MarineMax to Acquire Williams Tenders USA, Complementing its Luxury Yacht and Superyacht Offerings

Rhea-AI Summary

MarineMax, Inc. (NYSE: HZO) acquires Williams Tenders USA, Inc., a premier distributor and retailer of luxury yacht tenders. The acquisition is expected to be accretive in the first full year of operations, adding value to MarineMax's portfolio of integrated marine assets.

Positive

• Acquisition expected to be accretive in the first full year of operations
• Williams Tenders USA is a premier distributor and retailer for UK-based Williams Jet Tenders Ltd., the world’s leading manufacturer of rigid inflatable jet tenders for the luxury yacht market
• Enhances the value provided to yacht and superyacht customers, aligning with MarineMax's growth strategy of acquiring high-quality businesses

Negative

• None.

Insights

Market Research Analyst

The acquisition of Williams Tenders USA by MarineMax represents a strategic consolidation within the luxury marine industry. This move can be seen as a bid to strengthen MarineMax's market position by expanding its portfolio of high-end marine products. The luxury yacht market is characterized by high-value transactions and a customer base that demands exceptional quality and service. The addition of a premium brand like Williams Tenders USA to MarineMax's offerings is likely to enhance the company's appeal to its affluent clientele.

From a market perspective, the integration of Williams Tenders USA's distribution network and showroom with MarineMax's existing infrastructure could offer operational synergies. These synergies may result in cost savings and improved margins over time. It is also indicative of MarineMax's commitment to driving growth through acquisitions, a strategy that may yield positive shareholder value if executed effectively. However, it is crucial to monitor the post-acquisition integration process, as the realization of these synergies and the accretive nature of the deal will depend on effective management of the combined entities.

Financial Analyst

The statement that the acquisition is expected to be accretive in the first full year of operations is a significant indicator of the financial confidence MarineMax has in this deal. An accretive acquisition suggests that the transaction will increase the company's earnings per share (EPS), which is an important metric for investors. This could potentially lead to an uptick in investor confidence and a positive reaction in the stock market, reflecting anticipated growth in profitability.

Investors should consider the acquisition's impact on MarineMax's balance sheet, particularly regarding how the acquisition will be financed and the implications for the company's debt levels. Additionally, while the acquisition is poised to strengthen MarineMax's luxury offerings, investors should weigh this against the cyclical nature of the luxury goods market, which can be sensitive to economic downturns. A diversified portfolio, with assets catering to various market segments, can mitigate such risks.

Economist

The acquisition of Williams Tenders USA by MarineMax occurs within the broader economic context of the luxury goods sector, which tends to have a high income elasticity of demand. This means that demand for luxury yachts and their accessories, like tenders, is particularly sensitive to changes in consumer income. In a thriving economy, the luxury sector can experience significant growth, but it can also face sharp declines during economic downturns.

Given the current economic outlook, with concerns about potential recessions in key markets, MarineMax's acquisition can be seen as a double-edged sword. On one hand, it positions the company to capitalize on growth in the luxury market during economic upswings. On the other hand, it increases the company's exposure to a market segment that could contract in the event of an economic downturn. The timing of the acquisition, with its expected closure by March 31, 2024, may also be influenced by forecasts of economic conditions and thus it is a factor for stakeholders to consider.

~Transaction Adds Premier Distributor and Retailer of Luxury Yacht Tenders to MarineMax’s Portfolio of Integrated Marine Assets~

~Acquisition Expected to be Accretive in First Full Year of Operations~

CLEARWATER, Fla.--(BUSINESS WIRE)-- MarineMax, Inc. (NYSE: HZO), the world’s largest recreational boat, yacht and superyacht services company, today announced that it has entered into a definitive agreement to acquire Williams Tenders USA, Inc. The acquisition is expected to close by March 31, 2024, and be accretive in its first full year of operations.

Headquartered in Pompano Beach, Florida, Williams Tenders USA is a premier distributor and retailer for UK-based Williams Jet Tenders Ltd., the world’s leading manufacturer of rigid inflatable jet tenders for the luxury yacht market. The company offers the unparalleled range of tenders through its own showroom location and via its network of 20 dealers in the United States and the Caribbean.

