MarineMax Acquires Cruisers Yachts
May 03 2021 - 8:30AM
Business Wire
~Leading American Made Yacht
Manufacturer~
~Strategically Secures and Strengthens Its
Product Portfolio~
~Cruisers’ Recent Expansion Provides
Additional Growth Capacity~
~Acquisition Expected To Be Accretive in
First Full Year~
MarineMax, Inc. (NYSE: HZO), the world’s largest recreational
boat and yacht retailer, today announced the acquisition of KCS
International, Inc., better known as Cruisers Yachts, headquartered
in Oconto, Wisconsin. Cruisers Yachts (Cruisers) is recognized as
one of the world’s premier manufacturers of premium yachts,
producing models from 33’ to 60’ feet. Cruisers, due to demand,
recently announced the expansion of their production capacity by
purchasing a 216,000 square foot, purpose-built boat manufacturing
plant in Pulaski, WI. Such expansion allows Cruisers to more than
double its capacity over time. MarineMax’s acquisition of Cruisers
Yachts ensures it will always have a premium, American built yacht
in its product portfolio. The Company expects the acquisition to be
accretive in its first full twelve-month period.
With over 100 years of heritage, Cruisers has successfully
navigated through various industry cycles and grown through
innovation and product leadership. After launching the
distinguished design and innovation of the Cantius yacht series in
2011, Cruisers’ growth and market share accelerated. The Company
successfully navigated through the 2020 pandemic, producing revenue
of over $75 million. Cruisers has an accomplished dealer network,
including SkipperBud’s and Silver Seas Yachts, which were acquired
by MarineMax in October 2020, plus five recently added MarineMax
locations. Combined, MarineMax accounts for nearly half of
Cruisers’ revenue on an annual basis.
W. Brett McGill, Chief Executive Officer and President of
MarineMax stated, "The strategic acquisition of Cruisers Yachts
benefits our customers by filling a meaningful void in our product
portfolio which was created in 2018 by the loss of Sea Ray sport
yacht and yacht models. The acquisition also aligns with our
long-term strategy of expanding our gross margins by adding a
higher margin business. Cruisers has a seasoned, passionate and
successful team. Their industry knowledge and their recent
expansion, combined with MarineMax’s resources, will enable
Cruisers to accelerate its positioning in the market. We can
continue to expand and grow with Cruisers’ model line-up in markets
that are available. We are excited to have Mark Pedersen join our
management team as he will continue to lead the operations of
Cruisers’ more than 350 team members.”
Mark Pedersen, President of Cruisers Yachts stated, “We are very
excited about becoming part of the MarineMax family and the great
opportunities that lie ahead. Over the years we have recognized
that certain customers prefer to only buy an American built yacht,
and our brand compliments MarineMax’s other offerings. The
MarineMax team has a proven track record of great success in our
industry. With our loyal Cruisers owners and a strong dealer
network, we will all greatly benefit from being a part of
MarineMax.”
Prior to the acquisition, MarineMax’s financial capacity,
consisting of cash and cash equivalents, along with available
borrowings under its credit facilities, exceeded $400 million. The
Company paid $63 million for Cruisers, including the recently
acquired Pulaski, WI facility. The Company will provide additional
details on the acquisition when it reports its June 2021
results.
About MarineMax MarineMax is the world’s largest
recreational boat and yacht retailer, selling new and used
recreational boats, yachts and related marine products and
services, as well as providing yacht brokerage and charter
services. MarineMax has over 100 locations worldwide, including 77
retail dealership locations, including 30 marinas or storage
operations. Through Fraser Yachts and Northrop and Johnson, it is
also the largest super-yacht services provider, operating locations
across the globe. MarineMax provides finance and insurance services
through wholly owned subsidiaries and operates MarineMax Vacations
in Tortola, British Virgin Islands. The Company also operates
Boatyard, a pioneering digital platform that enhances the boating
experience. MarineMax is a New York Stock Exchange-listed company
(NYSE:HZO). For more information, please visit
www.marinemax.com.
Forward Looking Statement Certain statements in this
press release are forward-looking as defined in the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements include the belief that Cruisers will accelerate its
improvement in market position, the acquisition being accretive,
the Company’s long-term strategy to grow its cycle resilient higher
margin businesses, the Company’s continued growth. These statements
are based on current expectations, forecasts, risks, uncertainties
and assumptions that may cause actual results to differ materially
from expectations as of the date of this release. These risks,
assumptions and uncertainties include the Company’s abilities to
reduce inventory, manage expenses and accomplish its goals and
strategies, the quality of the new product offerings from the
Company’s manufacturing partners, the impacts (direct and indirect)
of COVID-19 on the Company’s business, the Company’s employees, the
Company’s manufacturing partners, and the overall economy, general
economic conditions, as well as those within our industry, the
level of consumer spending, the Company’s ability to integrate
acquisitions into existing operations, the continued recovery of
the industry, and numerous other factors identified in the
Company’s Form 10-K for the fiscal year ended September 30, 2020
and other filings with the Securities and Exchange Commission. The
Company disclaims any intention or obligation to update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20210503005248/en/
Michael H. McLamb Chief Financial Officer 727-531-1700
Media: Abbey Heimensen MarineMax, Inc.
Investors: Brad Cohen or Dawn Francfort ICR, LLC
investorrelations@marinemax.com
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