Donerail Group Offers $1.1 Billion to Purchase MarineMax

The Donerail Group has submitted a non-binding proposal to acquire MarineMax -- the world's largest recreational and yacht retailer -- in an all-cash deal valued at approximately $1.1 billion, according to multiple reports.

Under the terms of the proposal, Donerail is offering $35.00 in cash per share for all outstanding MarineMax common stock. The offer represents a 38% premium over MarineMax’s 60-day volume-weighted average share price of $25.45, as of Monday.

The proposal is non-binding and subject to due diligence, negotiation, and documentation, and must be approved by Donerail’s investment committee, according to a press release.

Not only is MarineMax the largest recreational boat retailer in the world, it's also one of the most active in terms of acquisition. The Oldsmar, Florida-based company purchased renowned brands Intrepid Powerboats and Cruisers Yachts in 2021, as well as superyacht management company SYM in 2022. The company operates primarily as a recreational boat and yacht retailer, marina operator, and provider of superyacht services with 65 marinas and storage facilities, as well as 70 dealerships spanning across recreational boating.

Donerail Group, based in Los Angeles, CA and was founded in 2018 by William Wyatt. The investor group "is a merchant bank built to help catalyze, structure, and facilitate solutions for companies at critical inflection points," according to its website.  

According to the offer details, Donerail has secured the necessary equity and debt support letters from unnamed investment firms to finance the transaction. The proposal also states that any definitive agreement would not be subject to financing conditions. Jefferies LLC is acting as financial advisor to Donerail, and Olshan Frome Wolosky LLP is serving as legal counsel.

MarineMax, headquartered in Oldsmar, Florida, confirmed it has received the unsolicited offer. The company’s board of directors will review the proposal with independent financial and legal advisors. MarineMax also stated that no shareholder action is required at this time. MarineMax has retained Wells Fargo as its financial advisor and Sidley Austin LLP as legal counsel to assist with evaluation of the proposal.

Following the confirmation of the offer, MarineMax’s stock price rose on Tuesday. Shares traded higher on the news, reflecting the market’s interest in the acquisition

Donerail is already one of MarineMax’s largest shareholders, owning over 4% of the company’s outstanding shares. The investment group had reportedly been engaging with MarineMax’s management in recent months to discuss strategic alternatives.

News of the offer comes ahead of MarineMax’s annual shareholder meeting, scheduled for March 3rd, at which three board members — including CEO Brett McGill — are up for election.

Because the proposal is non-binding, there is no guarantee that an agreement will be reached. MarineMax’s board has not announced any decision regarding acceptance, rejection, or modification of the offer as of Tuesday.

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