OneWater Marine Inc. announced today that it has entered into a definitive agreement to acquire TH Marine, a supplier of branded marine parts and accessories, for approximately $ 185 million. The transaction is expected to close in the fourth calendar quarter of 2021.
“With its comprehensive product portfolio, reputation for innovation, omnichannel selling strategy and ability to acquire and integrate niche leaders, we look forward to welcoming Jeff Huntley Sr. and his team to the OneWater Marine family. said Austin Singleton., Managing Director of OneWater. “We believe TH Marine represents a strong and natural fit with our service, parts and other sales activities and significantly increases our addressable market for parts and accessories. With a history of increasing financial performance, we believe the addition of TH Marine will further enhance our long-term growth strategy as we continue to grow the business and create value for our shareholders. ”
Founded in 1975 and headquartered in Huntsville, Alabama, TH Marine has grown from a primarily OEM parts supplier to an industry-leading omnichannel marine platform. It serves the growing aftermarket parts and accessories market through its e-commerce site, various marine and big box retail sites, and marine distribution channels. The transaction will advance OneWater’s growth and diversification strategy and is expected to more than double the size of its service, parts and other sales business with a highly complementary product portfolio of marine parts and accessories.
“Our history of accretive acquisitions not only complements OneWater’s business model and growth strategy, but also provides an additional platform for expansion. We look forward to working with the OneWater team to move the business forward through organic investments and growth through acquisition, ”said Jeff Huntley Sr., CEO of TH Marine. “Joining OneWater will allow us to further enhance our business acquisition and growth strategy to serve all of our aftermarket and OEM customers with even more amazing products. “
The combination is expected to further reduce OneWater’s exposure to the cyclical nature of new boat sales, giving the Company a stronger and more comprehensive offering, while improving overall gross margins.
OneWater will use a combination of cash and approximately $ 7 million in shares to fund the acquisition. Concurrent with the transaction, the Company received a commitment from Truist Securities to increase its current term facility by $ 200 million. The Company expects its net debt to adjusted EBITDA ratio to be between 1.2x and 1.7x after the transaction. The transaction is expected to close in the fourth quarter of calendar year 2021 and is subject to customary and customary closing conditions as well as regulatory review and approval.
Stifel acted as exclusive financial advisor to OneWater, while Truist Securities will provide committed financing for the transaction. Citizens M&A Advisory is the exclusive financial advisor to TH Marine.