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note PLASTICS NEWS -- Consolidations form top kayak companies New

Forum: BoaterTalk
Date: Aug 19 2004, 21:19 GMT
From: critters51


By Matt McClellan
PLASTICS NEWS STAFF

EASLEY, S.C. (Aug. 9, 11:30 a.m. EDT) -- There are three major players in  the kayak industry: WaterMark, Johnson Outdoors Inc. and Confluence  Watersports. These companies are the result of a flurry of consolidation  that saw many established, familiar names come under new ownership.  WaterMark, an investment partnership based in Easley, S.C., owns high-end  kayak maker Perception, as well as Dagger, which has been around since 1988.   Perception´s diversity has won it the respect of its competitors.  "A company like Perception, they're doing composite, thermoforming and  [rotational molding] plastic," said Jeffrey DeSantis, president of rival  Walden Kayaks.   "Perception has been around for 28 years. They were the first company to  successfully rotomold plastic kayaks," said Bryon Phillips, spokesman for  Liquidlogic LLC, a kayak maker in Flat Rock, N.C. "Not [the first] to  rotomold plastic kayaks, but to be successful at it," he qualified. After  the company was purchased by WaterMark in 1998, Phillips and several of his  co-workers left Perception.   "The consolidation was the catalyst for us [to start Liquidlogic]," he said.   "The bigger the company gets, it becomes very hard to react in the right way  to changes." WaterMark employs 300 and is No. 15 in Plastic News' North
American rotational molders ranking with estimated sales of $30 million.   The consolidation led to many changes in order to reduce competition between  sister companies. "Dagger gave up canoes. [Perception is] concentrating on  hybrid composite boats," said Chris Mitchell, executive director of the  Trade Association of Paddlesports in Olympia, Wash.  Trinity, N.C.-based Confluence Watersports formed in October 1998 when it  bought Wilderness Systems and Mad River Canoe, at the time the third-largest  manufacturer of kayaks and the second-largest maker of canoes in the United  States.
Over the last six years, Confluence has acquired a foothold in every  dimension of the water recreation market. Its Wilderness' WindRider division  makes trimarans. Mad River, a 33-year-old canoe company, bought Voyageur, a  maker of paddle sport accessories, in 1990. In 1999, Confluence acquired  Wave Sport, a 15-year-old company specializing in whitewater kayaks, to  complement Wilderness' line of recreational and touring kayaks from PE and  composite construction.   Johnson Outdoors owns 14 companies, including Old Town, Dimension, Ocean  Kayak, Necky Kayak and Carlisle, a company that makes paddles. Old Town is  known for its canoes, but also makes high-end touring and recreational  kayaks. Ocean Kayak has been making sit-on-top kayaks since 1971 and  Dimension sells sit-on-tops and traditional recreational/touring kayaks.
Necky has a full line of kayaks.   Johnson is publicly held. It is part of the Racine, Wis.-based Johnson  family empire, which includes S.C. Johnson & Son Inc.   Kayaks are a small part of Johnson Outdoors, which employs 1,500 and  reported annual sales of $315.9 million in 2003.  
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