MarineMax in $480M deal to Acquire IGY Marinas
Recreational boat and yacht retailer MarineMax Inc. announced Tuesday that it has entered into a definitive agreement to acquire Island Global Yachting LLC, better known as IGY Marinas, which owns and operates a collection of marina assets and a yacht management platform in key global destinations, including at Yacht Haven Grande and American Yacht Harbor on St. Thomas.
2022-08-10 15:17:28 - VI News Staff
MarineMax, which has dozens of retail locations on the U.S. mainland and charter operations in the British Virgin Islands and around the world, will acquire IGY Marinas for $480 million in cash, with an additional potential earnout of up to $100 million two years after closing, subject to the achievement of defined performance metrics, according to a BusinessWire press release announcing the deal.
An “earnout” provides for additional payments from a buyer of a company to the seller contingent on certain financial or other milestones after the acquisition, according to Investopedia.com.
IGY Marinas, through recent acquisitions and organic growth, is projected to generate more than $100 million of revenue in calendar 2022, the release stated. Subject to the satisfaction of customary closing conditions, MarineMax expects the acquisition to close in the first half of fiscal 2023. The transaction will be financed through the company’s recently completed expansion of its credit facilities and cash on hand, according to the release.
IGY Marinas will maintain its luxury branding. Tom Mukamal, CEO of IGY Marinas, and the IGY Marinas existing management team will continue to lead the growth and operations of the business, according to the release.
IGY Marinas offers a global network of 23 marinas in the Americas, the Caribbean, and Europe, catering to a wide variety of luxury yachts, while also being exclusive home ports for some of the world’s largest mega-yachts, according to the release. It also has an exclusive Trident superyacht membership program, service offerings, and comprehensive yacht management platform.