Pouschine Cook Capital Management

MasterCraft Boat Company

MasterCraft is the premier manufacturer of 19 to 28 foot water ski and wakeboard boats.  The Company is located in Vonore, TN.

Insight

Pouschine Cook, because of its experience and understanding of premium products sold through dealer networks, was introduced to MasterCraft’s management by a fundless sponsor when it was known that MasterCraft would be sold.  In an industry traditionally characterized by seasonality and cyclicality, Pouschine Cook saw a strong core business complicated by discontinued operations, wakeboarding growth analogous to and following the growth of snowboarding, and a management team with significant potential.

Flexibility

Working with management and the fundless sponsor, Pouschine Cook structured a transaction with attractive compensation for the fundless sponsor. Pouschine Cook significantly incentivized management to grow MasterCraft’s equity value and reduce leverage.

Enhancement

Pouschine Cook worked with management to undertake key strategic steps to grow the business.  These enhancement initiatives included instilling proper corporate governance and communication, reinvigorating the brand position with professional water skiers, and investing in information systems and upgrading business processes.

Despite three declining years of industry-wide boat sales, revenues doubled over four years and EBITDA tripled.

www.mastercraft.com