Safe Harbor Set to Acquire MarineMax in $1.5 Billion Finance Deal
Details and Implications of the Safe Harbor-MarineMax Acquisition
By Svea Herbst-Bayliss and David French
Overview of the Acquisition
NEW YORK, Aug 10 (Reuters) - Blackstone Infrastructure's Safe Harbor Marinas, the world's largest owner and operator of marinas, is nearing a $1.5 billion deal to acquire MarineMax, people familiar with the matter said.
Background and Bidding Process
The agreement will cap a months-long battle to buy the recreational yacht retailer, which caters to a wealthy clientele through its 65 marinas and storage locations and 70 dealerships, mostly in the United States. Activist investor Donerail and private equity firm Centerbridge were also among bidders in the final round, Reuters reported last month.
Financial Terms of the Deal
Safe Harbor is set to pay around $53 per share in cash to buy MarineMax, the sources said, a significant premium to its Friday closing price of $35.68. This would value MarineMax's equity at $1.17 billion, according to Reuters calculations. MarineMax held long-term debt of $335 million at the end of June, per data provider LSEG.
Expected Announcement and Comments
A deal could be announced as soon as this week, barring any last-minute complications, added the sources, who spoke on condition of anonymity to discuss private deliberations.
MarineMax did not immediately respond to a request for comment. Blackstone declined comment.
Strategic Impact and Industry Context
Significance for Safe Harbor
It would be Safe Harbor's most significant deal since being acquired by Blackstone's infrastructure arm in a $5.7 billion buyout in April of last year.
Expansion of Marina Network
Acquiring Oldsmar, Florida-based MarineMax will add further marina locations to Safe Harbor's existing network, which includes operations in the U.S., Caribbean and Mediterranean.
Safe Harbor will own and operate all of MarineMax's business segments, some of the sources said.
Market Trends and Investor Activity
Growing Investment Appeal of Marinas
The bidding war for MarineMax underscores the growing investment appeal of the marina business, as lower interest rates have supported high-end consumers' spending on luxury items like yachts even as other economic brackets are forced to tighten their belts.
Activist Pressure and Board Changes
Donerail had ramped up pressure on MarineMax in October by publicly urging the company to sell itself or replace CEO Brett McGill.
MarineMax made some changes aimed at addressing investor concerns, including replacing board directors, but began formally soliciting buyer interest from April.
(Reporting by Svea Herbst-Bayliss and David French in New York; Editing by Echo Wang and Kevin Buckland)
