Scale effect for Navico in the yachting industry
In the wake of the June 24, 2021 announcement of the agreement to acquire marine electronics specialist Navico by world leader in yachting Brunswick Knut Frostad, CEO of Navico, and Brett Dibkey, President of Advanced Systems Group (ASG), a subsidiary of the Brunswick Group into which the brands will be integrated, discussed the background and business ambitions following the transaction. While Brett Dibkey considers the combination to be a natural fit to fill a hole in ASG's offering, Knut Frostad emphasizes the stability and development capacity that Navico brings to the table. "We used to be owned by investment funds. A fund buys you to sell you back and you know it. We are delighted to now be owned by a strategic player, the largest in the yachting market. Electronics needs scale to be effective. Navico was already important, but integrating Brunswick gives us new scale. We've found our final home. Now we can really think long-term," says Navico's CEO.
Investing in brands, both in sailing and powerboats
The new owner wants to build on the Simrad, Lowrance, B&G and C-MAP brands and Navico's innovation capabilities. "Navico has iconic brands.We will continue to invest in those brands. Prior to the buyout, we looked at the projects in development and, while I can't say more at this time, we're very excited about what's in the pipeline," said Brett Dibkey,
ASG wants to remain in all of Navico's markets, both professional marine and recreational, sailing and power. "ASG and Brunswick are often associated with engines, but ASG is already present in sailing with brands such as Mastervolt or Czone. Sailing is seen as a growth lever by Brunswick, and all the major sailing yards are now building power boats, which broadens the customer base. In addition, the work on Zero Emission boats starts with sailing," says Knut Frostad.
A strong marine electronics supplier
In addition to the technical aspects, the head of Navico sees the acquisition as strengthening Navico's credibility and standing with its customers in a complex global environment. The proximity to the Brunswick Group's boat brands should not be a problem in the original equipment market with the rest of the industry. "ASG is already operated very independently of the other Brunswick Group entities and internal group sales only represent 6%. We work very closely with brands like Yamaha, for example, while Mercury is part of the Brunswick Group," Dibkey said. "Customers just want the best product. Supply chain issues are the real problem today. Being part of a large group strengthens our ability to be a good supplier to OEMs," concludes Knut Frostad.
