By: Scott Way
MarineMax has purchased Wisconsin-based Cruisers Yachts in a cash deal announced Monday. The total of the value of the acquisition is $63 million with the funds coming from the Florida-based company's existing holdings of cash and cash equivalents.
MarineMax is coming off a record year in 2020 with $1.5 billion in revenue driven by the increased demand triggered by the Covid-19 pandemic. Even as the United States eases health restrictions leading into the summer season, the company has maintained its tempo with record sales figures during the first quarter of 2021. Their previous record was set during Q1 of 2020. MarineMax is currently the world's largest recreational boat and yacht retailer.
According to the Tampa Bay Times, it's the third major acquisition for MarineMax in ten months. The company purchased superyacht services company Northrop and Johnson in July and acquired SkipperBud's in October 2020. MarineMax stock rose more than $3 per share after trading started Monday, reaching $59.46 just before noon.
Cruisers Yachts, also known as KCS International Inc., is coming off an impressive year in its own right with sales figures exceeding $75 million in 2020.
“We are very excited about becoming part of the MarineMax family and the great opportunities that lie ahead," said Mark Pedersen, president of Cruisers Yachts, said in a statement. "Over the years, we have recognized that certain customers prefer to only buy an American-built yacht, and our brand complements MarineMax’s other offerings. The MarineMax team has a proven track record of great success in our industry. With our loyal Cruisers owners and a strong dealer network, we will all greatly benefit from being a part of MarineMax."
Cruisers Yachts has been a staple in its class for decades with a solid reputation for craftsmanship and performance. The company has also been on the upswing in recent years, catapulted by the success of new product lines like the Cantius yacht line and the recently unveiled all-new 42 GLS. The boatbuilder is currently building a 216,000 square foot manufacturing facility near Pulaski, Wisconsin to meet the growing demand. The facility is expected to double the company's output going forward.
The relationship between MarineMax and Cruisers has been evolving over the last several years with several prominent Cruisers dealers being scooped up by MarineMax as part of their steady North American expansion. MarineMax currently accounts for almost half of Cruisers' annual revenue, according to the press release.
"The strategic acquisition of Cruisers Yachts benefits our customers by filling a meaningful void in our product portfolio which was created in 2018 by the loss of Sea Ray sport yacht and yacht models," MarineMax CEO and President Brett McGill said in a statement. "The acquisition also aligns with our long-term strategy of expanding our gross margins by adding a higher margin business."
According to McGill, Pederson will remain the head of Cruiser's operations in Wisconsin going forward, where the company currently has more than 350 employees.
You can see the latest 42 GLS from Cruisers Yachts in the video below: