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A manufacturer of recreational and lifestyle products Brunswick Corporation (BC - Snapshot Report) recently completed the sale of its sportfishing convertible yacht brands, Hatteras and Cabo to Navis HCY Acquisition. Navis HCY Acquisition is an affiliate of Philadelphia investment firm Versa Capital Management LLC.

Brunswick purchased Hatteras Yachts in 2001 and Cabo in 2006 and announced its intention to sell these brands in Jan 2013. Following this divestiture, the company expects to focus on its remaining core yatch brands which now include the Sea Ray and Meridan brands.

The terms of the transaction were not disclosed. However, the two brands will continue to operate from New Bern and retain their current workforce.

Brunswickhas been consistently reviewing and refining its product portfolio and trying to focus its resources on core brands. In Jul 2010, Brunswick sold its Triton Boats to Fishing Holdings, LLC, an affiliate of Platinum Equity. By selling its non-core brands, Brunswick tries to maintain its leadership position in the recreational and fishing boat markets.

Late last month, Brunswick announced its second quarter results. The company delivered an adjusted profit of $1.23 per share in the second quarter of 2013, up 18% from the prior-year quarter. Earnings were also better than the Zacks Consensus Estimate of $1.08 per share by 13.9%.

Revenues in the quarter edged up 4%, led by growth in outboard marine products, marine parts and accessories, fitness equipment and U.S. retail bowling. Improved operating efficiencies and cost reduction measures improved gross margin by 60 basis points.

Despite unfavorable global retail demand trends, Brunswick increased its marketing spending and innovation in the third quarter. Brunswick also lifted its outlook for full year 2013 based on solid second quarter 2013 results, a favorable debt-financing agreement and a lower tax rate. It now expects earnings per share of $2.55-$2.65, up from a previous range of $2.30-$2.50.

Brunswick Corp is best known for making bowling and billiard equipment. However, it has evolved into a much more diverse company with high power brands across several industries; from Life Fitness and Hammer-strength in its fitness division to some of the top names in marine boating like Bayliner, SeaRay, and more. Brunswick also manufactures marine engines and accessories under Mercury, Mariner, and other brands. Brunswick holds a Zacks Rank #3 (Hold).

Other Stocks to Consider

Other leisure & recreational stocks that are better placed and are worth considering are Johnson Outdoors Inc , Smith & Wesson Holding Corp (SWHC - Snapshot Report) and Sturm Ruger & Co Inc (RGR - Snapshot Report), all holding a Zacks Rank #1 (Strong Buy).

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