CRAIG Selley's enthusiasm about the Chapter 11 bankruptcy filing of Outboard Marine Corporation (OMC) isn't necessarily the reaction one would expect from Bermuda's exclusive OMC engine dealer.

On December 22, the Soros Investment Group announced plans to sell all divisions of OMC, including Johnson and Evinrude engines, whose sales and service make up 50 percent of revenue for Mr. Selley's operation, the Marine Locker. And the sale of a company can mean uncertainty for its dealers.

But Mr. Selley's reaction is not unusual among OMC dealers, who are confident that anti-trust legislation will prevent other big marine players from gobbling up the Johnson and Evinrude brands and thus gaining a stronghold in the $25 billion-a-year marine products industry. Instead, they anticipate a much-needed cash injection for a company that became less and less profitable as it diversified its business to include not only engines, but boats to hang them on, too.

"This is exciting news,'' Mr. Selley said, adding that many knew that something would happen, but weren't sure when.

"Finally, I see a big, strong company taking over Johnson and Evinrude to put it out front.'' That "big, strong company'' is rumoured to be manufacturer Bombardier, a Canadian company which reported revenues of US $9.06 billion last year.

Currently, Bombardier's marine interests are limited to Sea-Doo jet skis, while other potential bidders include Penske and Kawasaki, the latter also an engine manufacturer. Whomever the buyer, Mr. Selley hopes the change of ownership will enable Johnson and Evinrude to improve and better market their products and increase market share.

Buyers already involved in manufacturing are seen as better prospective buyers -- according to Mr. Selley, George Soros, head of the Soros Investment Group, OMC's current owner, "didn't know a whole lot about the marine industry''.

Dealers won't know who the new owner will be until February 8 at the earliest, when the Chapter 11 Bankruptcy Court in Chicago convenes to review bids. It is expected that different divisions will go to separate buyers.

The lure for them is not just the industry recognition of OMC brand names, but also a new technology the company has developed to comply with standards set by the US Environmental Protection Agency (EPA).

Developed by Ficht GmbH & Co. KG of Germany and known simply as "Ficht'', the technology reduces engine emissions in time for the 2006 deadline set by the EPA. According to Mr. Selley, it is more efficient and cost-effective than similar solutions developed by rivals Yamaha and Brunswick, which owns Mercury and Mariner, and some companies have expressed interest in buying the technology alone.

Marine Locker confident over OMC sale But Mr. Selley said it was unlikely OMC would sell rights to Ficht separately from the engine brands.

In a seasonal industry such as OMC's, timing of deals is essential to minimise damage. In an interview with Boating Industry, OMC's president and CEO, Roger Fix, said the company was "focused on selling OMC's outboard engine and boat operations as rapidly as possible.'' "We all know that the winter boat show season is upon us and it is a critical time of year both for the company as well as our dealers. Selling the OMC brands in an expeditious fashion will allow new owners to quickly assume the management of these companies and to provide them with strong financial support in the marketplace.'' Mr. Selley said he didn't expect Marine Locker customers to even notice the change of ownership.

"Right now everything is really quiet for us and the timing was pretty well orchestrated,'' he said.

"(The Marine Locker) currently has several hundred thousand dollars worth of inventory in stock, and if we really need something, the company has resumed shipments on a limited basis.'' The Marine Locker expects the manufacturer's new owners to have resumed full operations by the time Bermuda customers want to place orders.