MasterCraft Purchases Chaparral & Marine Products Corp. in $232 Million Deal

MasterCraft Boat Holdings Inc. has purchased Marine Products Corporation in a cash-and-stock transaction valued at approximately $232.2 million USD.

The acquisition will bring together two leading U.S.-based recreational marine manufacturers and will combine several well-known brands under one portfolio.

The acquisition will combine MasterCraft’s existing brands — MasterCraft, Crest and Balise — with Marine Products’ Chaparral and Robalo brands.

Under the terms of the agreement, Marine Products shareholders will receive $2.43 in cash and 0.232 shares of MasterCraft common stock for each Marine Products share they own. Based on MasterCraft’s closing share price of $23.12 as of Feb. 4th, the consideration implies a value of $7.79 per Marine Products share. MasterCraft plans to finance the transaction using cash on hand and expects the combined company to remain debt-free following the acquisition.

According to the press release, the purchase price represents approximately 7.2 times Marine Products’ expected Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the 12 months ending June 30, 2026, after adjusting for the elimination of about $6 million in public company costs and corporate overhead. Upon completion of the deal, MasterCraft shareholders are expected to own 66.5% of the combined company, while Marine Products shareholders will own 33.5%.

Both companies’ boards of directors and Marine Products’ special committee unanimously approved the deal. The transaction is expected to close in the second calendar quarter of 2026, subject to shareholder approval and required regulatory commitments.

Brad Nelson, Chief Executive Officer of MasterCraft, said: “Today marks an exciting and transformational step for MasterCraft and Marine Products as we continue shaping the future of the marine industry together. We have long admired Marine Products and the success its team has achieved in creating a leading brand for recreational boaters with Chaparral and a leader in sport fishing boats with Robalo. Supported by both companies’ proven category leadership, the combined company will serve an expanded customer base with diversified offerings, drive differentiated innovation, and deliver greater value for dealers and consumers.”

LOR Inc., Marine Products’ majority shareholder, has entered into a voting agreement to support the transaction.

Following the transaction, MasterCraft expects to maintain Chaparral and Robalo as a separate operating unit and retain their leadership teams, brands, and employees.

Ben Palmer, Chief Executive Officer of Marine Products, said, “This transaction marks an exciting new chapter for Chaparral and Robalo, and is a testament to the hard work and dedication of our employees. We believe that MasterCraft will be a great steward of the combined business and an enthusiastic partner to our exceptional dealers and suppliers. In addition, the combination is structured to enable shareholders to continue to participate in the strength and upside potential of the combined company and benefit from a stronger institutional following.”

The combined company will continue to be headquartered in Vonore, Tennessee, while Chaparral and Robalo operations will remain in Nashville, Georgia. The combined entity will continue operating under the MasterCraft Boat Holdings name and remain listed on the NASDAQ under the ticker MCFT.

On a pro forma basis for the 12 months ending June 30, 2026, the combined company is expected to generate approximately $560 million in net sales and about $64 million in adjusted EBITDA. The deal is projected to generate about $6 million in annual net savings through the elimination of Marine Products’ public company costs and corporate overhead.

“Like MasterCraft, Marine Products has succeeded through boating industry cycles with a disciplined approach to managing production, inventory levels, and dealer health while maintaining a robust financial profile. Together, we will be well positioned to capitalize on growth opportunities, particularly as demand for our products recovers. We look forward to bringing Chaparral and Robalo on board as we embark on this new chapter, build on our shared legacies of excellence, and generate value for shareholders of the combined company,” added Nelson.

Upon closing of the deal, MasterCraft CEO Brad Nelson will lead the combined company as chief executive officer, and Scott Kent will continue as chief financial officer. MasterCraft’s board of directors will expand from seven to 10 members, adding three new directors. Roch Lambert will serve as chair of the combined company’s board.

The transaction is expected to close in the second quarter of calendar 2026, pending approvals from shareholders of both companies and regulatory requirements. #news #mastercraft #chaparral