MasterCraft to Acquire Marine Products for $232 Million
Merger combines five recreational marine brands, creating entity with $560M in projected annual sales
MasterCraft Boat Holdings announced Thursday that it has agreed to acquire Marine Products Corporation in a cash-and-stock transaction valued at approximately $232.2 million, creating a combined entity with a market capitalization of roughly $659 million.
The deal, announced alongside strong second-quarter earnings that showed a 440 basis point improvement in gross margin, brings together five recreational marine brands across four distinct product categories. MasterCraft shares rose 3.9% to $23.12 following the announcement.
Under the terms of the agreement, Marine Products shareholders will receive $2.43 in cash plus 0.232 shares of MasterCraft common stock for each share they own. Based on MasterCraft's closing price of $23.12 on February 4, the offer values Marine Products at $7.79 per share. MasterCraft shareholders are expected to own 66.5% of the combined company, with Marine Products shareholders holding the remaining 33.5%.
The transaction creates a portfolio of complementary brands: MasterCraft's existing MasterCraft, Crest, and Balise lines will join Marine Products' Chaparral and Robalo brands. Chaparral focuses on family recreational boats including sterndrive and outboard pleasure craft, while Robalo specializes in sport fishing vessels such as center consoles and bay boats. According to Marine Products' corporate materials, the company operates the largest single-site boat manufacturing plant globally.
On a pro forma basis for the twelve months ending June 30, 2026, the combined company is projected to generate net sales of approximately $560 million and adjusted EBITDA of roughly $64 million. The transaction represents approximately 7.2 times Marine Products' expected EBITDA for the same period, after adjusting for an estimated $6 million in savings from eliminated public company costs and corporate overhead.
MasterCraft anticipates the deal will be accretive to adjusted earnings per share in fiscal year 2027. The transaction is expected to close in the second calendar quarter of 2026, subject to shareholder approvals from both companies and customary closing conditions. The combined company will be headquartered in Vonore, Tennessee, with Brad Nelson continuing as chief executive officer and Scott Kent as chief financial officer.
The merger announcement comes on the heels of MasterCraft's fiscal second-quarter results, which demonstrated significant operational momentum. The company reported consolidated net sales of $71.8 million, an $8.4 million increase from the prior-year period, driven by favorable model mix, higher options sales, increased unit volumes, and elevated prices.
Adjusted net income for the quarter reached $4.7 million, or $0.29 per diluted share, compared to $1.7 million, or $0.10 per share, in the same period last year. Adjusted EBITDA more than doubled to $7.5 million from $3.5 million in the prior-year quarter.
The strategic rationale for the combination centers on diversification and expanded geographic reach. MasterCraft's brands primarily serve the wake sports and pontoon segments, while Marine Products' offerings strengthen the company's position in sport fishing and coastal boating markets. According to the companies' joint announcement, the deal unlocks growth opportunities through complementary coastal and inland dealer networks.
Both companies' boards of directors have unanimously approved the transaction, as has Marine Products' special committee. LOR Inc., Marine Products' majority shareholder, has agreed to vote its shares in favor of the deal.
MasterCraft amended and extended its credit agreement to support the transaction, providing a $75 million revolving credit facility maturing February 5, 2031. The deal is expected to be financed through combined cash on hand from both companies.
Analysts currently rate MasterCraft stock with a consensus hold rating, with an average target price of $22.80 according to market data. The stock has traded in a 52-week range of $14.38 to $23.93, and institutional investors hold approximately 96% of outstanding shares.