PMI HoldCo, Inc. (“PMI” or “the Company”), is a leading boat builder and holding company for Blue Wave fishing and Silver Wave pontoon boats. Over the past 30 years, PMI has successfully designed and launched innovative boats, expanded its dealer network across the Gulf Coast and Mid Atlantic, and grown annual revenue to over $46 million. Located in Seminole, Oklahoma, the Company builds both Blue Wave and Silver Wave boats out of its 160,000 square foot manufacturing facility.
The confluence of the macro environment and elevated inventory levels across the dealership landscape resulted in a sharp decrease in the demand for the Company’s boats and diminished cash flow. Ownership used the industry-wide pause in demand to temporarily furlough its workforce and evaluate operational improvements including strategic changes to its manufacturing process.
Shortly after these efforts, SC&H Capital was retained to find a buyer for the Company that would allow production to resume and return to profitability. SC&H Capital quickly generated interest from dozens of parties, but navigating the lack of production, as well as ongoing litigation with the current and former owners created an incredibly difficult situation for potential buyers to get comfortable with.
Ultimately, the Company was forced to file chapter 7 and SC&H Capital continued its efforts on behalf of the trustee. With an auction scheduled, SC&H Capital was able to qualify multiple bidders and sell the pontoon and center console assets separately to other manufacturers who will continue the brands in their own facilities. The two winning bids maximized recovery for the estate and allowed the trustee to market the real estate, now vacant, over an extended period of time to increase the ability to obtain a premium valuation.
