Mastercraft Acquires Marine Products in $232M Deal

Deal Summary

Mastercraft Boat Holdings Inc, ticker MCFT, announced a definitive agreement to acquire Marine Products Corporation, ticker MPX, in a transaction valued at approximately $232.2 million. Following the announcement, Mastercraft's stock surged 6.3%, while shares of Marine Products fell 16%.

Transaction Details

The deal unites two prominent American recreational marine manufacturers, combining a brand portfolio that includes MasterCraft, Crest, Chaparral, and Robalo. Under the agreement's terms, Marine Products shareholders are set to receive $2.43 in cash and 0.232 shares of Mastercraft common stock for each share they own.

Upon closing, current Mastercraft shareholders will own approximately 66.5% of the combined company, with Marine Products shareholders owning the remaining 33.5%.

Economic and Market Outlook

This acquisition is expected to create a more diversified company with complementary dealer networks and improved manufacturing capabilities. On a pro forma basis, the new entity is projected to generate net sales of approximately $560 million and an adjusted EBITDA of about $64 million for the twelve months ending June 30, 2026.

Mastercraft management anticipates the transaction will be accretive to adjusted earnings per share in fiscal 2027. The deal is scheduled to close in the second calendar quarter of 2026, subject to customary closing conditions and shareholder approvals.

Conclusion

This strategic move is positioned to enhance market share and operational synergy for Mastercraft. While the immediate market response was mixed, the long-term focus is on the financial benefits and stronger competitive positioning of the merged company, which will be led by MasterCraft CEO Brad Nelson.

FAQ

Q: What is the total value of the acquisition?
A: The transaction is valued at approximately $232.2 million in a combination of cash and stock.

Q: How did the companies' stocks perform after the news?
A: Mastercraft stock MCFT rose 6.3%, while Marine Products stock MPX declined 16%.

Q: When is the acquisition expected to be finalized?
A: The deal is expected to close in the second calendar quarter of 2026.

Source: Investing.com