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As promised, I took some time to check in with Bill Yeargin about the recent acquisition of Pleasurecraft Engine Group by Correct Craft, as well as the other recent happenings within Correct Craft and its companies. It is always interesting to hear Bill's thoughts! Thanks, Bill, for taking the time to answer these questions.PN: Wow, this is some exciting news! Two major players in the watersports industry coming together like this can only be good for both companies. You mentioned in your recent blog about this acquisition that Correct Craft and PCM had been in discussions about this for a long time. Why is now the right time for this to happen?
BY: Jeff, from a big picture view we have been looking for potential Correct Craft acquisitions for a while. We had a little trouble finding the right deal so a couple years ago we decided to focus on the cable business and formed Aktion Parks. Aktion acquired Orlando Watersports Complex (OWC) and will soon be opening Miami Watersports Complex (MWC). While we are committed to building Aktion we also want to look for non-cable deals.
PCM and Crusader are exactly the type of companies we want to acquire; great products, great service, great culture and great people. We had been discussing it for years but this summer I was with Chuck Thurman (President of PCM and Crusader) and Paul Fletcher (previous owner of PCM and Crusader) and we decided the time was right.
As it relates to why now I want to give a lot of credit to the previous owner of PCM and Crusader Paul Fletcher. Paul was looking for a buyer who would build on the outstanding work he has done and protect both the PCM and Crusader culture and employees. He believed selling to Correct Craft was the best way to do that and I appreciate and respect his trust. I will do my best to be sure we make him happy he sold to us.
PN: Sometimes people still get confused on who the players are and particularly the difference between Correct Craft and Nautique. Can you clear that up?
BY: Sure Jeff, I am CEO of Correct Craft which is the parent company of the other entities. Nautique is our boat company, Aktion is our cable company (which owns OWC and MWC) and PCM and Crusader are our engine companies. So, just for clarity, Nautique did NOT acquire PCM and Crusader, Correct Craft did. Nautique, PCM and Crusader are sister companies who happen to have the same owner.
PN: Are you looking to make more acquisitions?
BY: Absolutely. However, I cannot say much more about this other than I am working on it and we have deals being negotiated. We might even be able to announce another one by year-end.
PN: OK, back to PCM and Crusader… How does this purchase help Correct Craft?
BY: It helps us in lots of ways, Jeff. But, first and foremost it is a solid organization with the attributes we look for in an acquisition; great product, great service, great people and great culture. I have told many people since the announcement that we did not acquire PCM because we want them to be different we acquired them because we appreciate who they are.
PN: Are PCM and Crusader employees happy about the sale? Were they excited about this news?
BY: Jeff, I had the opportunity to be at PCM and Crusader when the employees were told about the deal. Chuck and Paul handled it really well and explained why they thought it was the best decision long-term for the employees and the company. While the employees clearly love Paul and were sad to see him leave they also trusted that he had their best interests in mind and that he was doing what was best for the organization long-term.
Also, we were not strangers to the PCM team. We have done business with them for decades and they know us well.
PN: Many people have openly wondered what this purchase means for watersports boat manufacturers other than Nautique who currently use PCM engines. Will PCM continue to supply them with engines if they desire? Do you expect Correct Craft’s purchase of PCM to affect PCM engine sales to these other companies?
BY: PCM and Crusader have wonderful loyal customers in addition to Nautique and the PCM and Crusader team works hard to keep them happy. I told Paul Fletcher when we initially discussed this deal that it was our desire to continue to build those relationships and keep those customers happy. From my seat as CEO of Correct Craft they are customers of one of our companies and customers are important to us.
So, for complete clarity, yes we plan to continue offering engines to others in our industry, even those who compete with Nautique. And, out of respect for those customers we plan to be sure the PCM and Crusader branding promotes all of our customers and is not biased toward Nautique.
PN: Do you have any plans to move any of the PCM or Crusader operations to Orlando?
