US satellite navigation manufacturer Garmin is in talks to buy UK marine navigation manufacturer Raymarine.
Raymarine released a statement following a weekend of press speculation, which confirmed that it is ÔÇ£in┬ápreliminary discussions┬áwith a number of parties, including Garmin,┬áwhich may or may not lead to a sale of the Company.ÔÇØ┬á
Portsmouth, UK-based Raymarine is one of the world's best known marine electronics firms, supplying GPS, autopilot, chartplotting and fish-finding technology.
Its products were famously used by British yachtswoman Ellen McArthur in her round-the-world voyage.
However, the company has recently suffered from a decline in the leisure boat market as a result of the global financial crisis. It has been in refinancing discussions with its lenders since the beginning of this year.
Analysts have estimated that a bid of around £20 million could be sufficient to secure the deal.
Kansas, US-based Garmin already has a foothold in marine navigationÔÇöone of its major business segmentsÔÇöso acquiring Raymarine, which dominates its market, could offer the US company major value in terms of branding and market share. The acquisition would add around $130 million to GarminÔÇÖs annual sales.
RaymarineÔÇÖs statement concluded: ÔÇ£The Company continues to explore┬áa┬ásale of the business┬áor┬áan┬áequity fundraising┬áand, in the absence of either of these,┬áto secure additional medium term debt facilities with its banking syndicate.
ÔÇ£The Board notes that, at this stage, there can be no certainty┬áthat an offer will be made nor as to the terms on which any offer might be made.
ÔÇ£At present, it┬áis not known whether any offer will┬áprovide any┬ávalue┬áfor┬áordinary shareholders.ÔÇØ
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