Before things can really start moving again for Bavaria Yachtbau (Giebelstadt / Germany; www.bavariayachts.com), which is Germany’s largest manufacturer of sailing yachts and motor boats, there needs to be a slimming-down phase – see Plasteurope.com of 21.09.2018 – but not in manpower terms. To carry out restructuring after the conclusion of its takeover by a private equity fund advised by Capital Management-Partners (CMP, Berlin / Germany; www.cm-p.de), CMP will invest an undisclosed amount in Bavaria – including for initially anticipated losses.

A company spokesman told Plasteurope.com the estimated production output is at between 400 and 500 boats in the first 12 months. Around 60% of these would be sailing yachts and 40% motor yachts. Based on this, Bavaria is expecting a loss in the short financial year up to 1 August 2019, but aims to break even for the first complete financial year up to 31 July 2020.

On the production side, CEO Erik Appel wants to reduce Bavaria Yachts’ current portfolio from 26 models of sailing and motor boats to 10-12 models within the next three years. At the same time, the German ship maker will recall orders given to two smaller Croatian shipyards and bring them back to Giebelstadt. The idea is to build 100% of Bavaria’s boats in Germany. Appel is supported in the restructuring by CMP partner Ralph Kudla, who recently replaced interim managing director Tobias Brinkmann as chief restructuring officer (CRO).

While implementing these measures, the company has no intention to reduce its workforce of 800 employees, which includes its French company, Bavaria Catamarans. On the contrary, Appel is looking to employ more staff on a permanent basis and fewer on a temporary basis – particularly because technical development activities, which were largely outsourced, are to be brought back under the company's roof. In the course of this, the French catamaran shipyard will be given back its old name, Nautitech. Apart from reducing the model portfolio, the company intends to cut the number of new product launches to no more than two or three a year, which is far fewer than before.