NEW YORK, February 6, 1998 - Castle Harlan, Inc., the New York merchant bank, announced today the acquisition of Land 'N' Sea, Inc., one of the largest distributors of marine accessories to the recreational boating industry. The purchase price was not disclosed.
Land 'N' Sea, based in Fort Lauderdale, Florida, operates throughout the United States and, through its telemarketing service, has sales worldwide. The company wholesales more than 18,000 products; it also manufactures approximately 1,400 products, which are sold under its own brand, Seachoice, a prominent label in the marine accessories industry.
Land 'N' Sea's inventory includes marine hardware, engine parts and accessories, electrical and electronic components, paint and related items, steering controls and cable systems, safety-related equipment, pumps and plumbing, exhaust and fuel systems.
Justin Wender, a Castle Harlan vice president, noted that the company's sales have grown consistently over the past five years, despite difficult industry conditions in the early 1990s.
"The inevitable increase in leisure time for the large population of 'baby boomers' soon to retire," he said, "suggests that Land 'N' Sea will continue to grow significantly in the years ahead.
"Land 'N' Sea represents an excellent platform from which to build a national, two-step distributor in the recreational boating industry. We expect this growth to be both internal and through acquisitions."
Wender said that the company's senior managers, who will remain in place, participated in the acquisition along with the Castle Harlan investment fund, Castle Harlan Partners III, L.P. The seller was a group of private investors led by an affiliate of BankAmerica.
Castle Harlan Partners III was formed in February 1997 with $630 million in capital commitments from public and private pension funds, university endowments, private foundations and affluent individuals. It has agreed to acquire Tidewater Compression Services, one of the world's largest providers of natural gas compression services, a $360 million transaction. It has completed the acquisitions of Charlie Brown's Inc., a family-style restaurant company; and Matrix Global Investments, a new company formed to invest in money management firms. Matrix has already made one acquisition - Carret and Company, a New York money manager with some $1 billion in assets under management.
Castle Harlan was founded in 1987. The firm is headed by John K. Castle, its chairman and former president and chief executive officer of Donaldson, Lufkin & Jenrette, the Wall Street investment firm, and Leonard M. Harlan, Castle Harlan president, and former chairman and founder of The Harlan Company, a real estate investment and financial advisory firm.
The firm's portfolio companies have included Ethan Allen Interiors, the furniture company; Morton's Restaurant Group, the nationwide chain of upscale steakhouses; Smarte Carte, the leading airport baggage cart rental company, and Delaware Management, a major international money-management firm with assets under management of more than $32 billion. Since its founding, Castle Harlan has completed acquisitions exceeding $3 billion.