BUFORD, Ga. - OneWater Marine Inc. (NASDAQ: NASDAQ:ONEW), a prominent marine retailer, announced the definitive agreement to acquire Garden State Yacht Sales, a move aimed at strengthening its presence in the Mid-Atlantic region of the United States. This acquisition, part of the company's strategic growth objectives, is expected to enhance OneWater's offerings in new and pre-owned boat sales, finance, and parts and services.
The acquisition will incorporate Garden State’s full-service marina and dealership located in Point Pleasant Beach, New Jersey, which boasts a diverse portfolio of brands, including Bennington, Cobia, Everglades, Pathfinder, Twin Vee, Aquasport, and Pursuit. The company is also recognized for being one of the largest parts and accessories retailers in New Jersey and provides specialized services such as maintenance and repair, winterization, and storage.
OneWater's Chief Executive Officer, Austin Singleton, commented on the acquisition, noting the minimal capital outlay involved and the company's intention to leverage its integration strategies to maximize the potential benefits of the new addition. Singleton emphasized the strategic fit of Garden State’s location and the disciplined approach OneWater maintains in its mergers and acquisitions (M&A) activities.
In the previous year, Garden State generated sales of approximately $14.0 million. The terms of the agreement include OneWater acquiring the net assets of the operation, including inventory.
OneWater Marine operates 95 retail locations, 10 distribution centers/warehouses, and multiple online marketplaces across 18 states, with several in the top twenty for marine retail expenditures. The company offers a wide range of products and services, with diversified revenue streams encompassing the sale of new and pre-owned boats, finance and insurance products, parts and accessories, and maintenance services.
InvestingPro Insights
As OneWater Marine Inc. (NASDAQ: ONEW) takes strides to expand its reach through the acquisition of Garden State Yacht Sales, its financial health and market performance remain critical for investors. According to InvestingPro data, OneWater Marine has a market capitalization of $414.72 million, reflecting its standing within the mid-cap segment of the market. Despite recent growth initiatives, the company's P/E Ratio stands at -6.77, indicating that it has been operating at a loss over the last twelve months as of Q1 2024. However, the adjusted forward P/E Ratio is more promising at 5.49, suggesting that analysts expect profitability to improve in the near future.
OneWater's revenue growth has been modest, with an 8.93% increase over the last twelve months as of Q1 2024, although there was a slight quarterly decline of 0.72% in Q1 2024. This could be a point of concern for investors looking for consistent quarter-over-quarter growth. On the brighter side, the company has seen a strong return over the last month, with a 13.81% price total return, signaling investor confidence in the wake of the acquisition announcement and potential future profitability.
InvestingPro Tips indicate that OneWater operates with a significant debt burden and is quickly burning through cash, which are important considerations for potential investors. Additionally, the stock's price movements are quite volatile, which could be a factor for those with a lower risk tolerance. On a positive note, net income is expected to grow this year, and analysts predict the company will be profitable within the year, aligning with the adjusted P/E Ratio's outlook.
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