MarineMax Inc. (NYSE:HZO) shares soared more than 34% to around $47.80 in pre-market trading on Monday following a report that Safe Harbor Marinas, owned by Blackstone Infrastructure, is nearing an agreement to acquire the recreational boating company.
According to Reuters, citing people familiar with the discussions, the proposed transaction would value MarineMax at approximately $1.5 billion including debt.
The sharp pre-market rally represents a substantial increase from Friday’s closing price of $35.68 as investors responded to the prospect of a sizeable takeover premium.
Safe Harbor reportedly offers around $53 per share
Safe Harbor Marinas is expected to pay approximately $53 per MarineMax share in cash under the proposed transaction, according to the report.
At that price, MarineMax’s equity would be valued at roughly $1.17 billion.
The potential offer represents a premium of about 49% to the company’s closing share price on Friday, helping explain the strong reaction in MarineMax (NYSE:HZO) shares ahead of Monday’s opening bell.
Safe Harbor, which is owned by Blackstone Infrastructure, is described as the world’s largest owner and operator of marinas, making MarineMax’s substantial network of boating and marina assets a potentially complementary addition to its portfolio.
Deal could end months-long battle for MarineMax
A transaction with Safe Harbor would bring to a close a competitive sale process that has reportedly attracted interest from several potential buyers over recent months.
Activist investor Donerail and private equity group Centerbridge were also reported to have reached the final stages of the bidding process for MarineMax.
MarineMax operates a substantial recreational boating network, including 65 marina and storage locations alongside 70 dealerships, with the majority of its operations located in the United States.
Its business primarily serves affluent customers purchasing yachts, boats and related services, giving potential acquirers exposure to the premium recreational marine market.
MarineMax deal could be announced this week
Safe Harbor and MarineMax could announce an agreement as soon as this week, provided negotiations do not encounter any last-minute complications, according to the report.
A completed acquisition would significantly expand Safe Harbor’s presence across the recreational marine industry while combining its existing marina portfolio with MarineMax’s dealership, storage and marina operations.
For MarineMax shareholders, the reported $53-per-share cash consideration would provide a substantial premium to recent trading levels.
However, with a formal agreement yet to be announced, completion of the transaction remains dependent on the parties finalising negotiations and avoiding any late-stage obstacles.
The prospect of a $1.5 billion takeover nevertheless provided a powerful catalyst for MarineMax (NYSE:HZO) shares, sending the stock more than 34% higher in Monday’s pre-market session.