MarineMax, the world’s largest recreational boat and yacht dealer, has purchased KCS International, Inc., which is better known as Cruisers Yachts, of Oconto, Wis. Cruisers produces yachts from 33’ (10.06 m) to 60’ (18.29 m) and recently expanded its production capacity by purchasing a 216,000 sq. ft. (20,067.06 sq. m) boat manufacturing facility in Pulaski, Wis., that was the headquarters of Carver and Marquis yachts.
Cruisers Yachts says the expansion will more than double its capacity over time. MarineMax says the acquisition of Cruisers Yachts ensures that the dealer will always have a premium American-built yacht in its lineup. The company expects the purchase to be accretive in its first full 12-month period.
“The strategic acquisition of Cruisers Yachts benefits our customers by filling a meaningful void in our product portfolio that was created in 2018 by the loss of Sea Ray sport yacht and yacht models. The acquisition also aligns with our long-term strategy of expanding our gross margins by adding a higher margin business,” said W. Brett McGill, MarineMax chief executive officer and president, in a statement. “Cruisers has a seasoned, passionate and successful team. Their industry knowledge and their recent expansion, combined with MarineMax’s resources, will enable Cruisers to accelerate its positioning in the market. We can continue to expand and grow with Cruisers’ model line-up in markets that are available. We are excited to have Mark Pedersen join our management team as he will continue to lead the operations of Cruisers’ more than 350 team members.”
Tradition of Quality
With more than 100 years of heritage, Cruisers Yachts has successfully navigated through industry cycles. After launching the Cantius yacht series in 2011, Cruisers grew its market share. Despite the challenges of the pandemic, Cruisers produced revenue of more than $75 million in 2020. Cruisers’ dealer network includes SkipperBuds and Silver Seas Yachts, which MarineMax purchased in October 2020, plus five recently added MarineMax locations. Combined, MarineMax accounts for nearly half of Cruisers’ revenue on an annual basis.
“We are very excited about becoming part of the MarineMax family and the great opportunities that lie ahead,” said Pedersen, president of Cruisers Yachts. “Over the years we have recognized that certain customers prefer to only buy an American built yacht and our brand compliments MarineMax’s other offerings. The MarineMax team has a proven track record of great success in the industry. With our loyal Cruisers owners and a strong dealer network, we will all greatly benefit from being part of MarineMax.”
Prior to the acquisition, MarineMax’s financial capacity, consisting of cash and equivalents, along with available borrowings under its credit facilities, exceeded $400 million. The company pad $63 million for Cruisers Yachts, including the recently acquired Pulaski facility. Additional details on the acquisition will be provided when MarineMax reports its June 2021 results.
MarineMax has more than 100 locations, including 77 retail dealerships and 30 marina or storage facilities. Through Fraser Yachts and Northrop and Johnson, MarineMax is also the largest super-yacht services provider in the world. MarineMax provides finance and insurance services through wholly owned subsidiaries and operates MarineMax vacations in Tortola, British Virgin Islands. The company also operates Boatyard, a digital platform that enhances the boating experience. MarineMax is listed on the New York Stock Exchange under NYSE:HZO.