BY: No, none at all…
PN: One very interesting question I have heard asked is related to Correct Craft’s ownership of Crusader Engines. These engines, other than the ones currently being used in the Coastal Edition Nautiques, aren’t exactly designed for ski and wake boats. Does Nautique have plans to build other boats that these engines may be a better fit for? Or maybe there’s a bigger question to be asked here. Is Correct Craft thinking of starting another boat company geared more toward a different type of boating?
BY: Jeff, Crusader is one of the most respected names in the marine power industry and, you are right, they have traditionally built an engine for larger boats than those in the towboat segment.
However, as you also point out, Nautique has used Crusader engines in our Coastal Edition boats for many years and we have been very happy with them.
Also, as many of your members know, Crusader has recently developed its own line of inboard towsport engines called the Challenger series. These Challenger engines are excellent engines currently being used by other boat companies in our industry. We expect to grow this brand and continue to provide the excellent product and service people have come to expect from Crusader.
Finally, I mentioned we are working on some acquisitions but we do not currently have any plans to start a boat company that would use Crusader engines.
PN: How does this purchase affect dealers who do not sell Nautique boats, but do sell and service PCM engines? Any changes there?
BY: No changes there…
PN: Other marine engine companies are coming out with new engines that have some pretty interesting specs. What can you tell us about PCM’s plans for the future, and how will those plans stack up against the competition?
BY: Jeff, I would make a lot of our PCM and Crusader teams unhappy if I revealed their future product plan in this interview! However, I will tell you this, the future is VERY exciting and PCM and Crusader will soon separate themselves even further from the competition. It will soon be even clearer than it is today that PCM and Crusader are the top two engines in our industry.
PN: Will Correct Craft’s ownership of PCM change the pricing to the consumer on new Nautique boats?
BY: We do not expect the acquisition to impact pricing either direction. PCM and Crusader are separate businesses from Nautique who just happen to be owned by the same company as Nautique. The team at PCM and Crusader will continue to produce the best product at competitive prices.
PN: Let’s change the topic to some other items, if you don’t mind. There have recently been a number of other interesting things going on at Correct Craft, Aktion and Nautique. First, can you tell us a little about the recent Nautique Cares trip to El Salvador?
BY: Sure… As you know, Jeff, the service trips we take each year have become a very important part of who we are. Over the past eight years we have taken numerous service trips and served in places like Ethiopia, Kenya, Uganda, India, the Dominican Republic, Guatemala, Nicaragua, Mexico and the Apache reservation.
We have taken many, many employees on these trips but on our most recent trip we had several of our dealers and athletes come along. We took Andy Mapple, Rhoni Barton Bischoff, Nate Smith, Zack Worden, Raimi Merritt, JD Webb, Bob Soven, Mike Dowdy, and Tommy Czeschin. This was a special trip because the athletes dealers who went not only had a chance to impact the lives of people who need help in El Salvador but were also significantly impacted themselves.
Jeff, we are 100% committed to not only building the world’s best boats but also using our resources to help people around the world. Another way we are doing this is through donation of a Super Air Nautique G21 to As Our Own, an organization in India that is helping young girls. Planet Nautique members can have a chance to win the G21 we donated by contributing $100 to As Our Own. It is a great organization. Anyone interested can go here http://bit.ly/1hZstvz.
PN: The US Open of Water Skiing also happened this past weekend, and it looks like it was a great event! I wasn’t able to attend, but I did watch a good part of it live on the web. It looked like lots of fun! Is this an event that Nautique will continue to sponsor going forward?
BY: Absolutely! It was a great weekend with great competition pulled by the world’s best ski boat, the Ski Nautique.
The Ski Nautique has defined itself as clearly ahead of the competition. As you know it was recently selected to be the exclusive boat of the water ski world championships. Since its introduction the Ski Nautique 200 has double the world records of every other boat, combined. At a recent professional event in California the skiers could choose the boat they wanted and 22 of 24 skiers chose the Ski Nautique. There really is no more debate in the water ski world, the Ski Nautique is clearly the best and athletes love events like this past weekend’s US Open where they can compete behind it.