“Williams Tenders USA complements our product and service offerings, enhancing the value we provide to yacht and superyacht customers,” stated Brett McGill, Chief Executive Officer and President of MarineMax. “This transaction aligns with a key element of our growth strategy of acquiring high-quality businesses that expand our unique portfolio of assets, strengthen our margin profile, and deepen our relationships with customers across the recreational marine ecosystem. Like MarineMax, Williams Tenders USA is a business that is passionate about the boating lifestyle. We look forward to welcoming company President Chris Rimmer and his talented team to the MarineMax family and building on their success as a distributor in the US and Caribbean.”

“MarineMax is an outstanding organization with a reputation for excellence. Their extensive resources and global network will enable us to further scale our independently run operations across North America,” Chris Rimmer stated. “As a result, Williams Tenders USA will be able to better serve our yacht customers and dealers and propel our business to a new level of growth.”

About Williams Tenders USA

Williams Tenders USA is the premier U.S. distributor and retailer for Williams Jet Tenders, the world's leading luxury jet tender manufacturer. The United Kingdom based manufacturer was established in 2005 and is known for its innovative, high-performance tenders and customized yacht solutions. In 2014, Williams Jet Tenders established its U.S. distributor and retailer, Williams Tenders USA. Headquartered in Pompano Beach, Florida, and with dealer locations on the U.S. East and West Coasts, in the Great Lakes region and in the Caribbean, Williams Tenders USA provides comprehensive coverage for customers throughout the United States and the Caribbean.

About MarineMax

As the world’s largest lifestyle retailer of recreational boats and yachts, as well as yacht concierge and superyacht services, MarineMax (NYSE: HZO) is United by Water. We have 130 locations worldwide, including 81 dealerships and 66 marina and storage facilities. Our integrated business includes IGY Marinas, which operates luxury marinas in yachting and sport fishing destinations around the world; Fraser Yachts Group and Northrop & Johnson, leading superyacht brokerage and luxury yacht services companies; Cruisers Yachts, one of the world’s premier manufacturers of premium sport yachts and motor yachts; and Intrepid Powerboats, a premier manufacturer of powerboats. To enhance and simplify the customer experience, we provide financing and insurance services as well as leading digital technology products that connect boaters to a network of preferred marinas, dealers, and marine professionals through Boatyard and Boatzon. In addition, we operate MarineMax Vacations in Tortola, British Virgin Islands, which offers our charter vacation guests the luxury boating adventures of a lifetime. Land comprises 29% of the earth’s surface. We’re focused on the other 71%. Learn more at 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 expectations that the acquisition of Williams Tenders, USA, Inc. will close by March 31, 2024, and be accretive in the first full year of operations, as well as the financial and operational benefits of the acquisition. 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 performance and integration of the recently-acquired businesses, general economic conditions, as well as those within the Company’s industry, the liquidity and strength of its bank group partners, the level of consumer spending, and numerous other factors identified in the Company’s Form 10-K for the fiscal year ended September 30, 2023 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240105209396/en/

Investors:

Mike McLamb

Chief Financial Officer

MarineMax, Inc.

727-531-1700

Scott Solomon or Laura Resag

Sharon Merrill Advisors

investors@marinemax.com

617-542-5300

Source: MarineMax, Inc.

FAQ

What is the ticker symbol of MarineMax, Inc.?

The ticker symbol for MarineMax, Inc. is HZO.

What is the expected closing date for the acquisition of Williams Tenders USA, Inc.?

The acquisition is expected to close by March 31, 2024.

Where is Williams Tenders USA, Inc. headquartered?

Williams Tenders USA, Inc. is headquartered in Pompano Beach, Florida.

How does the acquisition of Williams Tenders USA, Inc. align with MarineMax's growth strategy?

The acquisition aligns with MarineMax's growth strategy of acquiring high-quality businesses that expand its unique portfolio of assets, strengthen its margin profile, and deepen its relationships with customers across the recreational marine ecosystem.