Grand Banks Yachts Limited is expanding its U.S. footprint by buying a marina and facilities in Newport for $21 million.
The luxury yacht maker, based in Singapore, has signed a deal to purchase two properties in Newport from Casey’s Marina Inc. and related parties.
According to its website, Casey’s Marina lists 128 Logn Wharf and 1 Spring Wharf as its addresses.
The deal includes a full-service marina that can hold up to 20 boats in the water and more on land. It also comes with a covered workshop, boat storage, guest housing, and other amenities.
The Properties boast a full-service marina, a covered workshop, boat storage space, guest accommodation, supporting amenities and parking areas. It is capable of berthing up to 20 boats in the water and more on the land.
Mark Richards, CEO of Grand Banks Yachts, says, “I am very excited with this opportunity for the Group. This Acquisition will have immense strategic value to enhance our future sales and customer experience. The Group will be able to build a stronger presence and attract new customers within the prestigious North East region of the USA.”
As part of the agreement, Grand Banks’ U.S. arm, Stuart Yacht Corporation, has put down a $1 million deposit.
Sale and Purchase Agreement
Grand Banks’ U.S. subsidiary, Stuart Yacht Corporation, has paid a total deposit of US$1.0 million in escrow after entering into the Sale and Purchase Agreement with Elizabeth M. Casey, William R. Casey, Spring Wharf Marine Holdings, LLC and Casey’s Marina Inc. (collectively, the “Vendors”).The Proposed Acquisition remains subject to due diligence and the Group will be convening an Extraordinary General Meeting (“EGM”)to obtain Shareholders’ approval. Upon completion, the Group will pay a further US$5.0 million in cash, totalling US$6.0 million. These payments will be funded from internal sources.
The remaining US$15.0 million will be paid over four annual instalments of US$1.875 million plus interest with a balloon payment on the fifth instalment of US$7.5 million plus interest. The Group intends to fund the instalment payments and final payment using internal cash resources of the Group, external funding or a combination of both.
The deal still needs to pass due diligence checks and get shareholder approval at an upcoming special meeting.
Basil Chan, Non-Executive Chairman of Grand Banks Yachts, adds, “Under Mark’s leadership, we have enhanced the Group’s value proposition in boat design and quality, customer service, efficiency, financial performance and brand value. This Proposed Acquisition will be a strategic asset to enhance our continued efforts to increase shareholder value.”
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