After posting another record-setting quarter of revenue, MarineMax is expanding.
The Clearwater yacht and boat retailer has purchased Wisconsin yacht manufacturer Cruisers Yachts for $63 million, the company announced over the weekend.
The deal includes a planned 216,000-square-foot plant in Pulaski, Wisc., a production expansion that MarineMax said in a statement “ensures it will always have a premium, American-built yacht in its product portfolio” as consumer demand remains high.
“We’re selling everything as it’s coming in, which is keeping inventory at lower levels,” MarineMax president and CEO Brett McGill said during an earnings call with investors in March. “It speaks to our ability to sell in a lean-inventory environment.”
Cruisers Yachts, also known as KCS International Inc., builds yachts sized from 33 feet to 60 feet in length, MarineMax said, and had sales of $75 million last year. MarineMax sales accounted for about half of that, the company said.
It’s the third major acquisition for MarineMax in the past year, following their purchase of superyacht services company Northrop and Johnson last summer and dealer and marina storage company SkipperBud’s last fall.
The company has the resources to keep growing. Revenue grew from $308.1 million in the first quarter of 2020 to $523.1 million for the first quarter of this year, an increase of 70 percent. Net income rose from about $5 million to nearly $39 million.
“We anticipated more than a year ago that boating would be one of the beneficiaries of a changed world,” McGill said during the March earnings call. “We continue to see that development play out.”
MarineMax stock rose more than $3 per share after trading started Monday, reaching $59.46 just before noon.