Island Capital Group LLC Reinforces its Proposed Transaction as Being in the Best Interests of MarineMax and its Shareholders
12 Julio 2024 - 7:30AM
Business Wire
Today, Island Capital Group LLC issued an updated letter to the
shareholders of MarineMax, Inc. (NYSE: HZO). The full text of the
letter follows:
July 12, 2024
Dear MarineMax Shareholders,
I am disappointed to report that we have not heard from any
member of the management team or the board of directors of
MarineMax, Inc. (NYSE: HZO) (“MarineMax” or the “Company”) since we
published our open letter to you earlier this week. We have not
heard from any of the Company’s financial or other advisors either.
I assume that must be disappointing to you as well.
I am humbly encouraged by your support of our proposal to
acquire the YMRS Business from MarineMax, as evidenced by recent
trading activity in the Company’s stock. The closing share price on
July 9 (the day I sent my initial letter) was $30.36, and
yesterday’s closing price was $36.07 – a 19% increase. The market
clearly recognizes that our proposal would unlock material value
for MarineMax’s shareholders.
As noted in my original letter, Island Capital and its
affiliates have a material stake in MarineMax given the earnout
payment due to us in less than a year, which is carried at $67.7
million on the Company’s balance sheet as of its most recent 10-K
(dated September 30, 2023). At this valuation, our interest
approximates 8% of the Company’s equity market capitalization (10%
before the increase in the Company’s stock price over the past two
days) – which makes us one of MarineMax’s largest stakeholders. In
comparison, the Company’s board of directors and management team
(16 people in total) collectively own only 4% of MarineMax’s
equity. The simple reality is that the value of the ongoing (status
quo) compensation prospects for the Company’s management team
significantly exceeds the value of their equity stakes (which makes
them misaligned with you, the Company’s owners).
In sum, our proposed transaction is in the best interests of
MarineMax and its shareholders, as it would provide the Company
with liquidity to deploy for debt reduction, growth opportunities
and/or or stock repurchases. I urge you to reach out to the board
and management of MarineMax to let them know that you support this
proposal and request that they engage with us immediately.
Thank you,
Andrew L. Farkas Managing Member, Chairman & CEO
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Media Mike Geller mgeller@prosek.com