West Marine has entered into a merger agreement in which an affiliate of Monomoy Capital Partners will acquire all outstanding shares of common stock of West Marine for US$12.97 per share in cash. That represents a total equity value of US$338m and represents a 32% premium over the 30-day average performance of its stock price.
West Marine CEO Matt Hyde said the acquisition was “in the best interests” of its stockholders, customers and associates. “In addition to providing our stockholders with a significant premium to the current share price, this transaction ensures that West Marine can continue to offer outstanding value to our customers who recreate on the water and provide a rewarding workplace for our associates,” said Hyde.
Daniel Collin, Co-CEO of Monomoy Capital Partners LP, said that his equity firm has “long admired” West Marine. “We strongly support West Marine’s vision for the future, strategic initiatives, and culture,” said Collin in the statement. “We are excited to invest in and work together with the company's management team to continue to lead the industry.”
West Marine Founder Randy Repass, who has about 20% of the company’s voting shares, will vote in favour of the transaction. West Marine will be privately held and continue to be operated independently by the Company's management team.
The transaction is expected to close in the third quarter of this year. It was unanimously approved by the company’s board of directors.