Boating Business

MasterCraft Boat to Acquire Marine Products Corporation in $232M Deal

Chaparral’s 310 OSX bowrider is at the top, and Robalo’s 360 center console is at the bottom

Chaparral’s 310 OSX bowrider is at the top and Robalo’s 360 center console is at the bottom.

It was announced yesterday that MasterCraft Boat (MCFT) will buy and merge with Marine Products Corporation (MPX) in a cash-and-stock transaction valued at ~$232.2M, net of acquired cash. Upon closing, MasterCraft shareholders will own 66.5% and Marine Products shareholders will own 33.5% of the combined company.

Marine Products shareholders will receive $2.43 in cash plus 0.232 shares of MasterCraft stock per share, valuing MPX at $7.79 per share.

The deal values Marine Products at about 7.2x expected EBITDA for the twelve months ending June 30, 2026, after adjusting for eliminated public company and overhead costs.

Here are the key details of the acquisition:

  • Transaction Status: The boards of directors of both companies unanimously approved the deal, which is expected to close in the second calendar quarter of 2026.
  • Operational Structure: Following the close, Chaparral and Robalo are expected to continue operating as a separate unit, maintaining their current leadership teams, employees, and manufacturing facilities in Nashville, Georgia.
  • Combined Entity: The combined company will be led by MasterCraft CEO Brad Nelson and will boast a portfolio including MasterCraft, Crest, Balise, Chaparral, and Robalo.
  • Strategic Rationale: The merger combines leading brands in the recreational, sport fishing, and performance boat segments, with the combined company expected to generate roughly $560 million in pro forma net sales for the twelve months ending June 30, 2026.

New Power-House Builder

The transaction brings together leading recreational marine brands including MasterCraft, Crest, Balise, Chaparral, and Robalo.

MasterCraft chief executive officer Nelson will lead the combined company, with Scott Kent continuing as chief financial officer, while Chaparral and Robalo will operate as a separate unit. The combined company will be headquartered in Vonore, Tennessee, with Chaparral and Robalo facilities remaining in Nashville, Georgia.

MPC Quarterly Report

On the same day, Feb. 5, 2026, Marine Products reported unaudited results for the quarter and year ended December 31, 2025, showing fourth-quarter net sales up 35% to $64.6 million and full-year sales up 3% to $244.4 million, but with profitability under pressure: quarterly net income fell 45% to $2.4 million and full-year net income declined 36% to $11.4 million amid higher selling, general and administrative expenses and tax charges tied to the liquidation of company-owned life insurance policies. 

Despite margin compression and a drop in EBITDA for the full year, the company highlighted strong cash generation, finishing 2025 with $43.5 million in cash, no debt, and $19.6 million in dividends paid, while opting not to hold its usual earnings call in light of the pending transaction with MasterCraft.

Benefits for Shareholders -- and Boat Dealers

The combination of MasterCraft and Marine Products brings together two iconic, market leading American recreational marine companies. The combined company will benefit from a more diversified portfolio of leading brands including:

  • MasterCraft, in the perpetually strong wake/ski boat market
  • Crest and Balise, in the robust pontoon boat market
  • Chaparral, a leading brand in the bowrider category
  • Robalo, a dominant mid-priced center console brand

Chaparral and Robalo have a large dealer network, many dealers of which will be candidates for the pontoon boat brands, and in some cases, perhaps, the MasterCraft wakeboats.  Likewise, many MasterCraft, Crest and Balise dealers may welcome the availability of two of the strongest brands in their respective categories. 

Financial Health Analysis

Marine Products has experienced a revenue growth decline of 7.9% over the past three years. The company's operating margin stands at 6.1%, while the net margin is 5.84%. The gross margin is 19%, indicating a decline from historical levels.

Marine Products is debt-free, which places it in a very strong position to withstand the rollercoaster nature of the marine industry. 

Marine Products' P/E ratio is 26.86, close to its three-year high, while the P/S ratio is 1.5. The P/B ratio stands at 2.76. Institutional ownership is at 15.53%, with insider ownership at 15.4%.