OneWater Marine Inc. announced that it has signed a definitive agreement to acquire Ocean Bio-Chem, Inc. (OBCI), a supplier and distributor of marine and automotive appearance, cleaning and maintenance products, the motor sports, recreational vehicles and outdoor power equipment market, for $13.08 per share, in an all-cash transaction valued at approximately $125 million. As part of the transaction, OneWater will also acquire OBCI’s subsidiary, Star Brite Europe, Inc. Upon closing of the transaction, OBCI and Star Brite Europe, Inc. will be integrated into OneWater’s subsidiary TH Marine Supplies, LLC. .
“Ocean Bio-Chem brings a suite of iconic brands and consumable products to the OneWater portfolio, and we are thrilled to have the experienced and highly regarded team at OBCI join us,” said Austin Singleton, Managing Director of OneWater. “OneWater has made great strides in building a parts and accessories business, using our acquisition platform to further enhance our higher margin businesses, helping us insulate ourselves from the cyclicality of the new boat sales industry. With a proven history of growth, OBCI’s shared values and consistent performance make it a great addition to the OneWater family.
As a vertically integrated supplier, OBCI manufactures, markets and distributes a wide range of products under Star brite, Star Tron, Odor Star, Performacide and other brands. Ocean Bio-Chem’s head office is located in Ft. Lauderdale, Florida with a manufacturing facility in Montgomery, Alabama shipping products worldwide.
“With OBCI’s strong customer relationships, coupled with OneWater’s strong product portfolio and direct-to-consumer channels, we have a huge opportunity to expand our reach and expand our parts and parts business. accessories. We also see significant potential for further margin expansion as we realize operational efficiencies across the platform. Additionally, OBCI’s private label consumable products for OneWater dealers will foster deeper customer engagements,” added Mr. Singleton.
“We are thrilled to join a team as passionate as we are about their business. With the support and resources of OneWater, we can implement exciting new product lines. At the same time, we can also leverage each of the business relationships in a combined portfolio to continue our profitable growth histories,” said Peter Dornau, CEO and President of Ocean Bio-Chem.
Ocean Bio-Chem’s board of directors, on the recommendation of a special committee of disinterested directors formed by the board to consider the transaction, unanimously approved the transaction.
OneWater will fund the transaction with an extension of its term loan facility led by Truist Bank and has received a Letter of Commitment to be executed following the closing of the transaction. The transaction is expected to close during the Company’s fiscal 2022 fourth quarter, which ends September 30, 2022, and is subject to customary and customary closing conditions and regulatory review and approval.
Butler Snow LLP and Vinson & Elkins LLP are acting as counsel to OneWater in connection with the transaction. Houlihan Lokey is acting as financial advisor to the OBCI Special Committee, and Morgan, Lewis & Bockius LLP is acting as legal advisor to OBCI.