NEW YORK, May 7 - MarineMax is preparing to advance a potential sale after its board of directors approved moving the process into a second round, according to people familiar with the matter. The decision follows months of pressure from activist investor Donerail Group and comes as interested buyers step up scrutiny and offers.
Two sources with knowledge of the private discussions said the board - including Chief Executive Officer Brett McGill - agreed last month to proceed with a sale. The decision occurred roughly six months after Donerail, which holds about a 5% stake in MarineMax and had been urging either a sale or a change in leadership, began pressing for a strategic outcome.
Donerail initially proposed an all-cash bid of $35 per share earlier this year, a price that implied a near $1 billion valuation for the company, and those familiar with the process said the group has since raised that offer. The sources declined to provide further details on the revised figure.
Private equity interest has surfaced as well. Two sources said Blackstone Group has shown interest and is reviewing documents as part of its due diligence. At least one other prominent private equity firm is also reported to be conducting diligence on the company, according to the same sources. MarineMax did not immediately respond to a request for comment; Donerail could not be reached for comment, and Blackstone declined to comment.
Headquartered in Clearwater, Florida, MarineMax operates an integrated retail and marina business that serves affluent buyers. The company reports 65 marinas and storage sites and 70 dealerships, and lists megayachts priced in the millions on its website. About three months ago MarineMax circulated confidentiality agreements so interested parties could access documents and other information intended to shape potential bids.
Those involved in the process caution that advancing to the next phase does not guarantee a transaction. Sources familiar with the sale process emphasized that a deal remains uncertain even as activity intensifies.
Investors have responded to the heightened takeover chatter. MarineMax shares have climbed roughly 30% so far this year as investor pressure for a strategic outcome increased. Management has also signaled capital return intentions, stating the company will repurchase stock.
Industry observers cited in the current process noted that the marina sector has become more attractive following three interest-rate cuts by the Federal Reserve last year and amid indications of rising consumer demand for boats. Despite recent gains, MarineMax's stock has declined by more than 50% over the past five years.
On the advisory side, the company is working with bankers at Wells Fargo, while Donerail and its investment partners have engaged Jefferies for their pursuit of a takeover, according to people familiar with the matter. Earlier reporting indicated that other potential suitors and investors, including recreational vehicle retailer Blue Compass, Island Capital Group, and private equity firm TPG, had previously expressed interest in MarineMax.
Context and next steps
The board-sanctioned move into a second round will allow prospective buyers that signed confidentiality agreements to conduct deeper due diligence and submit more detailed proposals. How the process unfolds will depend on the bids received and continued engagement from parties that have already begun reviewing materials.