Purchase agreement signals expansion for MarineMax

CLEARWATER, Fla. - MarineMax, Inc. has entered into an agreement to pay $27.5 million in cash, plus working capital adjustments, and assume certain liabilities in exchange for the operating assets, including certain real estate, of the Port Arrowhead Group, the boat retailer reported in a release last week.

The acquisition, which includes certain real estate, of Port Arrowhead Marina, Inc. and its sister companies, Lake Port Marina, Inc. and Port Arrowhead, Inc. (the "Port Arrowhead Group"), will follow the satisfactory completion of due diligence. The transaction is expected to close in the first calendar quarter of 2006.

The majority of the purchase price comprises the acquisition of substantial real estate holdings, consisting of a large marina with more than 300 slips and two retail stores.

With revenue exceeding $70 million for its most recently completed fiscal year, the Port Arrowhead Group is one of the largest independent boat dealers in the country. Port Arrowhead's operations are located in the states of Missouri and Oklahoma from which it also serves neighboring Midwest boating destinations in Illinois, Kansas and Arkansas.

"We are very excited about the Port Arrowhead Group joining MarineMax,” said William H. McGill, Jr., chairman, CEO and president of MarineMax, Inc. “Port Arrowhead's culture and customer centric strategies are aligned with ours and its team's commitment to service is well recognized throughout the industry. In addition, the scale of its operations and its location in a strong growing boating market presents an outstanding opportunity for MarineMax."

The transaction is expected to be accretive in its first full year. MarineMax expects to provide updated earnings per share guidance after the transaction closes.

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