MasterCraft Boat Holdings and Marine Products have entered into a definitive agreement for MasterCraft to acquire Marine Products in a cash and stock transaction valued at approximately $232.2 million, net of acquired cash. The companies said the deal would combine five recreational marine brands across four categories, bringing together MasterCraft, Crest and Balise with Marine Products’ Chaparral and Robalo.
Under the terms, Marine Products shareholders will receive $2.43 per share in cash and 0.232 shares of MasterCraft common stock for each Marine Products share. Based on MasterCraft’s closing share price of $23.12 on February 4, 2026, the consideration implies $7.79 per Marine Products share. The companies said the transaction value represents about 7.2x Marine Products’ expected EBITDA for the twelve months ending June 30, 2026, after adjusting for the elimination of approximately $6 million of public company costs and corporate overhead.
Following the closing, MasterCraft shareholders are expected to own 66.5% of the combined company and Marine Products shareholders 33.5%. The boards of both companies and a special committee of the Marine Products board unanimously approved the transaction. The companies said the deal is expected to be financed through combined cash on hand, and the closing is targeted for the second calendar quarter of 2026, subject to shareholder approvals and customary conditions. LOR, Inc., Marine Products’ majority shareholder, has entered into a voting agreement to vote in favor of the transaction.
The companies expect the combination to create a broader portfolio spanning premium performance, leisure, recreational and sport fishing categories, supported by expanded dealer coverage that combines coastal and inland networks. They also said the merged business should benefit from greater scale in product development and manufacturing, with facilities in Tennessee, Michigan and Georgia intended to support best-practice sharing, production efficiency, purchasing leverage and flexibility for future growth.
On a pro forma basis for the twelve months ending June 30, 2026, the combined company is expected to generate approximately $560 million in net sales and about $64 million in adjusted EBITDA. Management said the elimination of Marine Products’ public company costs and corporate overhead is expected to produce approximately $6 million in annual net savings and that, after adjusting for those expenses, the transaction is expected to be accretive to adjusted EPS in fiscal 2027. The combined company is expected to have no debt and retain significant capacity to support growth investments and capital allocation priorities.
Post-close leadership is expected to include MasterCraft CEO Brad Nelson as chief executive officer of the combined company and MasterCraft CFO Scott Kent as chief financial officer. MasterCraft said it expects to maintain the Chaparral and Robalo leadership teams, brands and employees as a separate operating unit. MasterCraft’s board is expected to expand from seven to 10 directors, including three new directors, with Roch Lambert serving as chair. The combined company will be headquartered in Vonore, Tennessee, while maintaining Chaparral and Robalo operating facilities in Nashville, Georgia.
Support: Wells Fargo is acting as MasterCraft’s exclusive financial advisor, with King & Spalding as legal counsel, while Truist Securities is serving as Marine Products’ exclusive financial advisor, with Alston & Bird as legal advisor, alongside additional counsel and communications advisors for the parties and the Marine Products special committee.
KEY QUOTES
“Today marks an exciting and transformational step for MasterCraft and Marine Products as we continue shaping the future of the marine industry together. We have long admired Marine Products and the success its team has achieved in creating a leading brand for recreational boaters with Chaparral and a leader in sport fishing boats with Robalo. Supported by both companies’ proven category leadership, the combined company will serve an expanded customer base with diversified offerings, drive differentiated innovation, and deliver greater value for dealers and consumers.”
Brad Nelson, Chief Executive Officer, MasterCraft Boat Holdings
“Like MasterCraft, Marine Products has succeeded through boating industry cycles with a disciplined approach to managing production, inventory levels, and dealer health while maintaining a robust financial profile. Together, we will be well positioned to capitalize on growth opportunities, particularly as demand for our products recovers. We look forward to bringing Chaparral and Robalo on board as we embark on this new chapter, build on our shared legacies of excellence, and generate value for shareholders of the combined company.”
Brad Nelson, Chief Executive Officer, MasterCraft Boat Holdings
“This transaction marks an exciting new chapter for Chaparral and Robalo, and is a testament to the hard work and dedication of our employees. We believe that MasterCraft will be a great steward of the combined business and an enthusiastic partner to our exceptional dealers and suppliers. In addition, the combination is structured to enable shareholders to continue to participate in the strength and upside potential of the combined company and benefit from a stronger institutional following.”
Ben Palmer, Chief Executive Officer, Marine Products Corporation
