Navico, the market leader in recreational and coastal commercial electronics, has announced steps to ensure the financial stability of the company during the global recession.
Navico Increases equity and subordniated debt by almost US$ 200 Million to prepare for continued tough market conditions
Navico, the market leader in recreational and coastal commercial electronics, has announced steps to ensure the financial stability of the company during the global recession.
A financial agreement has been reached between Navico’s owners and lenders that will improve the company’s financial strength and flexibility through an increase in equity and convertible debt by a total of US$198.9 million.
Navico’s position in the market is also further strengthened by several significant operational changes, where the different companies that Navico has acquired have been merged into one strong global company. During the last two years, Navico has reduced the number of its manufacturing facilities and achieved an impressive 61 per cent improvement in manufacturing efficiency. Furthermore, the operating cost base has been reduced by 50 per cent as a result of its latest savings programmes.
Leif Ottosson, Navico CEO and President, said: “The marine electronics industry is currently experiencing difficult market conditions, but we do remain optimistic on the long term prospects for the industry.
In addition to the introduction of several new innovative and award winning product ranges this year, such as the Lowrance HDS series, Navico Broadband Radar™, Lowrance StructureScan™ Imaging Sonar and Lowrance Endura Hand Held GPS for Outdoor & Marine channels, Navico plans to launch many other new and innovative products throughout 2009-2011 as a result of a US$ 50 million investment in product development. ”
Hugo Maurstad, Chairman of Navico’s Board said: “Navico has come a long way in building a strong company with several powerful brands and an unparalleled product portfolio. We believe the company has a great future and with the new financial commitment from its owners and lenders, the company can focus on doing the right things through the current market downturn and come out of it with ever better products, an improved customer service organisation and a more effective supply chain.”
Ends
For further information on this release please contact Leif Ottosson, CEO and President at leif.ottosson@navico.com
For general press enquiries please contact Matthew Trace, Remarkable PR, 01962 893 893 or email matthew.trace@remarkablegroup.co.uk
About Navico
Navico is the parent company to five leading marine electronics brands: B&G, Eagle, Lowrance, Northstar and Simrad. Navico has approximately 1,500 employees globally. The company has development and manufacturing facilities in the USA, Mexico, the UK, Norway and New Zealand. www.navico.com