Bavaria Yachts: A Look At Their Ship Building Locations

Bavaria Yachts are built in Giebelstadt, Germany. The company, Bavaria Yachtbau, was founded in 1978 and has since become one of the world's largest yacht manufacturers, producing around 4,000 yachts a year. The yachts are built in a plant spanning 200,000 square metres, employing around 700 people.

Bavaria Yachtbau's history

Bavaria Yachts, one of the world's largest production boatbuilders, was founded in 1978 by Winfried Herrman, a window manufacturer, and Josef Meltl, a yacht charter broker. By 2006, the company had grown to produce approximately 3,500 sailing and motor yachts a year and employed 600 people. The company is based in Giebelstadt, Germany, and is one of Europe's largest yacht manufacturers and the biggest yacht yard in Germany.

In June 2007, the US private equity investor, Bain Capital, acquired the company from the founders for an estimated price of between 1.1 and 1.3 billion Euros. However, after the market crash of 2008, Bain Capital transferred control to US private equity investors Anchorage Advisors and Oaktree Capital Management, which each took 45% of the shares in October 2009.

In August 2010, Jens Ludmann was named spokesman of the management board. In April 2013, Constantin von Bülow, a senior vice president of Oaktree Capital Management, became the new CEO of Bavaria. In July 2014, Bavaria Yachtbau expanded its product portfolio by buying the French catamaran producer Nautitech Catamarans. On 7 January 2015, Lutz Henkel joined as the new CEO, replacing Constantin von Bülow, who became chairman of the board.

In April 2019, after facing financial troubles and filing for bankruptcy in 2018, a new investor, Capital Management-Partners GmbH (CMP), officially acquired Bavaria. The new management team includes Michael Müller and Marc Diening as CEOs.

Today, Bavaria Yachtbau GmbH has about 600 employees in Giebelstadt, with 150 people working in the administration department. The yard in Giebelstadt is more than 656,000 square feet, with approximately 230,000 square feet of production area. The company has over 45 years of experience in boat-building and has built over 42,000 sailing yachts and motorboats, delivering perfection through the expertise of its 700 employees.

The company's financial woes

Bavaria Yachts, one of the world's largest yacht manufacturers, has experienced significant financial woes in recent years, leading to a filing for bankruptcy in 2018. The company's financial troubles can be attributed to various factors, including:

US Investors Withdrawing Support

In 2018, US investors Oaktree Capital Management and Anchorage Advisors pulled their support from Bavaria Yachts, leading to the company's declaration of insolvency. This move came as a shock to the industry and left dealers and suppliers surprised. The insolvency primarily affected the manufacturing of Bavaria monohulls, while the catamaran division, Bavaria Catamarans (formerly Nautitech), remained unaffected.

Expansion into Larger Yachts

Bavaria Yachts' expansion into larger yachts, such as the launch of the C57 and C65 models, contributed to its financial woes. The company faced challenges in producing these larger yachts, including subbing out work to other places, which resulted in higher expenses than anticipated.

Quality Concerns and Warranty Issues

There have been concerns about the quality of Bavaria yachts, with some customers reporting issues such as electrical problems and leaks. These issues have led to warranty claims and repairs, impacting the company's finances. In the case of Bavaria Yachts USA, LLLP, the regional exclusive dealer went bankrupt due to the high cost of warranty repairs, which exceeded the manufacturer's discount provided to cover such costs.

Operational Changes and Restructuring

To address its financial difficulties, Bavaria Yachts made several operational changes and implemented a recovery plan. The company reduced its model line-up from 26 to 10-12 models, aiming to streamline production and improve efficiency. They also relocated their R55 motor yacht manufacturing operation from Croatia to Germany. Additionally, Bavaria Yachts transitioned from shorter production hours during the bankruptcy period to full-time hours and increased their full-time staff while reducing reliance on casual workers to cut costs.

Impact on Dealers and Suppliers

The financial woes of Bavaria Yachts had a significant impact on its dealers and suppliers. The company changed many long-standing dealerships, and there were concerns about warranty claims and repairs. The USA exclusive dealer, Bavaria Yachts USA, LLLP, filed for bankruptcy due to the high cost of warranty repairs and alleged that Bavaria Yachts took steps to force them out of business.

Despite these financial woes, Bavaria Yachts has continued to operate and work towards recovery. In September 2018, Capital Management-Partners GmbH (CMP) acquired the company as a new financial investor, and the new management team has worked to improve efficiency, quality, and dealer relationships.

