

 

[bigblank69]

Probably a very good deal for Cobalt.

 

[scokill]

Well, Malibu must be rolling in the cash since they're leasing the Surf Gate technology to Chaparral. Kudos to them! I personally think the wake boats are way overpriced as well as the Cobalt boats. Even their Axis boats are overpriced. I looked at their entry-level 20' boat at the boat show this year. It was close to $70K and I'd compare the quality of the finishings to that of a Bayliner - very pathetic. I'm sure it makes a sweet wave for surfing, but you're basically paying for the Surf Gate technology, the gigantic V8 engine, and the dumb name.

Can't be rolling in that much cash they only had 150 million in revenue .

 

[Peelz]

A cobalt wake boat? Mortgage your houses, boys, thats gonna be money. LOL probably totally worth it but. man......$$$$$$

 

[ripler]

If Malibu didn't have so much money added to their MSRP they would be selling way more boats, they have 34-64K markup between dealer cost and MSRP. Here's a website that will show you invoice and MSRP, I was really shocked at some of these numbers.

http://www.seedealercost.com/products/manufacturer-models/index/id/1547/productCategorySlug/boats

 

[fireflymedic]

If Malibu didn't have so much money added to their MSRP they would be selling way more boats, they have 34-64K markup between dealer cost and MSRP. Here's a website that will show you invoice and MSRP, I was really shocked at some of these numbers.

http://www.seedealercost.com/products/manufacturer-models/index/id/1547/productCategorySlug/boats

Wow that is some high markups