Issue link: https://read.dmtmag.com/i/570649
24 | Boating Industry | October 2015 www.BoatingIndustry.com [ 2015 Movers & Shakers ] BILL YEARGIN, PRESIDENT & CEO Correct Craft • Orlando, Fla. There's probably been no industry leader who has over- seen more change in the last year than Correct Craft CEO Bill Yeargin. Since last October, the company has added three engine brands and four boat brands through a series of acquisitions, joining its other holdings, Nautique Boats and Aktion Parks. It's part of a long-term plan to grow and diversify the business that started when Yeargin joined the company as CEO in 2006 following a 20-year career at Rybovich, a service provider for yacht owners. "We thought we'd like to get into some other parts of the industry, then we got into the downturn and that sidetracked us for a couple of years," Yeargin said. "Com- ing out of the downturn, we refocused on this." Even then, Correct Craft found challenges as the uncertainty in the industry left many companies either unable to sell or unattractive options. "The companies that we really wanted to purchase didn't want to sell because the valuations were so low at the time," Yeargin said. "Then we had another bunch of com- panies that said, 'Here's the keys, I'm begging you, please take it,' and most of those companies are gone today." So instead Correct Craft focused on growing Nautique, although they were able to bring one additional company on board, purchasing the Orlando Watersports Complex in 2012. It was a move that raised some eyebrows at the time, as many see cable parks as competition to boating. "I got a lot of calls from some peers of mine and the comments were basically 'What are you doing?'" Yeargin said. "I saw just the opposite. If we bring people into water sports, that will have a huge impact on the boating industry and we're seeing that already." The cable parks can whet the appetite for the better experience of actually being out on the water behind the boat. Yeargin relates the story of a buyer who purchased two Nautiques after enjoying the park with his son as just one example. "I jokingly tell people, if 1 percent of the people who use the cable parks buy a new Nautique, we're going to have to build a new factory," he said. "I believe the cable park experience leads to people wanting to buy boats. We'd never buy or open a cable park exclusively for that reason – they've got to stand on their own fi nancially – but we believe there are a lot of connections." As the market improved additional acquisition opportunities presented themselves. The fi rst was Pleasurecraft Marine, manufacturer of PCM, Crusader and Levitator engines in October 2014. The brand, company culture and integration opportunities all made it an attractive partnership for Correct Craft. Although Nautique was PCM's largest customer, the company sold – and will continue to sell – engines to other boat builders. "There were some people that were concerned about that," Yeargin said. "One of the things that was confusing to the marketplace was that Nautique did not buy Pleasurecraft Marine. Correct Craft bought Pleasurecraft Marine. Pleasurecraft Marine and Nautique are sister companies." In March, Correct Craft expanded outside the water sports market with the acquisition of fi shing boat brands Bass Cat and Yar-Craft. In this case, the Pierce family – owners of the brands – was looking for someone that would support and invest in the brands. "They didn't want to sell to a private equity fi rm that was going to come in and try to fi gure out every way to squeeze the employees and squeeze the vendors," Yeargin said. "They wanted someone who would be good stewards of the brand and the employees." Bass Cat's long history of quality – it frequently led the industry in J.D. Power ratings over the years – and the opportunity to enter into a new market made the brand especially attractive. "At some point we start running out of ways to grow just in the water sports market," Yeargin added. Finally, in June, Correct Craft added a majority stake in both Centurion Boats and Supreme Boats. "One of the things we've heard from Nautique dealers [is that] they wanted to look for opportunities to sell more value product," Yeargin said. While Correct Craft could have started another brand, in Centurion and Supreme, "we saw two brands that both had brand equity and existing dealer bases that would fi t well into our Correct Craft family." In all cases, the new brands will continue to be manufactured at their existing facilities and Correct Craft aims to keep the existing management. "We want to continue with the current teams, we want to share our culture and the way that we operate and at the same time preserve the things that are unique about their cultures and made them successful," Yeargin said.