West Marine Inc., a major US marine retailer, and Monomoy Capital Partners, a New York-based private equity fund, announced that they have executed a definitive merger agreement. A wholly owned affiliate of Monomoy will acquire all of the outstanding shares of common stock of West Marine at US $12.97 per share in cash, which represents a total equity value of US $338 million.
This price represents a premium of 32 percent over the 30-day average performance of West Marine’s stock price reported on NASDAQ.
“We are excited to be joining forces with Monomoy Capital Partners as we believe it is in the best interests of our stockholders, customers and associates,” says Matt Hyde, West Marine’s President and CEO. “In addition to providing our stockholders with a significant premium to the current share price, this transaction ensures that West Marine can continue to offer outstanding value to our customers who recreate on the water and provide a rewarding workplace for our associates.”
“We are excited to welcome West Marine to the Monomoy portfolio,” says Daniel Collin, Co-Chief Executive Officer of Monomoy Capital Partners. “We have long admired West Marine and the unique value the company provides for its loyal customers and world class associates. We strongly support West Marine’s vision for the future, strategic initiatives, and culture. We are excited to invest in and work together with the company’s management team to continue to lead the industry.”
West Marine founder and board member, Randy Repass, has entered into a voting agreement whereby he and his affiliated entities over which he has sole or shared voting have agreed to vote shares representing approximately 20 percent of the company’s voting power in favor of the transaction. Following the close of the transaction, West Marine will be privately held and continue to be operated independently by the company’s management team.
The transaction, which has been unanimously approved by West Marine’s Board of Directors, is expected to close in the third quarter of this year, subject to West Marine’s stockholder approval and other customary closing conditions.
Established in 1968, West Marine has more than 250 stores located in 38 US states as well as Puerto Rico and an eCommerce website.
Monomoy Capital Partners is a private equity firm with US $1.5 billion in committed capital. Through its three fund vehicles, Monomoy makes controlling investments in lower middle market businesses in the manufacturing, distribution, consumer products and foodservice sectors. Over the past eleven years, Monomoy has closed over 45 middle market acquisitions, and its companies have reportedly produced over US $2.5 billion in combined sales and employ more than 5,000 associates across four continents.