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.
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.
In addition, IGY Marinas is a venue for exclusive events such as the Cannes Yachting Festival, Cannes Lions International Festival of Creativity, Superyacht Miami, and Art Basel. Locally, the company hosts a variety of events at its Yacht Haven Grande Marina, including the USVI Charter Yacht Show each fall and, starting in 2021, the Caribbean Charter Yacht Show, which is planned for Dec. 8 to 11 this year.
“We are delighted to announce our acquisition of IGY Marinas, a transformative transaction for MarineMax, that significantly strengthens our ability to provide the best customer experience to yacht owners around the world,” said W. Brett McGill, CEO and president of MarineMax.
“The addition of IGY Marinas positions MarineMax as the preeminent leader in the superyacht industry — the only company able to offer an integrated experience coupling high value superyacht berthing and marina services in premier locations with exclusive superyacht service offerings. Moreover, this investment continues to diversify our business mix with not only higher margins, but also a larger geographic footprint, especially in highly desired destinations in the Mediterranean and the Caribbean,” said McGill.
“Furthermore, we strongly believe that IGY Marinas will offer our Fraser Yachts and Northrop & Johnson current and future superyacht customers the opportunity to enhance their yachting experiences by providing them access to the world’s only superyacht marina network,” he said.
“We are excited to join the MarineMax family and its experienced management team,” said Mukamal. “MarineMax brings significant resources, synergies, and competitive advantages to our business, amplifying our potential for both organic and inorganic growth. With IGY’s irreplaceable destination portfolio, demonstrated track record of successful acquisitions and a robust pipeline, we are confident in our collective ability to strengthen and build on our position as the global leader in superyacht and luxury marina destinations and related services.”
Raymond James represented MarineMax, while Moelis & Company LLC represented IGY Marinas.