ShoreMaster, a maker of docks and boatlifts based in Fergus Falls, Minn., has been sold to a Chicago private equity firm for $13 million in cash and an as-yet-undetermined amount of working capital, according to deal terms disclosed Monday.
ShoreMaster CEO Don Hurley said the 125-employee company, which has been downsizing over the past two years, will remain in Fergus Falls, and focus on its core products — docks and aluminum boatlifts, which the company invented 40 years ago.
“The deal is good for employees, it’s good for our customers and it’s really good for the Fergus Falls community,” Hurley said in an interview.
He said no further cuts in employees are planned. “We really have done all that,” he said. “We kind of right-sized the company ... we have got it right where we want it.”
The company has closed plants in Missouri and Florida that it earlier acquired from other companies, and a recreational products subsidiary was sold in January 2012. ShoreMaster’s sale price reflects a $4.6 million December write-down in its value.
On Friday, Otter Tail Corp. of Fergus Falls, the parent company of Otter Tail Power, announced the sale of its ShoreMaster subsidiary to High Street Capital. The deal terms were disclosed Monday with Otter Tail’s annual financial results.
Otter Tail reported $39 million in 2012 net income from continuing operations, but a $5.3 million loss when discontinued operations, including ShoreMaster, are counted. The company sold a wind tower manufacturing unit and a health services company in 2012, and trucking and food-ingredient businesses in 2011.