KEY POINTS:
New Zealand's biggest boat-builder, Rayglass, has been swallowed by United States marine giant Brunswick, just four years after selling it a minority stake.
Rayglass' managing director, Tony Hembrow, yesterday confirmed Brunswick had agreed to buy the remaining 51 per cent of the company, after snapping up 49 per
cent in September 2003.
Hembrow declined to comment on the sale price, rumoured to be $31 million, citing a confidentiality agreement he had signed.
However, the deal will almost certainly attract the attention of those who compile the annual rich lists.
Just a fortnight ago, Rayglass was cited in a review of Investment New Zealand by the Ministry of Economic Development as an example of a local success story that had benefited from foreign investment without selling out.
It has been hailed by the Government as a model of a successful home-grown business, developed with flair, bravery and Kiwi ingenuity.
Hembrow defended the sale, saying: "You really can spin that any way you want."
The company's 100 staff in Hamilton and Auckland had been assured Brunswick had big plans to continue to grow the business, he said.
And he stressed the deal would continue to benefit other local businesses that enjoyed spin-offs from Rayglass' success.
Brunswick is the biggest boat manufacturer in the world. Its brands include Bayliner, Sea Ray, Hatteras, Boston Whaler, Maxum, Sea Boss and Trophy.
However, the deal is likely to raise eyebrows because it is the same US company that also bought Kiwi electronics success story Navman four years ago. After the purchase, it slashed staff numbers, broke up its divisions then put them on the market.
Scandinavian interests now control a large portion of Navman, which has a much scaled-back presence here.
Hembrow said yesterday Brunswick's Navman acquisition had made little sense, as its real expertise was boats.
Discussions about the latest deal had gone on for some time, he said.
He will continue to run the business. "We have a fairly aggressive expansion plan," he said.
Rayglass' fibreglass runabouts and inflatables are exported to more than 17 countries.
It makes 325 boats a year, of which it exports 180 to 200.
Eighteen months ago, with Brunswick's assistance, it built a large new manufacturing base.
Rayglass' customer order book includes Ernesto Bertarelli and Oracle's Larry Ellison, and the company has supplied all the chase boats for America's Cup events for the past seven years.
Sailing away
* Remaining 51 per cent of Rayglass is rumoured to have been sold for $31 million.
* Brunswick, the buyer, is the world's biggest boat-builder.
* The company apparently has expansion plans for Rayglass.
* It also bought New Zealand company Navman, which it broke up and sold.
The Rayglass man
Tony Hembrow admits he still gets ribbed about the television ads for Westpac, in which he features.
In the ads, he tells of the hardships of building up Rayglass, and marvels that his wife stuck by him, even though they had to live in a factory for several years.
Hembrow, who has a background in the automotive industry, took control of the company in 1987, shortly after the sharemarket crash.
While doom was the order of the day for an industry regarded as producing top-end products, he took the opposite view.
"I knew what boaters wanted was quality and the standard of finish expected when looking for a new car," he said last year. "Right from the start we stuck to the formula of pride in the product, innovation and a commitment to quality."
The company has won awards at boat shows around the world.
In 1995, a fire destroyed its Pakuranga factory and for several months production was shifted to locations throughout the region.
Last year, it moved into new headquarters on the banks of the Tamaki River in Mt Wellington.
One of the company's big successes has been the range of Protector RIBs (rigid inflatable boats) that first created a worldwide impact as chase boats in America's Cup campaigns.
They are popular with superyacht owners, and are also used as rescue and workboats .
The word Protector has become synonymous with RIBs, just as Jet Ski has come to include all types of personal watercraft.