About Brunswick Corp-DE

Brunswick Corporation is a global leader in marine recreation, delivering innovation that transforms experiences on the water and beyond. The company’s unique, technology-driven solutions are informed and inspired by deep consumer insights and powered by its belief that Next Never Rests. The company designs, manufactures, and markets recreational marine products, including leading marine propulsion products and boats, as well as parts and accessories for the marine and RV markets, and it operates the world's largest boat club. The company is dedicated to industry leadership, to being the best and most trusted partner to its many customers, and to building synergies and ecosystems that enable it to challenge convention and define the future. Strategy The company’s strategy focuses on understanding and addressing the changing needs and behaviors of global boating participants; investing in innovative, global product leadership and leveraging its leading brands to meet consumer needs; delivering distinctive, elevated ownership and shared-access experiences that expand boating participation; being the partner of choice to its customers by offering integrated technical and business solutions; engaging consumers with the richest, most intuitive digital experiences; leading the industry in Autonomy, Connectivity, Electrification, and Shared Access (ACES) strategies, with an expanding set of commercially available products in each category; unlocking unique and profound enterprise synergies; investing in increasing global business resiliency; being an acknowledged marine industry leader in sustainability; and being an employer of choice through its clear purpose and culture of inclusiveness. The company’s integrated business strategy is supported by a balanced capital strategy that includes critical investments in new products and technology to further its market leadership position, organic growth initiatives, and its ACES and technology strategies while also managing debt levels and maturities. Segments The company operates through Propulsion, Engine Parts and Accessories (Engine P&A), Navico Group and Boats segments. Propulsion The Propulsion segment is a world leader in the manufacturing and sale of recreational marine engines and propulsion systems. The Propulsion segment designs, manufactures and sells engines, controls, rigging, and propellers globally to over 860 boat builders (both independent and Brunswick's Boat segment) and a network of more than 8,900 marine dealers and distributors, specialty marine retailers, marine service centers, and various local, state, and federal governmental accounts. White River Marine Group, LLC (including Tracker and Ranger Boats) and Brunswick Boat Group are significant customers. Propulsion segment engines are designed for use in recreational, commercial, and racing applications. Mercury designs and sells four-stroke outboard engine models ranging from 2.5 to 600 horsepower; Mercury Marine and Mercury Racing manufacture inboard and sterndrive engine models ranging from 115 to 1,550 horsepower. Mercury Marine also manufactures two-stroke, non-DFI (direct fuel injection) engines for certain markets outside the United States and Avator electric propulsion systems in models ranging from 7.5e to 110e. In 2023, Brunswick acquired Fliteboard Pty Ltd (Fliteboard), a leader in eFoiling technology, to further enhance the company’s electrification and shared-access strategies. Fliteboard is operated as part of the Propulsion segment. Engine Parts and Accessories (Engine P&A) The Engine P&A sells products such as engine parts and consumables, including oils and lubricants, electrical products, boat parts and systems, and also includes the company’s marine parts and accessories distribution businesses. Engine P&A products are designed for and sold mostly to aftermarket retailers, dealers, distributors, and original equipment manufacturers (including Brunswick Boat segment brands) for both marine and non-marine markets. The Engine P&A distribution businesses are leading distributors of Brunswick and third party marine parts and accessories throughout North America, Europe, and the Asia-Pacific, offering same-day or next-day delivery service to a broad array of marine service facilities. Navico Group The Navico Group segment designs, develops, manufactures, and markets products and systems for the marine, RV, specialty vehicle, mobile and industrial markets, as well as aftermarket channels. Navico Group products include marine electronics, sensors, and control systems, digital control and monitoring systems, instruments, fish finders, sonar, radar, trolling motors, fuel systems, batteries, power management, and electrical systems. Navico Group sells its products to aftermarket distributors and retailers, as well as original equipment manufacturers. White River Marine Group, LLC, Brunswick's Engine P&A distribution businesses and Brunswick Boat Group are significant customers. Boat The Boat segment consists of the Brunswick Boat Group (Boat Group) manufactures and distributes recreational boats, and Business Acceleration. The Boat segment is a world leader in the manufacture and sale of pleasure boats. The Boat segment manages Brunswick's boat brands, evaluates and optimizes the Boat segment's boat portfolio, promotes recreational boating services and activities to enhance the consumer experience and dealer profitability, including through its Business Acceleration initiatives, and