Malibu Acquires Cobalt Boats

Loudon, Tennessee-based tow boat manufacturer Malibu Boats has struck a deal to acquire Neodesha, Kansas-based Cobalt Boats LLC for $130 million. The transaction is expected to close in early July, subject to customary closing conditions.

Founded in 1968, Cobalt manufactures mid-sized to large sterndrive boats. The company recently expanded into the surf boat market with new models utilizing Volvo Penta’s Forward Drive system, as well as a line of outboard-powered pontoon boats sold under the Market One nameplate. Malibu, founded in 1982, is considered a leader in the tow sports segment with its patented Surf Gate and other innovative technologies.

The final purchase price will be subject to adjustment pending the outcome of an ongoing patent infringement lawsuit between Cobalt and Brunswick Corp. Cobalt took Brunswick to court in 2015, alleging that the Swim Step feature offered on several of the company’s Sea Ray boat models infringes on Cobalt’s patented retractable swim step mechanism.

Cobalt manufacturing is expected to remain in its current facility.