Yacht models and features

Bavaria Yachts, one of the world's largest production boatbuilders, produces a range of sailing and motor yachts. The brand offers 27 models currently in production, ranging from 9 to 18 meters in length. The current model range includes eight lines: C-Line, Cruiser Line, R-Line, S-Line, SR-Line, Vida Line, Virtess Line, and Vision Line.

The Cruiser Line is a popular choice for sailors, offering strong, safe, and comfortable vessels at unbeatable prices. The Cruiser 40 S, Cruiser 41 Style, and Cruiser 51 Style are some of the models in this line. The Cruiser Line has a traditional aft cockpit layout and includes sailing yachts ranging from 30 to 65 feet in length.

The Virtess Line has also received recognition, with the Virtess 420 Fly being named "Yacht of the Year" in 2013. This model, with its sleek and modern design, showcases the shipyard's expertise in motorboat construction.

In addition to the Cruiser and Virtess Lines, Bavaria Yachts also offers a diverse selection of models in their other lines. The C-Line, for example, includes the C38, C42, and C57, ranging from 37.4 to 54.9 feet in length. The S-Line features models such as the S29, S30, and S33, which are more compact yachts ranging from 28.9 to 33 feet in length.

Bavaria Yachts also expanded into the catamaran market with the acquisition of Nautitech in 2014. This addition to their portfolio includes catamarans ranging from 40 to 54 feet in length, such as the NAUTITECH 40 OPEN and the NAUTITECH 541 | 542.

Overall, Bavaria Yachts cater to a wide range of sailors, from beginners to experienced enthusiasts, by offering a diverse selection of models that vary in size, features, and price.

German engineering and craftsmanship

The company's shipyard in Giebelstadt, Franconia, is a bustling hub of activity, employing around 700 people. Here, the magic happens, as skilled artisans and engineers work tirelessly to create exquisite sailing and motor yachts that embody the essence of Bavaria: the joy of yachting.

Bavaria Yachts are renowned for their attention to detail and use of the finest materials and equipment. Their yachts offer modern designs, powerful and safe driving characteristics, and ample space for unforgettable experiences on the water. The C-LINE and CRUISER LINE sailing yacht series cater to every sailor, with customised configuration options and a wide range of motorboats to meet the highest demands at sea.

The construction of a Bavaria yacht is a meticulous process that combines traditional craftsmanship with modern technology. The hull and deck, for instance, are constructed using a sandwich construction technique with foam inserts, reinforced with aluminium plates where fittings are mounted. This ensures the perfect balance between solid wood and robust laminates, resulting in exceptional sea behaviour and sailing characteristics.

Bavaria Yachts' commitment to German engineering and craftsmanship extends beyond their yachts. The company actively supports young boatbuilding trainees, donating a new set of sails to the state vocational school for boat builders in Lübeck-Travemünde. This generosity reflects Bavaria Yachts' deep-rooted connection to the art of boat building and their desire to nurture the next generation of talented craftsmen and women.

The company's acquisitions

Bavaria Yachts has undergone several changes in ownership since its founding in 1978. Here is a detailed overview of the company's acquisitions:

Bain Capital Acquisition

In June 2007, the US private equity investor Bain Capital acquired Bavaria Yachts from its founders, Winfried Herrman and Josef Meltl. The transaction was estimated to be between 1.1 and 1.3 billion Euros. However, the exact price was not disclosed.

Anchorage Advisors and Oaktree Capital Management

Following the market crash of 2008, Bain Capital transferred control of Bavaria Yachts to two US private equity investors, Anchorage Advisors and Oaktree Capital Management. This transition occurred in October 2009, with each investor taking 45% of the shares.

Nautitech Catamarans Acquisition

In July 2014, Bavaria Yachtbau expanded its product portfolio by acquiring the French catamaran producer Nautitech Catamarans. This acquisition allowed the company to enter the growing catamaran sector.

Bankruptcy and CMP Acquisition

On April 20, 2018, Bavaria Yachts filed for bankruptcy as investors withdrew their support. This led to the company seeking new investors to stabilize its operations. On September 16, 2018, Capital Management-Partners GmbH (CMP), a German investment company, officially acquired Bavaria Yachts as a new financial investor. CMP specializes in acquiring distressed companies and has a strong focus on restructuring and operational management.

Recent Developments

As of April 2019, Dr. Tobias Brinkmann of Brinkmann & Partner, Hamburg, appointed a new investor as the insolvency administrator for Bavaria Yachtbau GmbH and Bavaria Catamarans. The new management team of the restructured Bavaria Yachtbau GmbH includes Michael Müller and Marc Diening as CEOs.

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