BRUNSWICK CONCLUDES DIVESTITURE OF FITNESS BUSINESS, COMPLETING TRANSITION TO MARINE FOCUS
July 8, 2019
Following the completion of the Fitness business sale to KPS Capital Partners, LP, Brunswick Corporation (NYSE: BC) announced on June 27th that it has initiated a range of measures to streamline its cost structure to support sustained earnings growth and provide continued headroom to fund important product, digital, and growth-oriented business initiatives.
The announcement focuses primarily on completed near-term rightsizing of corporate and enterprise support functions consistent with Brunswick’s new marine-only focus. Details of an additional and more comprehensive set of initiatives will be included in the materials for Brunswick’s second-quarter earnings call scheduled for July 25, 2019.
The completed actions announced June 27 will lower costs on a run-rate basis by approximately $17 million and will begin to provide cost benefits in the second half of 2019. These actions include the elimination of over 100 positions in general and administrative functional support, and the consolidation of two Chicago area office facilities.
In connection with these activities, Brunswick expects to record restructuring charges of approximately $6 million in 2019; with about one half recorded in the second quarter.
“These decisions, many of which will directly affect our colleagues and co-workers, are not taken lightly and we deeply appreciate the commitment and contributions of our employees,” Brunswick Chief Executive Officer David M. Foulkes said. “Throughout the Fitness sale process, we have been thoughtfully planning and preparing for our future as a more focused marine enterprise. With the Fitness sale complete, we believe these measures are necessary to appropriately structure our organization going forward and invest in initiatives to drive growth as we reinforce our commitment to deliver industry-leading technology, service and quality to our customers,” Foulkes added.
