princess yachts bought out

Luxury boat builder Princess Yachts taken over by US private equity firm

Plymouth-based princess yachts said the deal would take the business to the ‘next level’.

11:25, 14 FEB 2023

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A US investment firm has acquired a controlling interest in the UK’s largest luxury boat builder Princess Yachts for an undisclosed sum.

The Devon-based manufacturer has reached an agreement with KPS Capital Partners, a former backer of golf equipment maker TaylorMade.

Completion of the transaction is expected in the first quarter of this year, subject to customary closing conditions and approvals, with existing Princess Yachts stockholders to retain ownership in the company.

Princess Yachts sells yachts to a global network of independent distributors, employing around 3,200 staff and operating five manufacturing facilities in Plymouth.

Chief executive Antony Sheriff said both parties were “deeply committed” to investing in the company's future and adding to its range of yachts.

Mr Sheriff said: “With a current order book nearing a record $1bn (£820.2m) and many model lines sold into 2025, we have never been in a stronger commercial position.

“Together with KPS' tremendous track record of manufacturing excellence and investing in leading brands, we are now positioned to take Princess Yachts to the next level of industry leadership in quality and innovation.”

Ryan Harrison, a partner of KPS mid-cap investments, added: "We are excited to make this significant investment in Princess Yachts, a leading company in the luxury global yachting industry with an iconic brand grounded in British tradition, a remarkable and growing product range and worldwide reputation for quality and innovation.”

In its most recent full-year financial report Princess Yachts almost halved its losses during 2021 to £19.2m. During the period revenue of £312.4m sailed past the previous year’s total of £244.4m, despite “significant headwinds” for production such as the Covid-19 “pingdemic”.

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Princess Yachts sold to US-based KPS group

Alessio Molla
February 14, 2023

This definitive agreement will lead KPS Capital Partners to acquire a controlling equity interest in the historic company which, founded in 1965, has been owned by the private equity group L Catterto since 2002. The deal is expected to be completed in the first quarter of 2023 and will see existing shareholders retain ownership of the company.

The announcement comes after the company unveiled its expansion plans just last year, which also include the construction of a new facility in Devonport; an absolutely strategic operation then, as Princess itself confirms: “ it iwll help support these plans and reinforce the unique national and international marine capabilities that reside in Plymouth and the wider SouthWest region”.

KPS’ investment will accelerate Princess’ growth trajectory and fund numerous investments for its future. We look forward to working with Princess’ existing stockholders, Chief Executive Officer, Antony Sheriff, the senior leadership team, and the talented employee base at Princess Yachts”.

Antony Sheriff, Chief Executive Officer of Princess Yachts, adds: “We are thrilled to partner with KPS for this exciting new chapter for Princess Yachts. KPS and the Princess Yachts team are deeply committed to investing in the Company’s future while continuing to further strengthen our portfolio of best-in-class motor yachts.

With a current order book nearing a record $1 billion and many model lines sold into 2025, we have never been in a stronger commercial position. Together with KPS’ tremendous track record of manufacturing excellence and investing in leading brands, we are now positioned to take Princess Yachts to the next level of industry leadership in quality and innovation. Under KPS’ ownership, we will accelerate a range of growth and operational initiatives to build upon our long and successful history.”

It goes without saying that, at a time in history marked by great uncertainty, this acquisition lays a solid foundation for the future of Princess Yachts, which will be able to quickly return to meeting the needs of its customers from around the world.

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By SuperyachtNews 14 Feb 2023

Princess Yachts sold to US investor

Britain’s largest luxury yacht builder has been bought by a us-based private equity firm ….

Plymouth-based Princess Yachts , the UK's largest luxury boatbuilder, has been sold to KPS Capital Partners, a US-based private equity firm. L Catterton, the previous private equity owner, put Princess up for sale in 2022 and reportedly hired bankers at Macquarie to find a buyer. In February 2023, Princess confirmed that KPS had entered into a definitive agreement to acquire a controlling equity interest in the business.

KPS is a New York-based private equity giant with approximately $14.4 billion of capital under management, as of September 2022. It makes controlling equity investments in manufacturing companies in North America and Europe. In 2019, KPS acquired the fitness equipment business of Brunswick Corporation, including the Life Fitness brand, for $490 million in cash.

Existing shareholders will retain ownership in Princess, with the transaction expected to be completed in the first quarter of 2023. Princess had previously announced expansion plans in the South West region of the UK, as part of the successful bid by Plymouth city council to create a freeport. The company believes that the new investment from KPS will help support these plans and reinforce the unique national and international marine capabilities that reside in Plymouth and the wider region.

The Princess business was founded in 1965 and distributes through a 50-strong global network. It had been backed by L Catterton and its predecessor entity since 2008. KPS's investment in Princess will accelerate the company's growth trajectory and fund numerous investments for its future. Ryan Harrison, a partner of KPS Mid-Cap Investments, says, "We are excited to make this significant investment in Princess Yachts, a leading company in the luxury global yachting industry with an iconic brand grounded in the British tradition, a remarkable and growing product range, and world-wide reputation for quality and innovation."

Antony Sheriff, Princess Yachts' chief executive, adds, "We are thrilled to partner with KPS for this exciting new chapter for Princess Yachts. KPS and the Princess Yachts team are deeply committed to investing in the company's future while continuing to further strengthen our portfolio of best-in-class motor yachts. With a current order book nearing a record $1 billion and many model lines sold into 2025, we have never been in a stronger commercial position."

The partnership with KPS gives Princess Yachts access to KPS's manufacturing expertise and its experience investing in leading brands. This is expected to help Princess accelerate a range of growth and operational initiatives to build upon its long and successful history. KPS's investment in Princess Yachts is a testament to the company's strength, quality, and innovation in the luxury yacht industry. It also reflects the growing confidence in the superyacht market, as seen by the increasing number of investments in this sector.

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