Malibu Boats, Inc. Announces Agreement to Acquire Cobalt Boats, LLC

LOUDON, TN--(Marketwired - June 28, 2017) -

• Combines two premium, best-in-class recreational boating brands, further strengthening Malibu's leading position in the powerboat industry
• Cobalt's comprehensive portfolio of quality products provides Malibu greater scale and a more balanced portfolio
• Adds a complementary distribution network allowing for more market opportunities across multiple segments within the recreational boating industry
• Combined business anticipated to deliver approximately $7.5 million in synergies and operational improvements expected to be realized by the fourth year post-closing, and approximately $18 million in expected tax benefits
• Expected to be accretive to Malibu's earnings per share, excluding purchase accounting and acquisition costs, in fiscal year 2018

Malibu Boats, Inc. (NASDAQ: MBUU) ("Malibu" or the "Company") announced today that it has entered into a definitive agreement to acquire Cobalt Boats, LLC ("Cobalt"), a privately held, leading manufacturer and distributor of premium sterndrive and outboard boats for an aggregate purchase price of $130 million, subject to customary adjustments for the amount of working capital in the business at the closing date and subject to adjustment for any judgment or settlement in connection with a pending litigation matter between Cobalt and Sea Ray Boats, Inc. and Brunswick Corporation.

Founded in 1968, Cobalt is the market leader in the mid to large-sized sterndrive boat market and their recent expansion into the surf and outboard markets provides further opportunities for Cobalt to reach additional customers. Cobalt manufactures and sells water sport boats, cruisers, bowriders and outboard boats for cruising, skiing, entertainment, surfing, fishing and other recreational uses on lakes, rivers, intercoastal waterways and oceans. Cobalt is a world class brand with a product portfolio of twenty-four models across six proprietary, industry-leading series. Cobalt sells its boats through a well-established dealer network of 132 locations in the United States, Canada, and overseas. For the last 12 months ended March 31, 2017, Cobalt generated approximately $140 million in net sales.