PN: What about wake events? There seems to be a lot of change happening with them.
BY: We have not yet finalized our 2015 event schedule but we are committed to our wake events. We are also committed to our events being inclusive of both men and women, young and not as young, and pro and amateur. Others may pull back but we are going to do our best to give people who enjoy wakeboarding and wakesurfing an opportunity to test their skills at events and also view the best wakeboarding and wakesurfing on the planet behind the planet’s best wake boat!
PN: Speaking of the planet’s best wake boat… What are your future plans for the G-Series boats?
BY: Jeff, we are committed to improving and innovating all of our products including the G-Series.
Our product development team has had an amazing run the past few years with the G-Series (G21, G23 and G25), Ski Nautique, Sport Nautique, and all new 210 and 230. The great product was a big reason the past few years we have won most all of our industry’s top awards including Boat of the Year, Wakeboard Boat of the Year, Wakesurf Boat of the Year, Innovation of the Year, Most Innovative Product, Manufacturer of the Year, Customer Service Awards and more. So we understand the importance of improving our products and being innovative.
We have an exciting product development plan and we can’t wait to roll it out!
PN: We hear often of other boat manufactures wanting to target the G-Series and even some saying they want to develop a “G killer”. Does that bother you?
BY: No, not at all… In the past two years the G-Series has won Boat of the Year, Wakeboard Boat of the Year, Wakesurf Boat of the Year and Most Innovative Product so I don’t blame them for targeting us. However, despite their efforts no one has gotten close and by the time they do we plan to be on to something even better. We consider their focus on trying to stop us a compliment.
PN: We are all interested in what is coming; can you give us a peak into the future?
BY: We are always looking into the future. We have a rolling five year product plan that drives our product development and all of our companies are Strategic Plan driven. We will always be improving our product.
Right now is a unique time because we are just ending our most recent four year Strategic Plan and finalizing another that will begin January 1. We are also looking at our organization and how we will be structured with the new companies coming aboard. So, it is a fun time with new goals and lots to do!
The one thing you can count on Jeff is that we will continue to innovate and lead our industry. We will also ensure we have the highest quality product in the market.
PN: It seems you have been pretty busy. How much time do you get on the water?
BY: Jeff, boating and watersports have been a part of my life since I was a teen so I make them a priority still today. I try to get on the water at least once a week at either OWC or at home behind my Nautique. At OWC I tend to wakeboard and at home behind my Nautique I tend to wakeskate or wakesurf. I love being either place!
PN: You mentioned your Nautique. What model do you own?
BY: I own a 2014 Super Air Nautique 210. As you know the 210 was all new in 2014 and I love it! The wakeboard wake is great and the wakesurf wave is incredible! Someday I will get a G boat since I like to switch models from time to time but I could not be happier with my 210.
PN: Before we finish, I know you have been doing a lot of work in Washington DC. Can you update us on that?
BY: Well, Jeff, I never considered myself a Washington DC type of guy but that changed about three years ago and because of a strange chain of events I now find myself making a few trips a year there. The short version is that a trip to Korea led to the Korean ambassador visiting Correct Craft which led to an Oval Office meeting with the President which led to me being appointed to a council of business leaders who advise the US Secretary of Commerce.
So, I have been working with some REALLY smart business leaders to advise the Secretary of Commerce on ways we can ensure the US stays competitive on the global stage. We have primarily been focusing on export barriers, taxation, energy, innovation and workforce issues. It has been fun.
PN: Anything else you would like to add?
BY: As always I would like to thank Planet Nautique members for their loyalty. We do not take it for granted and are committed to doing everything we can to continue deserving it. And, we hope everyone will come by and see us when they are in the Orlando area. We give tours every day and would love to meet anyone who is a member of Planet Nautique. But, again and most importantly, I would like to thank you and your members, we appreciate you all.
