MarineMax makes its largest acquisition to date
CLEARWATER, Fla. – Boat retail chain MarineMax, Inc. (NYSE: HZO) has completed the acquisition of substantially all the assets of Surfside-3 Marina, Inc. and affiliated companies, it reported in a statement yesterday.
Surfside, which reported 2005 revenue exceeding $140 million, operates eight locations and distributes products and provides services through an additional seven affiliated locations in New York, Connecticut, Maryland and Rhode Island.
Under the agreement, MarineMax acquired the operating assets of Surfside for $24.8 million in cash and approximately 665,000 shares of MarineMax, Inc. common stock, plus working capital adjustments and the assumption of certain liabilities, including floor plan financing obligations relating to Surfside’s inventory.
“Acquiring Surfside gives MarineMax a valuable presence in the Northeast and is an important step in enabling us to take care of all of our customers’ needs as they boat along the Atlantic Coast, from New England to Florida,” said William H. McGill, Jr., chairman, president, and chief executive officer of MarineMax, Inc. “With its efficient operations and capable team, led by Matthew and Paul Barbara, Surfside has developed significant market share in the markets in which it operates. With Surfside’s passionate team and similar customer centric strategies, we firmly believe that together we will be even stronger in serving one of the most important marine markets in the country.”
The transaction is expected to be accretive, contributing approximately $0.10 to $0.12 to MarineMax’s diluted earnings per share in the first 12 months after the acquisition, according to the company. MarineMax will update 2006 earnings guidance when it announces the results of its March 2006 quarter.
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