Malibu Boats

Last updated
Malibu Boats, Inc.
Public
Traded as NASDAQ:  MBUU (Class A)
Russell 2000 Component
Industry Boat building
Founded1982 [1] [2]
Headquarters Loudon, Tennessee, USA [3]
Key people
Jack Springer, CEO
Products Motorboats
Number of employees
586 (2017) [3]
Website www.malibuboats.com

Malibu Boats is an American manufacturer of recreational boats, founded in Merced, California in 1982, and currently headquartered in Loudon, Tennessee with additional production facilities in New South Wales, Australia. [2] [4] Malibu is "the world's largest manufacturer of watersports towboats", used both recreationally and in water skiing and wakeboarding events. [5]

Contents

History

Malibu was founded in Merced, California, in 1982 by Bob Alkema and Steve Marshall. [1] During the first year of operation, "production began at a modest pace of two boats per week", using a single-hull design and a blended gel coat. [6] [7] The company quickly developed a backlog, and increased staff and output. [6] [7] The company implemented an employee stock ownership program in 1986, [6] [7] and had acquired a nine percent share of the market by 1988. With the California plant at full production, the company opened a second plant in Tennessee. By the end of the year, Malibu had built almost 1,000 custom ski boats and had been awarded their first Product Excellence Award for Value by Powerboat Magazine. By 1989, it had become "one of the largest boat manufacturers in California", manufacturing 1200 boats per year. [1] That same year, Australian company Flightcraft sold its boat designs to Malibu, and Flightcraft's founder, David Telling, joined Malibu as director of sales and marketing, remaining with Malibu until he left to pursue other endeavors in 1991. [8]

By the end of 1992, Malibu had built a new production facility in Loudon, Tennessee to accommodate the increased demand east of the Mississippi. They removed all wood from the construction, and introduced the new, patented, Fiberglass Engine Chassis System (FibECS), which eliminated vibration and noise associated with the drivetrain. [7] In 1994, Malibu began building boats in Australia through local licensee Malibu Boats Australia, in Albury, New South Wales. [9] In Australia, Malibu had to take legal action to establish control of the "Malibu Boats" name, ultimately prevailing in Malibu Boats West Inc. v. Catanese, [10] with the Federal Court of Australia concluding that Malibu's advertising and marketing in Australia through American magazines was sufficient to establish ownership of the mark there. [11]

Malibu "was early to recognize the importance of wake boarding as an outgrowth of the traditional sport of water skiing", and therefore became positioned to capitalize on this market. [2] By 2002, Malibu was "arguably the largest custom ski boat manufacturer in the world". [6] In 2006, Black Canyon Capital, as the primary investor, acquired Malibu Boats. [12] Malibu's market share grew during the Great Recession of the mid-2000s, as most companies in the industry were contracting. [2]

In 2009, Jack Springer became CEO of Malibu. [13] Under Springer's direction, Malibu established the Axis Wake Research brand, [5] and relocated the executive headquarters to the production facility in Loudon, Tennessee, due to the proximity of that location to the larger freshwater marine manufacturing industry. [5] Malibu later "decided to concentrate its boat manufacturing to Loudon", also moving its customer service, finance, procurement and human resources operations there. [2] [13] As of 2012, Malibu had 325 employees in Loudon, had received 19 "Boat of the Year" awards and 31 "Product Excellence" awards, and accounted for 30 percent of the worldwide towboat market. [2]

A new entity, Malibu Boats Inc., was formed on November 1, 2013, as the holding company for Malibu's operations. [3] The company then had an IPO on the New York Stock Exchange in January 2014. [5] It "began trading on the NASDAQ at a price of $14 a share", yielding "an initial market capitalization of more than $300 million". [14] In mid-2014, Malibu acquired "all of the equity interests of the Malibu Boats licensee in Australia", while assuring regional interests that boats would continue to be manufactured in Australia, with the possibility that the Australian production facility could become Malibu's producer for the entire Asian market. [9] As of 2017, Malibu had "grown to over 500 employees in Tennessee and nearly 600 worldwide". [5] In July 2017, Malibu acquired competitor Cobalt Boats in a deal "valued at $130 million", with Malibu maintaining Cobalt's manufacturing operations in Neodesha, Kansas, and adding Cobalt CEO Paxson St. Clair to its board of directors. [15] [13] In September 2017, Malibu CEO Jack Springer was named the Boating Industry Mover & Shaker of the Year. [13]

