MarineMax to Acquire Intrepid Powerboats; Street Says Buy

Recreational boat and yacht retailer MarineMax, Inc. (HZO) recently announced that it has entered into a definitive agreement to acquire powerboats manufacturer Intrepid Powerboats. The financial terms of the deal, which is likely to close before the end of the year, have been kept under wraps.

Following the news, shares of the company appreciated marginally to close at $50.94 on Tuesday.

With this acquisition, MarineMax will gain access to Intrepid’s expertise in manufacturing customized boats. Further, the company expects the buyout to be accretive in its first full twelve-month period.

Notably, Intrepid follows a direct-to-consumer distribution model and has generated revenues of more than $60 million in the last twelve months.

The CEO of MarineMax, W. Brett McGill, said, “The strategic acquisition of Intrepid Powerboats allows us to provide Intrepid with additional resources to expand and to enhance how it serves their extremely loyal customer base. We believe we can help grow the Intrepid brand by leveraging our digital technologies, capital and other resources. This accretive acquisition aligns with our long-term strategy of adding quality businesses to our portfolio and implementing best practices to support the expansion of our gross margins.” (See MarineMax stock chart on TipRanks)

Last month, B.Riley Financial analyst Eric Wold reiterated a Buy rating on the stock with a price target of $65, which implies upside potential of 27.6% from current levels.

Consensus among analysts is a Strong Buy based on 3 Buys and 1 Hold. The average MarineMax price target of $61.50 implies upside potential of 20.7% from current levels.

MarineMax scores a 9 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained 91.1% over the past year.

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