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      Members Only Fluid Forum View   08/08/2017

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Grassman

OMC

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I read this on HotSpotOutdoors.com

interesting



Omc's New Life
--------------------------------------------------------------------------------
REPORT INDEX
Bodean 02/06/01
Mike Michalak 02/06/01

Date: 02/06/01 1:32 PM
Submitted By: Mike Michalak
IP Address: 24.216.105.233

Here's the scoop...
Sources at Outboard Marine Corp. (OMC) confirmed this morning that the company has received and approved a joint bid from Bombardier and Genmar for the purchase of its boat and engine business.

OMC, which is going through Chapter 11 bankruptcy, received bids Monday in an auction proceeding that is part of the bankruptcy. Sources said Bombardier and Genmar bid US$95 million and that under the joint arrangement, Bombardier would get the engine business and Genmar would get the boat business.

Sources said the proposed purchase is far from a done deal and the matter will go to a bankruptcy court hearing on Thursday where objections from other bidders could be raised. The sources did not identify other bidders.

Gary Beckett, OMC director of corporate communications, said the company is unable to comment on the bids at this point.

Web site reports on bids

Also this morning, a Web site maintained by the union representing workers at Outboard Marine Corp. — the Independent Marine Machinists Association (IMMA) — reported this morning that the joint bid by Bombardier and Genmar was received, but that it excludes the Princecraft boat line, which will be bid separately.

The IMMA site, called Lighthouse [] claimed that because of contingencies required by Bombardier in the placement of the bid, requiring certain cures by OMC, the net bid is actually US$87.7 million.

The Lighthouse site said there were three qualified bidders for the entire business, and that Brunswick Corp. (NYSE: BC) was also a bidder. The Web site contends that Brunswick was caught off guard by the teaming of Bombardier and Genmar and attempted to form a joint bid with others that were bidding on fragments of OMC.

Brunswick was prepared submit a counter bid, which may have been higher, but the consideration of such bid was rejected by the OMC creditors committee, Lighthouse claims. Brunswick is likely to object further before the bankruptcy court.

As part of its bid, Bombardier/Genmar apparently received waiver by the creditors committee of the ability to liquidate the engine business, so it appears that the engine portion of the business will remain intact, the union Web site said.

Also, the Lighthouse report says that because the overall bid was as low as it was, unsecured creditors might receive nothing.

OMC, based in Waukegan, filed for Chapter 11 protection from creditors in the US Bankruptcy Court Northern District of Illinois in December. The company is one of the largest recreational boat and engine makers, accounting for more than 30 percent of the US outboard market and around 25 percent of the world market, according to the company. Its engine brands include Evinrude and Johnson, and boat lines include Chris-Craft, Four Winns, Javelin, Princecraft, Hydra Sports, Seaswirl and Stratos.


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I thought this was interesting information and would start a lively discussion but no one responded...I guess you all must have Mercury outboards Just hope I can still get parts for my Johnson if I ever need 'em

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Don't worry Grassman,
You will still be able to get your parts.
This will be good for both Johnson and Evenrude. Bombardier has a tradition in cutting edge technology....as long as we dont see yellow engine covers..... smile.gif
GullGuide
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Gull Guide Service
http://fishnduckguides.com/gullguide7.htm

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Why will you need parts for a Johnson/Evinrude product? Heck, I have owned 6 OMC motors and none of them have ever needed parts or service (with the help of plenty of good maintenance). Most of the motors were 20 years old or older too. I hope they don't change a thing out of this ordeal.

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