Founded in 1987, Stabicraft has earned a reputation for innovative designs and pioneering safety features, such as the world’s first aluminium positive buoyancy chambered boat. Starting with the “Ally Duck,” a 3.5-metre dinghy developed in a backstreet workshop in Invercargill, Stabicraft rapidly expanded its operations and reach. Today, its robust, adventure-ready boats are not only a staple in New Zealand but also internationally, with dealers across Australia, the US, Canada, and Europe.
Stabicraft founder, Paul Adams, who remains the major shareholder and director, sees the investment as a vital step forward. “We’re excited to have a New Zealand-owned private equity shareholder like Simplicity on board to continue the Stabicraft legacy,” Adams said. “This partnership will strengthen our foundations, allowing us to invest further in our staff, supply chain, and dealer network as we continue to grow.”
Challenges and Change
The new investment comes during a period of economic challenges for New Zealand’s marine industry. Stabicraft, like many other companies, faced hurdles following the global pandemic and a decline in discretionary spending on luxury items. Economic pressures led to significant restructuring earlier in 2024, including job cuts at its Invercargill facility and the closure of its Auckland operations, as market conditions necessitated a leaner business model.
Stabicraft’s CEO, Aaron Greene acknowledged these challenges, noting the company’s recent moves to reduce production costs and maintain stability amid a drop in new boat sales.
Simplicity’s Vision: Long-Term Growth for a Kiwi Icon
Simplicity Private Equity Fund, managed by default KiwiSaver and investment fund provider Simplicity, brings a strong support system and a commitment to sustainable growth. Sam Stubbs, Simplicity’s managing director, underscored the fund’s confidence in Stabicraft’s brand, values, and potential for global expansion. “We’re delighted to invest in such an iconic South Island company,” Stubbs commented. “Stabicraft’s people live and breathe their brand, and that passion has driven their success.”
Simplicity’s approach will be largely hands-off, allowing Stabicraft to continue managing day-to-day operations. However, the fund retains the option to appoint an independent director to bring an additional perspective to the board. Stubbs highlighted that the investment aligns with Simplicity’s long-term goals and offers a valuable opportunity for KiwiSaver members to invest in a successful New Zealand brand.
Looking to the Future
With the support of Simplicity’s Private Equity Fund, Stabicraft is well-positioned to advance its growth strategy, despite recent headwinds. Greene stated that the investment will allow the company to explore new markets, expand its dealer network, and deliver more of the innovative, adventure-ready boats for which Stabicraft is known. As the company looks ahead, it remains committed to producing cutting-edge marine solutions while contributing positively to the Southland community.
Press Release, supplied by Stabicraft
Default KiwiSaver and Investment Fund manager Simplicity today announced that its Private Equity Fund has acquired 35.9% of the Invercargill based Stabicraft Marine.
The acquisition is the seventh for the Private Equity Fund, which invests in successful privately-owned New Zealand businesses.
Established in 1987, Southland-based Stabicraft has grown significantly to become a household name in New Zealand, renowned for its high-quality fishing and adventure boats.
Stabicraft founder, Paul Adams, remains the major shareholder and director. “We’re excited to have a New Zealand owned private equity shareholder like Simplicity onboard to continue the Stabicraft legacy,” he said. “We’re really looking forward to building on our success.”
Sam Stubbs, Managing Director of Simplicity said “We’re delighted to make this investment, which is focused on generating long-term returns for our members, while providing equity capital to help Stabicraft expand internationally.”
“Like Simplicity, the people of Stabicraft live and breathe their brand, which has clearly translated into its success over the years,” he said.
“It’s wonderful to be investing in an iconic South Island company,” he added.
Following the challenges of the COVID-19 pandemic, Stabicraft is now looking forward to growing its global footprint.
Stabicraft’s CEO, Aaron Greene stated, “We have long established relationships within our growing dealer network, a solid supply chain and most importantly, passionate staff dedicated to producing innovative designs for our loyal customers.”
