Ocean-going catamarans: Hanseyachts streamlines portfolio and sells Privilège

The timing came as a surprise, but the cut was not. Yesterday evening, Hanseyachts AG announced that it would be disposing of its Privilège catamaran brand as quickly as possible. The basic key points of the sale have already been finalised; only the approval of the employee representatives is still missing. The contract can then be signed as early as July and the spin-off completed by October.

The company, based at Port Olona in Les Sables-d'Olonne, is to be sold "at a symbolic price" to a group of buyers led by long-time boss Gilles Wagner. The investors also include customers of the French shipyard.

In 2019, Hanseyachts was the last major yacht builder to enter the catamaran segment with the acquisition of Privilège - and is now the first to withdraw. In the press release, Hanseyachts CEO Hanjo Runde comments on the decision as follows: "Both companies have learnt a lot from each other. However, as the expected synergy effects could not be realised to the extent hoped for, this strategic step is now the best solution for both sides."

In fact, Privilège has always been a problem child in the Greifswald-based company's brand portfolio. Although Hanseyachts has a lot of experience in the luxury boatbuilding segment with Moody and Fjord, it was never really possible to integrate the French company. The corporate cultures were too different, the distance too great, the systems and production methods too different.

Although top production staff were initially shuttled between Greifswald and Les Sables for months on end and although development was increasingly centralised, things never really ran smoothly until the end. In addition, high investments in the modernisation of the model range had a negative impact on the profitability of the exclusive subsidiary. According to YACHT information, Privilège has never generated a positive contribution margin in the three years since the takeover. Although the catamaran builders have an order backlog of more than 57 million euros and the order book extends to 2024, the decision to separate the two companies seems logical.

In the short term, it will only cause a small dent in the Hanseyachts balance sheet. We are talking about an unplanned one-off expense of EUR 1.5 to 2 million. Turnover will fall by around six per cent in the 2022/23 financial year. At the same time, however, the company expects "the separation of risks to have a positive impact on the Group result".

Hanjo Runde commented: "In future, Hanseyachts will focus on the remaining six brands, which (like Privilège) also have historically high order backlogs and are facing a period of profitable growth."

In an exclusive interview with YACHT yesterday evening, he gave the following classification:

Mr Runde, in our first conversation at the beginning of the year, you said that you saw the broad positioning of Hanseyachts with brands in the yacht, catamaran and motorboat market as a strength and that you wanted to expand the programme even further. What led you to leave Privilège now?

"All of our brands are in an excellent position and I look forward to presenting many innovations in the coming years. Privilège has a completely new model range with the 510, 580 and 650, which is also reflected in the exceptionally good order book. However, Hanse, Dehler, Moody and Fjord have also developed much better than we had planned. We are on the verge of a significant increase in growth and want to become more focussed. We are therefore very pleased that Privilège - which, incidentally, is one of the most traditional catamaran brands in the world - now has new owners who will be able to focus even more intensively on the further development of the brand in future."

If we look at the Hanseyachts brands from the outside, Privilège was the problem child right from the start. What were the reasons for holding on to it for so long?

"It is certainly true that Privilège pursues a different business model than the other brands of Hanseyachts AG. With Privilège, customers often buy two years in advance and construction takes between 9 and 18 months. The construction times are therefore simply longer and the requirements are different. In addition, the catamarans are usually sold directly and not through our trading partners. As a result, I don't see us as a "best owner" and am also focussing even more clearly on our core business."

Competitors from France have been rumouring for months that Privilège is not doing well economically. There was even talk of imminent insolvency. How much did you have to contribute each year?

"The financial implications of the transaction are very straightforward and we have published these in our ad hoc announcement. Privilège is well positioned for the future."

The cat segment is booming, even now. Are you considering serving this market elsewhere - or do you see no room for another player and are leaving the segment behind?

"The catamaran segment has indeed seen significant growth in recent years. We have also taken a close look at this in our strategy process. Whether we are planning anything here will become clear when we present our innovations in the coming years."

A question that comes to mind: Will there be further cuts in the portfolio? So is this just the start of a consolidation or a one-off special case?

"Innovation is at the heart of our new strategy, and our customers can look forward to many new models. After the Hanse 460 - European Yacht of the Year after all - we are currently developing further new Hanse, Dehler and Moody models. A new Sealine is already under construction, and this week I was able to experience our new Fjord, which really impressed me. That was a lot of fun."