In 2018 Malibu Boats acquired Pursuit Boats from S2 Yachts. [16] Pursuit offers of 15 models of offshore, dual console and center console boats. The saltwater outboard fishing market is one of the largest and fastest growing segments in the marine industry. [17]

Brands

Malibu has maintained two major brands in the industry, Malibu Boats and Axis Wake, [14] [18] and as of 2017, has acquired the competing Cobalt Boats brand. [15] [13]

Malibu Boats

The company's original brand, Malibu Boats, remains the company's premium brand. [14] In the early 1990s, Malibu adopted the practice of offering to fly purchasers of certain high-end custom boats to their factory headquarters, then located in Merced, "for a red carpet factory tour where they can see the special edition being built right before their eyes". [19] Malibu still produces 12 models at their Loudon, TN plant and offer factory tours by appointment. Several lines of boats are sold under the Malibu brand, including the "Response", [18] [1] "Wakesetter", [18] [1] and ultra-premium "M" series. [18]

Axis Wake

Malibu introduced the Axis Wake brand in 2009 as an "entry-level brand" that "doesn't have all of the electronics and bells and whistles that a Malibu does", such as having a manual wedge as compared to the electronically controlled wedge of Malibu models. [14] As of 2019, Malibu is marketing five models under the Axis Wake brand, the A20, A22, A24, T22, and T23, with the T23 selling between $65,000 and $100,000. [20] The Axis line has developed to changing consumer taste by incorporating highly sought after options such as Malibu's Surf Gate and Power Wedge III

Cobalt Boats

Founded in Neodesha, Kansas in 1968, Cobalt Boats manufactured "high-end speedboats", [21] specifically "mid- to large-sized sterndrive boats, and recently expanded into the surf and outboard markets". [22] Cobalt Boats has its own portfolio of intellectual property, having won a patent infringement lawsuit against Brunswick Corporation, parent company of Sea Ray Boats, over a popular "'retractable swim step', a partially submerged platform off the rear of the boat that allows boat passengers to easily enter and exit the water". [21] The infringed patent was upheld in inter partes review, including claims reciting the "spring-biased locking mechanism" key to operation of the Cobalt swim step, and the infringement judgment was upheld in Federal Circuit Court in September 2017. [23] For the 12 month period ending March 31, 2017, "Cobalt generated approximately $140 million in net sales" selling 24 boat models "through a dealer network of 132 locations in the United States, Canada, and overseas". [22] In 2017, Malibu acquired Cobalt Boats for $130 million, and indicated that it would continue the Cobalt brand and maintain a substantial presence in Neodosha. [22]

Pursuit Boats

Pursuit Boats, acquired by Malibu Boats from Tiara Yachts in 2018, are manufactured in a 250,000 square foot facility in Fort Pierce, Florida. [24]

Technology

Malibu developed and patented a hydraulically-operated system "that enables wakesurfers to customize waves on either side of the boat", [25] using "flat planes that unfold from either side of the stern of the boat to create the wake". [2] The technology was introduced to the market in 2012 and marketed as "Surf Gate" technology. [2]

In 2015, Malibu sued luxury high-performance boat maker MasterCraft for patent infringement with respect to Malibu's technology. In May 2017, the parties settled, with MasterCraft denying liability but agreeing to "enter into a license agreement for the payment of future royalties for boats sold by MasterCraft using the licensed technology". [26] In August 2016, Malibu entered into a licensing agreement providing this technology to pleasure and fishing boat manufacturer Chaparral Boats. [25]

