CORPORATE STRUCTURE

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When Future Mobility Solutions Ltd (NZX: FMS) arose from the corporate restructure of Sealegs Corporation Ltd (NZX: SLG) in early 2017, it heralded more than a name change. It initiated a global strategy targeted at building shareholder value, accelerating growth and diversifying risk.

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...This was the catalyst for transformation. It began with a name change and strategic acquisitions and is now sustained by a determination to build value as an international marine technology group. In the months following the name change from Sealegs Corporation to Future Mobility Solutions (FMS), the group announced the acquisition of a 70 per cent interest in French boat manufacturer S.A.S. Sillinger, 100 per cent of United States boat builder Willard Marine Inc., and 100 per cent of New Zealand-based Lancer Industries Ltd. These businesses joined FMS’ existing business, New Zealand-based Sealegs International Limited, which was formed in 2000. Both Sillinger and Willard are heritage brands established in the European and US military boat market. Lancer Industries, also a heritage brand, provides Hypalon-designed products to the Asia Pacific marine sector and focuses on oil barges to the rapidly-growing oil-containment business. ​

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Sealegs was ambitious and wanted to achieve more than the incremental change of the previous ten years.
​The opportunity to transform presented upon analysis of the marine-specific challenges it faced.

The international small-boat market is full of small to medium sized manufacturers who build boats for country-specific applications and conditions. There was no internationally dominant manufacturer for Sealegs to partner its amphibious technology with. Sealegs needed to either develop hundreds of relationships to sell its technology or design and manufacture a vast range of models – both would prove time consuming and expensive.

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The board saw this as an opportunity and responded by including an acquisition strategy as part of its transformation. In acquiring international boat builders, Sealegs could accelerate its growth into new markets and the new ‘marine group’ would benefit from consolidating the revenue and cashflows of acquired businesses.

The acquisitions were funded through the profitability of Sealegs together with bank and shareholder loans.  Acquisitions were focused international boat manufacturers, well-established in the very large and profitable government defence market.

​​The fact there was no internationally dominant small-boat builder meant this government/defence market often had difficulty finding suppliers with the financial strength and international presence to support long procurement processes and specific requirements. Future Mobility Solutions was conceived to fill that void, accelerate the growth of Sealegs and build value for its investee companies and shareholders.

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