OneWater Marine Inc. is in talks to acquire its larger rival MarineMax Inc., people with knowledge of the matter said Sunday.
OneWater has made a $40-a-share offer for MarineMax following months of private discussions, the people said, asking not to be identified discussing private information. The combined company would be valued at about $2.5 billion, including debt, they said.
A deal between the two boat dealers may be announced as soon as this month, the people said. No final decision has been made and it’s possible the discussions could fall through, the people added.
Representatives for the companies couldn’t immediately be reached for comment.
The deal would bring together two of the largest US boat dealers, a highly fragmented market ripe for consolidation. The combination would also result in significant cost savings and long-term earnings growth, the people said.
OneWater has expanded rapidly through deals in recent years, closing an acquisition last month of Garden State Yacht Sales. The Buford, Georgia-based company describes itself as one of the largest premium marine retailers in the US, with 96 retail locations and 10 distribution centers and warehouses, according to its website. It offers new and used boats for sale, as well as financing and repair services.
Founder and Chief Executive Officer Austin Singleton took over the business from his father almost 30 years ago.
Clearwater, Florida-based MarineMax, has 130 locations, including 83 dealerships and 66 marina and storage facilities, according to its website. It also runs the high-end yacht broker Northrop & Johnson and a luxury boating charter service in the British Virgin Islands.
MarineMax counts active manager PPF Group NV among its top shareholders, according to a filing.
OneWater rose 2% to close at $25.84 in New York trading Friday, giving the company a market value of about $377 million. Its shares have fallen 24% this year. MarineMax added 2.4% to close at $28.48, giving it a market value of $635 million. Its stock has lost 27% this year.
OneWater is being advised by Donerail Group, according to the people, an investment fund and advisory firm founded by former Starboard Value LP executive Will Wyatt. MarineMax is working with advisers including Raymond James Financial Inc., they said.
Representatives for Donerail and Raymond James didn’t immediately respond to requests for comment made outside normal business hours.
