NZ's Navman put up for sale by US parent company

US marine products giant Brunswick Corp today put its Brunswick New Technologies (BNT) unit, including New Zealand high tech darling Navman, on the block.

BNT operations consist primarily of Navman, plus Brunswick's Northstar and MX Marine brands.

Brunswick completed the purchase of Navman, which makes Global Position Systems (GPS) technology, two years ago for $108 million. BNT had annual sales of US$317m ($507m) and Brunswick would expect to get over $500m for the unit.

Brunswick, a Fortune 500 company that makes Mercury and Mariner outboard boat engines, was seen as having huge spin-off benefits for Navman as it is a major seller of boats around the world and opened up a global sales channel.

However, the Lake Forest, Illinois-based company's boat sales have been hit by higher oil prices. Its latest quarter profit fell 29 per cent, and today it cut its full-year forecast, blaming slowing demand for its recreational boats.

Brunswick also announced today it planned to repurchase up to US$500m ($800m) of its own stock with part of that to be funded by the sale of BNT.

Brunswick spokesman Matt Revord, in New Zealand today to inform Navman staff of the decision, said that BNT was growing in a different direction than Brunswick's core businesses. BNT was growing faster than the core businesses.

"We think the success that BNT has enjoyed with the support of Brunswick will grow with a new owner," Mr Revord said.

Brunswick said it had hired investment banker Merrill Lynch & Co to advise on the sale.

"This business unit has experienced exceptional growth under Brunswick's ownership over the past few years -- especially in the portable land-based navigation segment," Brunswick chairman and chief executive Dustan McCoy said in a statement to the New York Stock Exchange where it is listed.

"As we become increasingly focused on our core business segments -- marine, fitness, bowling and billiards -- we have determined that continuing to invest in this business unit to fuel growth is not consistent with our long-term strategic objectives.

"We believe that BNT's excellent long-term prospects may be better achieved under different ownership -- one that is focused on BNT's technological expertise -- to enable it to reach its full potential."

Prime Minister Helen Clark last year opened Navman's swish new office in Auckland where most of its 450 staff work.

The company was founded in 1988 by Peter Maire and generated revenue of over $450m last year.

The company is expanding into areas such as car navigation, wireless data, fleet tracking and recreation.

When opening the new office last year Mr Maire said the support of Brunswick was key to achieving future goals.

"We knew we had a partner to share our vision... of a $1 billion company. I'm sure when we get close to one billion we'll push that out to five.

"You've got a US$5 billion ($6.8 billion) company with a proven track record and it's kind of what New Zealand needs," Mr Maire said.

- NZPA