MCBC Holdings Inc. has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) for its initial public offering (IPO). Pricing for the offering was given in an expected range of $13 to $15, for roughly 6.1 million shares. That values the offering at a maximum of $91 million. The company will list on the Nasdaq Global Market under the symbol MCFT.
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The underwriters for the offering are Baird, Raymond James, Wells Fargo, KeyBanc Capital Markets and Wunderlich.
The company is a designer, manufacturer and marketer of performance sport boats, with a strong market position in the United States and internationally. MCBC has dealers in 40 countries globally. The boats are used for water skiing, wakeboarding and wake surfing, as well as general recreational boating.
In the filing MCBC detailed its products:
Our MasterCraft-branded portfolio of Star Series, XSeries, and NXT boats are designed for the highest levels of performance, styling, and enjoyment for both recreational and competitive use. The Star Series and XSeries are geared towards the consumer seeking the most premium and highest performance boating experience that we offer, and generally command a price premium over our competitors’ boats at retail prices ranging from approximately $60,000 to $150,000. Unveiled in January 2014, the all-new MasterCraft NXT line introduces the quality, performance, styling, and innovation of the MasterCraft brand to the entry-level consumer, with retail prices ranging from approximately $50,000 to $75,000. We have strategically designed and priced the MasterCraft NXT line to target the fast-growing entry-level customer group that is distinct from our traditional customer base, while maintaining our core MasterCraft brand attributes at profit margins comparable to our other offerings.
Net sales grew to $177.6 million in fiscal 2014 from $137.3 million in fiscal 2012, representing a compound annual growth rate (CAGR) of 13.7%. Sales of MasterCraft-branded products grew to $163.6 million in fiscal 2014 from $118.4 million in fiscal 2012, a CAGR of 17.6%.
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The company outlined its plan for the proceeds of this offering:
- To repay all outstanding borrowings under our $75 million Term Loan Facility and, to the extent sufficient net proceeds remain, to repay borrowings under our $30 million Revolving Credit Facility
- To the extent any net proceeds remain, for general corporate purposes
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