More acquisitions in the pipeline? US boat and yacht retail giant preps for further growth with expanded liquidity and lending terms; IBI recaps where the group stands today

America’s largest recreational boat and yacht retailer, MarineMax, announced today that it has increased its credit facility in both amount and term length.

“Through both organic and acquisition related growth, we have significantly increased the size of MarineMax,” said Michael McLamb, Executive Vice President, Chief Financial Officer and Secretary of MarineMax. ”This amendment and extension of the term of our credit facility is an important step as we look ahead and plan for the future,”

”Product demand continues to be strong, which is a testimony to the strength of the boating lifestyle,” he added. ”The lenders in our facility have been long-term partners to MarineMax and we appreciate their confidence in our strategies and management.”

The Company’s credit facility now provides MarineMax with $500 million of borrowing capacity, further increasing the Company’s liquidity and financial flexibility for future growth.  At June 30, 2021, the Company had financial capacity of over $329 million, consisting of cash and cash equivalents, along with available borrowings under its credit facilities.

Recent MarineMax acquisitions

MarineMax 2020 revenue split

  • Jul 2021 | Minnesota dealership
  • May 2021 | Cruiser Yachts (US motorboat builder)
  • Oct 2020 | Skipper Buds & Silver Seas – 20 dealer locations across Great Lakes and US West Coast
  • Jul 2020 | Northrop & Johnson
  • Jul 2020 | Private Insurance Services
  • Mar 2020 | Boatyard digtial platform
  • Jul 2019 | Fraser Yacht Services

At a glance

  • $1.17 billion 2020 sales
  • 12% revenue CAGR (since 2015)
  • $25.8 million - annual sales per store
  • 68% increase in avg store revenue (since 2015)
  • 100+ locations worldwide
  • 78 retail locations; 23 owned locations
  • 30 owned or operated marinas with 8,000+ slips (incl restaurants, storage & services)
  • 25+ premium brands with six exclusive agreements (Azimut, Benetti, Ocean Alexander, Galeon, Aviara, Aquila)

The enhanced credit facility has a three-year term expiring in July 2024, and two one-year options to renew, subject to lender approval.

Borrowings under the facility are secured primarily by the Company’s inventory that is financed through the facility. Under the amendment, certain provisions of the credit facility were modified, providing additional liquidity to the Company.

The Company’s sizeable real estate portfolio – including waterfront dealerships and marinas – is not pledged under the facility. The agent of the facility is Wells Fargo Commercial Distribution Finance and includes the following lending partners: M&T Bank, Bank of the West and Trust Bank.

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