US giant takes stake in Rayglass

By PETER GRIFFIN

American corporate giant Brunswick has followed its 70 per cent acquisition of Navman by taking a minority stake in New Zealand boatbuilder Rayglass.

Through its Mercury Marine division, Brunswick has amassed a long list of popular boat brands through acquisitions around the world.

Chairman and chief executive George Buckley had hinted that the company would open its chequebook again in the wake of the $56 million purchase of Navman, an Auckland designer of digital navigation equipment.

"There will soon be other announcements about investments here," Buckley said.

"New Zealanders are blessed with a love of the water. It's created some very innovative companies."

Brunswick is taking a "minority" shareholding in Rayglass, which is owned by Tony and Vicki Hembrow. The price or size of the stake was not disclosed.

Rayglass has grown rapidly over the last few years, in part due to its close involvement with the last two America's Cup regattas.

During the last regatta it had $10 million worth of its boats zipping around Auckland Harbour.

Rayglass had revenue of $20 million last year, employs 55 full-time staff and does 60 per cent of its business overseas.

Tony Hembrow said the sale, which was three years in the making, was about "reducing risk" and increasing the company's potential.

"We could have sold to a lot of wealthy New Zealanders - we had a lot of people knocking on our door. But Mercury brought something more to the party."

As in the Navman deal, that "something" was selling power.

"I have six dealers around the world," said Hembrow. "[Mercury] have 5000."

Brunswick had not asked for anything more than a minority stake.

"They said they were interested in owner-operator type companies."

Mercury, itself a large maker of boats, was interested in the Rayglass commercial craft, whose uses range from police patrols to oil rig work.