Raytheon has sold the recreational products division of Raytheon Marine Company for $108 million to a management team backed by the European venture capital firm Mercury Private Equity. Raytheon will use cash from the sale to reduce its debt. The transaction also includes an ongoing supply agreement expected to provide Raytheon up to $30 million in revenue over several years.
The Recreational Marine business is a designer and manufacturer of marine electronics, including Pathfinde radars, Autohelm autopilots and instruments, and Raychart navigation systems used by boaters and fishermen. In 2000, Recreational Marine had sales of $141 million. The sale includes Recreational Marine’s headquarters and manufacturing operations in Portsmouth, UK, and its sales and engineering operations in Nashua, NH, and Ft. Lauderdale, FA. There are about 575 employees at those sites. Raytheon will retain its commercial high seas division based in Kiel, Germany, and its contract manufacturing operation in Malaga, Spain.
Mercury Private Equity is a UK provider of private equity capital. It has offices in London, UK, and Frankfurt, Germany, and invests in companies with enterprise values of between $15 million and $400 million. It manages funds in excess of $1 billion.