Athletes and athletic events

As a producer of boats used for watersports, Malibu "dedicates many resources to the sports themselves". [6] Malibu has also established its own events, such as the Malibu Open, and "sponsors a large ski team that is heavily involved in the designing of the boats as well as promoting the Malibu products". [6]

The Malibu Pro Team has consistently included several world champions and world record holders in wakeboarding, wakesurfing, and water skiing. As of 2002, Malibu Pro Team water skiers included Drew and Doug Ross, Jason Paredes, Mike Champion, and nine-time championship holder Chris Parrish. Wakeboarders included Mike Weddington, Josh Sanders, and Jerry Nunn. [6] As of 2019, the wakeboarding and wakesurfing team consisted of: Raph Derome, Brian Grubb, Chad Sharpe, Olivier Derome, Luca Kidd, Massi Piffaretti, Jordan Wolfe, Stacia Bank, Jeff Langley, Parker Siegele, Rocker Steiner, Jamin Brown, You Hamazaki, Sanghyun Yun, Toshiki Yasui, Cobe Mikacich and Tarah Mikacich. The water ski team included Thomas Degasperi, Will Asher and current women’s world record holder Regina Jaquess.

As of 2019, water skiers had set thirteen world records behind one of Malibu's leading boats, the original Malibu Response TXi. [27] In July 2019 Regina Jaquess set a new world record of four and a half buoys at 41' off as part of the Malibu Boats team, behind the new Malibu TXi. [27]

As of 2019 the Axis Wake Research athlete team consists of Bec Gange, Tony Carroll, Austin Keen, Tom Fooshee, and Johnny Stieg.

Celebrity supporters

Celebrity supporters and endorsers of the brand have included Jake Owen, [28] [29] Chase Elliott, [30] T.J. Dillashaw, [31] and the late Troy Gentry. [32]

Related Research Articles

Wakeboarding Surface water sport

Wakeboarding is a water sport in which the rider, standing on a wakeboard, is towed behind a motorboat across its wake and especially up off the crest in order to perform aerial maneuvers. A hallmark of wakeboarding is the attempted performance of midair tricks.

Water skiing surface water sport

Water skiing is a surface water sport in which an individual is pulled behind a boat or a cable ski installation over a body of water, skimming the surface on two skis or one ski. The sport requires sufficient area on a smooth stretch of water, one or two skis, a tow boat with tow rope, two or three people, and a personal flotation device. In addition, the skier must have adequate upper and lower body strength, muscular endurance, and good balance.

Sea-Doo is a Canadian brand of personal water craft and boats manufactured by Bombardier Recreational Products (BRP). All Sea-Doo models are driven by an impeller-driven waterjet. All Sea-Doo PWC models are currently produced in BRP's plants in Querétaro and Juárez, Mexico. Its Rotax engines are produced at BRP's plant in Gunskirchen, Austria. In 2016, Sea-Doo had a 45.8% market share among PWC brands.

Brunswick Corporation, formerly known as the Brunswick-Balke-Collender Company, is an American corporation that has been developing, manufacturing and marketing a wide variety of products since 1845. Today, Brunswick Corporation is best known for its boating-lifestyle brands such as Mercury Marine, Sea Ray, Bayliner, Crestliner, Harris Boats, and Boston Whaler. Starting in the 1970s, the company also entered the field of arms development and manufacture. In 2015, it had sales of US$4.105 billion with net earnings of $241.4 million that year, and $276 million in 2016. Brunswick's global headquarters is in the northern Chicago suburb of Mettawa, Illinois.

MasterCraft

The MasterCraft Boat Company is a United States-based manufacturer of luxury high-performance boats. The company was founded in 1968 in Maryville, Tennessee, and is currently headquartered in Vonore, Tennessee. MasterCraft boats are used in waterskiing, wakeboarding and wakesurfing, though the company has also produced several boats that are not focused on water sports, such as the NauticStar line of fishing boats.

Motorola Solutions, Inc., is an American data communications and telecommunications equipment provider that succeeded Motorola, Inc., following the spinoff of the mobile phone division into Motorola Mobility in 2011. The company is headquartered in Chicago, Illinois.