speeds the introduction of new technologies into boat manufacturing and design processes. The Boat segment procures substantially all of its engines from Brunswick's Propulsion segment, and boats often include other parts and accessories supplied by the Engine P&A and Navico Group segments. The Boat Group sells its products through a global network of more than 1,300 dealers and distributors, with some operating in more than one location and some carrying more than one of the company’s boat brands. The Boat Group's largest dealer, MarineMax, Inc., is a significant external customer which carries a number of the Boat Group's product lines and has multiple locations. Included within the Boat segment is the Business Acceleration business, which is dedicated to developing emerging and disruptive business models, focusing on services and subscriptions, and engaging the next generation of diverse boaters. Business Acceleration businesses accounted for 8 percent of Boat segment net sales in 2023. Business Acceleration's Freedom Boat Club (FBC) is the world's largest boat club network. FBC operates in more than 400 locations across the U.S., Canada, Australia, and Europe, and has nearly 60,000 memberships. FBC members pay an upfront initiation fee and ongoing monthly dues in exchange for gaining shared access to their local club’s diverse fleet of boats and reciprocal privileges at all other FBC locations. Business Acceleration also operates a variety of other businesses including dealer and retailer financing; retail extended warranty and insurance businesses; Boateka, a certified pre-owned boat platform; and other marine services businesses. Financing Services Through its Brunswick Financial Services Corporation subsidiary, the company owns a 49 percent interest in a joint venture, Brunswick Acceptance Company, LLC (BAC). Under the terms of the joint venture agreement (JV Agreement), BAC provides secured wholesale inventory floor plan financing to the company’s boat and engine dealers as well as Freedom Boat Club franchisees. A subsidiary of Wells Fargo & Company owns the remaining 51 percent. Many dealers secure floor plan financing from BAC, and, to a lesser extent, from other third party financing companies, enabling them to stock product in advance of the peak selling season and providing stable channels for the company’s products. Distribution The company utilizes independent distributors, dealers, and retailers (Dealers) for the majority of its boat sales, sales of parts and accessories, and some sales of marine engines. The company has over 19,000 active Dealers serving its business segments worldwide. The company’s Dealers typically carry one or more product categories and are independent companies or proprietors that range in size from small, family-owned businesses to a large, publicly traded corporation with substantial revenues and multiple locations. Some Dealers sell the company’s products exclusively, while a majority also carry competitor and complementary products. The company partners with its Dealer network to improve quality, service, distribution, and delivery of parts and accessories to enhance the boating customer's experience. Besides its network of independent Dealers, the company sells parts and accessories to boat builders and operate its own wholesale parts and accessories distribution companies, which are leading distributors of marine parts and accessories with a network of warehouses located throughout the markets they serve, offering same or next-day delivery to a broad array of marine service facilities and Dealers. In addition, the company operates a leading boat dealer in the Southeastern U.S. with four locations selling boats and parts and accessories. Technology and Innovation The company continues to develop and refine future innovative projects through its team at the i-Jet Innovation Lab at the University of Illinois Urbana-Champaign. In 2023, Mercury Marine unveiled its Avator 7.5e electric outboard at the Consumer Electronics Show in Las Vegas and has since introduced Avator electric propulsion systems up to 110e. Mercury Marine also entered into an agreement with Jing-Jin Electric (JJE), an electrified propulsion leader in components, assemblies, and systems for global automotive applications, to collaborate on Mercury's portfolio of electric propulsion solutions. The company’s Boat Group introduced the new Veer boat brand, intended to support electric propulsion, and Navan by Quicksilver, which combines innovative technology with superior performance. Navico Group introduced three new Mastervolt brand larger capacity, lithium-ion deep-cycle supply batteries to provide enhanced power storage capacity in a lighter weight and smaller footprint. Navico Group's Whale brand launched Heat Air, a lightweight, space-efficient, propane-based, heating solution for recreational vehicles. Intellectual Property As of December 31, 2023, the company owned more than 1,100 active U.S. patents; 450 pending U.S. patent applications; 650 active foreign patents; 270 pending foreign patent applications; 370 U.S. registered trademarks; and 1,800 foreign registered trademarks. The company invests in physical and IT security programs to prevent theft and inadvertent disclosure of trade secrets. In addition to Brunswick, the company’s primary trademarks include Mercury Marine, Boston Whaler, Lund, and Sea Ray. History Brunswick Corporation was founded in 1845. The company, a Delaware corporation, was incorporated in 1907.