Irvine Group Chosen : Hobie Cat Firm Sold; Employee Bid Dashed

The parent company of the Oceanside-based manufacturer of world-famous Hobie Cat sailboats has signed a letter of intent with an Orange County group to sell the firm.

The agreement by Irvine-based Evergreen Partners to buy Coast Catamaran Corp. apparently dashes the hopes of Coast employees, who had proposed buying the company themselves. But Evergreen said Tuesday there is no plan to move the firm elsewhere.

Coleman Co., Coast’s Wichita, Kan.-based parent, did not say how much Evergreen, an investment banking partnership, has agreed to pay for Coast. Led by George Pennington of Newport Beach, Evergreen will take over by the end of this year if the deal goes through, Coast General Manager Doug Campbell said Tuesday.

Lay-offs Not Ruled Out

Pennington did not rule out possible lay-offs.

“The company is not running as efficiently as it has in the past,” he said. Describing Evergreen as a private partnership, Pennington declined to give details of his other business activities.

Coast employs 140 workers at its 30-acre Oceanside manufacturing plant and headquarters on Oceanside Boulevard. There, the company produces a line of twin-hulled, fiberglass-bodied sailboats known to sailing enthusiasts the world over. The company also operates a manufacturing plant in southern France.

The Coast employee bid was one of 47 that Coleman received after announcing in July that the recreational boat manufacturer was on the block. Explaining its decision to sell, Coleman said Hobie has been hurt in recent years by the industry-wide decline in sailboat sales. Coast’s sales peaked in 1981 at more than $31 million but have dipped to about $20 million.

Sale Price Not Told

Campbell, the employee group’s leader, would not disclose the dollar value of the group’s bid.

Oceanside aided the employees last month by authorizing as much as $20,000 in city funds to pay for a feasibility study of the purchase. City officials justified the grant by saying it might help keep jobs and the well-known Hobie Cat name in Oceanside.

Campbell said he and other employees were disappointed by losing out to Evergreen but they knew their chances were slim.

“I knew we had tough competition and that there was no more than a 20% to 30% chance to get it,” Campbell said. Asked whether he planned to remain with the company after the change in ownership, Campbell said, “That depends on whether Evergreen wants me and under what conditions.”

Oceanside Mayor Larry Bagley was not available for comment Tuesday. City spokeswoman Janet Martin said she was unable to determine late Tuesday how much of the $20,000 had been spent.

Co-founded in 1968 by entrepreneur Hobie Alter, Coast was acquired by Coleman in 1976 for $3.2 million. The company’s boats range from 14 feet to 21 feet and sell for $3,000 to $8,000.