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New Zealand high-tech firm Navman has been carved up for sale by its United States owner Brunswick Corp.
Brunswick Corp, the world's largest maker of recreational boats, said it agreed to sell its marine electronics operations, including Navman's marine brands, to Norway-based Navico International Ltd.
The purchase also includes the Northstar and MX Marine, the company said in a statement.
Brunswick revealed plans ten months ago to sell its new technologies operations, which makes global positioning systems.
"When we announced our intent to sell portions of Brunswick New Technologies [BNT], we stated at that time that we believed that BNT's 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," said Brunswick chairman and chief executive officer Dustan E. McCoy.
The transaction terms including price were not disclosed but the Herald reported in December that problems selling the new technologies business, which owns Navman, resulted in the book value of the US company being slashed by $100 million to $137 million.
In a statement to the New York Stock Exchange, Brunswick said: "Based on the performance of this operation and recent discussions with potential buyers, the company has concluded that proceeds from the sale of BNT will be less than its book value."
"These conditions will result in a non-cash asset impairment charge estimated in the range of US$70 million to US$95 million in the fourth quarter, primarily driven by the portable navigation device business."
The sale does not include Navman's portable navigational device division or fleet management division, which are both still for sale.
Brunswick New Technologies bought Navman two years ago for $108 million.
BNT, mainly comprising Navman, had annual sales last year of US$317 million ($507 million) and Navman reported a profit of $127.2 million.
- NZ HERALD STAFF/REUTERS