Amalgamated Wireless (Australasia) telecommunications manufacturer

AWA Ltd, formerly Amalgamated Wireless (Australasia) Ltd, is an Australian electronics manufacturer and broadcaster. Throughout most of the 20th century AWA was Australia's largest and most prominent electronics organisation, undertaking development, manufacture and distribution of radio, telecommunications, television and audio equipment as well as broadcasting services.

Skurfing is a towed water sport similar to waterskiing, in that an individual is pulled behind a boat on a tow rope. However, instead of water skis, the sport uses a skurfboard—a floating platform the user balances on, similar to a surfboard, but typically much shorter, with two footstraps to prevent falling off the board and three fins positioned on the bottom that make it easier to maneuver when the board is being towed. The word itself is a portmanteau of skiing and surfing. Skurfing is often considered the precursor to wakeboarding.

Wakesurfing

Wakesurfing is a water sport in which a rider trails behind a boat, riding the boat's wake without being directly pulled by the boat. After getting up on the wake, typically by use of a tow rope, the wakesurfers will drop the rope, and ride the steep face below the wave's peak in a fashion reminiscent of surfing. Wakesurfers generally use special boards, designed specifically for wakes.

Wakeboard Boats are designed to create a large, specially shaped wake, for a wakeboarder to jump the wakes from side to side doing aerial tricks.

Correct Craft is a United States-based builder of powerboats primarily for waterskiing and wakeboard use. It was founded in 1925 by Walt C. Meloon as the Florida Variety Boat Company. Correct Craft is the oldest family-owned and operated boat manufacturer in the world. Correct Craft owns Nautique, Centurion, Supreme, Bass Cat, Yar-Craft, SeaArk and Bryant boat companies, Pleasurecraft Engine Group, Parker boats and Aktion Parks.

Air Nautique

The Super Air Nautique line-up of Nautique Boats is Correct Craft's crossover-wakeboarding focused model; the boat is outfitted for wakeboarding with a tower and ballast tanks from the factory. Furthermore, some air nautiques are in V-drive format, which creates a bigger wake for the rider.

Perfect Pass

Perfect Pass is a digital precision speed controls system used to control boat speed, used on high performance water ski and wakeboard boats. It has been the leader in the speed control market for competitive water sports since its conception in 1995. The widespread use of Perfect Pass in the Ski Boat Industry, has resulted in colloquial usage Perfect Pass in reference to similar speed controls products. It is commonly compared to Cruise control systems in cars.

Navico is a marine electronics company providing navigation, marine instruments and fish finding equipment to both the recreational and commercial marine sectors.

Liquid Force is a manufacturer of wakeboard and kiteboarding related products, gear, and clothing, based in the United States. The company also has a wakeskating and wakesurfing division besides the wakeboarding and kiteboarding focus. Liquid Force now counts as one of the leading manufacturers in the wakeboard related products and clothing market. Besides manufacturing wakeboard related products and clothing, the company sponsors numerous events and athletes to promote the sport. Liquid Force was founded in 1995 by Tony Finn and Jimmy Redmon, both pioneers in the sport of wakeboarding. Its headquarters are located in Encinitas, California.

Centurion Boats, owned by Fineline Industries, is a manufacturer specializing in the production of water sports boats, primarily tow boats for wakesurfing and wakeboarding. It was founded by current owner Rick Lee. Its headquarters and manufacturing operations are in Merced, California.

Regina Jaquess American water skier

Regina Jaquess is an American water skier. She had won awards in the sport by age 13 and won medals in Water skiing at the 2003 Pan American Games. In that same year she won at the Water Ski World Championship. She won gold medals in Water skiing at the 2011 Pan American Games and for 2012-2013 was named "Female Slalom Skier of the Year" by Water Ski Magazine.

Cobalt Boats is an American manufacturer of recreational motorboats. It was founded in 1968 and operated independently until its acquisition by Malibu Boats in 2017.

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