NEWS UPDATE - Riviera Group now viable and for sale

Australia’s largest luxury boatbuilder, Riviera says it has enjoyed considerable sales success in the weeks following the Sydney International Boat Show that concluded earlier this month.

Over the five days of the Sydney Boat Show, the company reported the sale of eight new luxury boats across its Flybridge, Sport Yacht and Offshore Express ranges.

In the three weeks immediately following the Sydney show, Riviera said it contracted a further seven boats and expects to more than double the Sydney show sales for the month of August for the Australia/New Zealand region. This will be the strongest sales month for this region in the past 12 months, said the company.

Riviera CEO, John Anderson said: “These strong results were the rewards of continued investment in new-model development and current-model innovation driven by listening closely to our owner’s feedback and future needs. This result clearly demonstrates Riviera’s market leadership position, even in these challenging market conditions.

“The current level of sales activity and enquiry is certainly a clear indication to us that the Riviera brand and product remain the choice for Australian boating enthusiasts.

“Over the past three months, Riviera has received a great many expressions of support from our family of owners around the world. Their commitment and belief in our brand gives us enormous encouragement and I believe this is reflected in our current sales success,” said Anderson.

Significant restructuring of the Riviera business has been undertaken by Deloitte since their appointment as receivers in early May 2009. Riviera said that given the achievements made in the restructuring process, the recent rise in sales volume and the improving outlook, the receivers have now formerly commenced the expressions of interest process for parties interested in acquiring the assets and business of the Riviera Group.

Deloitte partner, Chris Campbell said: “To date we have received a significant level of enquiry regarding Riviera from both local and overseas parties.

“We are also seeking expressions from parties who may be interested in acquiring the assets and business, providing new equity and/or effecting a financial restructure of Riviera. A detailed Information Memorandum on the business opportunity has been prepared and the process being run is subject to interested parties executing a confidentiality agreement,” he said.

For interested parties contact, Tony Garrett or Patrick Brothers, Deloitte Corporate Finance Pty Ltd, Grosvenor Place, 225 George Street,Sydney, NSW, 2000, Australia, phone (02) 9322 70000, fax (02) 9254 1100.