According to the Financial Times, the price paid for Bavaria is €1.3bn, some five times the company's annual revenues of €271m for the year ended July 2006. And at a multiple in excess of 16 times the most recently filed earnings figure of €79m on earnings before interest, tax, depreciation and amortisation (EBITDA), the Bavaria deal demonstrates just how much the boating industry has become the darling of the investment community, starting last year with Candover's extraordinary purchase of 70% of the Ferretti Group for €1.7bn.

Bavaria says in addition to developing the Giebelstadt location, it’s planned to expand the international dealer network and to open up new markets abroad.

The company’s current management team, with general manager Rudolf Müller and sales director Mike Reuer, will continue to operate the company in the short term.

On completion of the acquisition – scheduled for July 31 - Winfried Herrmann will withdraw from active management and assume a role on the advisory board.

Bavaria is one of the largest yacht manufacturers and operates one of the world’s most effective production facilities. In the fiscal year 2005/2006 the company produced about 3,500 yachts at its location in Giebelstadt with a staff of approximately 620, and had sales of approximately €271m.

Completion of the sale is contingent upon regulatory approvals by antitrust authorities.