COURTESY MARINEMAX

On July 9, Andrew Farkas, founder and former chairman of Island Global Yachting, issued a public letter to MarineMax shareholders, saying he would like to buy back the company. MarineMax acquired IGY in August 2022, paying $480 million in cash with a potential additional earnout in 2024 of up to $100 million if predetermined performance metrics are met.

Farkas noted in his letter that the potential $100 million earnout due in less than a year is valued at $67.7 million and could be “favorably resolved” as part of a deal. He wrote the letter on behalf of Island Capital Group, a private equity and merchant banking firm.

MarineMax issued its own statement July 12:

“The MarineMax board of directors is open-minded and regularly evaluates bona-fide opportunities to enhance shareholder value. The board is always open and responsive to input from key stakeholders, and we have spoken with Island Capital on several occasions.”

Farkas offered to purchase 100% or no less than 75% of MarineMax’s YMRS business, which includes IGY plus the Fraser and Northrop & Johnson brands. His offer is to acquire the YMRS assets from MarineMax at a double-digit EBITDA valuation.

IGY has marinas in the United States, Europe, the Caribbean and Latin America, with a total of 23 facilities in 13 countries.

MarineMax CEO and president W. Brett McGill called the IGY acquisition “transformative,” and that it would position the company as a “preeminent leader in the superyacht industry.”