MasterCraft Boat Holdings and Marine Products Corporation have entered into a definitive agreement under which MasterCraft will acquire Marine Products in a cash and stock transaction valued at approximately $232.2m net of acquired cash.
The combination brings together two US-based recreational marine manufacturers with portfolios spanning performance, leisure, recreational and sport fishing powerboats. The combined brand portfolio will include the MasterCraft, Crest and Balise brands, plus Marine Products’ Chaparral and Robalo brands.
According to a statement issued by the companies on Thursday (5 February 2026), the transaction is intended to broaden category coverage and expand geographic reach through a mix of coastal and inland dealer networks.
Terms of the agreement
Under the terms of the agreement, Marine Products shareholders will receive $2.43 per share in cash and 0.232 shares of MasterCraft common stock for each Marine Products share held. Based on MasterCraft’s closing share price of $23.12 on 4 February 2026, this represents a value of $7.79 per Marine Products share. The implied transaction value of $232.2m equates to around 7.2 times Marine Products’ expected EBITDA for the twelve months ending 30 June 2026, after adjusting for the elimination of approximately $6m in public company costs and corporate overhead.
Following completion, MasterCraft shareholders are expected to own 66.5 per cent of the combined company, with Marine Products shareholders holding the remaining 33.5 per cent. The transaction has been unanimously approved by the boards of directors of both companies, as well as the special committee of the Marine Products board. The acquisition is expected to be financed using combined cash on hand.
Acquisition heralded as transformational step
Brad Nelson, CEO of MasterCraft, says: “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.”
Nelson adds: “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 capitalise 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.”
Ben Palmer, CEO of Marine Products, comments: “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.”
Expected net sales of $560m
On a pro forma basis for the twelve months ending June 30, 2026, the combined company is expected to generate net sales of approximately $560m and adjusted EBITDA of approximately $64m. The companies state that operating margins are expected to improve over time, beginning with the elimination of Marine Products’ public company costs and corporate overhead, which are estimated at around $6m in annual net savings. After these adjustments, MasterCraft management expects the transaction to be accretive to adjusted earnings per share in fiscal 2027.
Manufacturing operations for the combined business will include facilities in Tennessee, Michigan and Georgia. The companies indicate that this footprint is expected to support shared manufacturing practices, increased purchasing scale and operational flexibility. Product development and manufacturing platforms are also expected to support future model launches across the combined brand portfolio.
Details of leadership structure when transaction completed
Upon completion of the transaction, Nelson will serve as CEO of the combined company, with Scott Kent, chief financial officer of MasterCraft, assuming the same role for the enlarged group. MasterCraft plans to retain the Chaparral and Robalo leadership teams, brands and employees as a separate operating unit. The board of directors is expected to expand from seven to 10 members, with Roch Lambert appointed as chair.
The combined company will be headquartered in Vonore, Tennessee, while Chaparral and Robalo operations will continue in Nashville, Georgia. The transaction is expected to close in the second calendar quarter of 2026, subject to shareholder approvals and customary closing conditions. LOR, Inc., the majority shareholder of Marine Products, has entered into a voting agreement in support of the transaction.
MasterCraft Q2 2026 results
In a separate announcement made on Thursday, MasterCraft reported its second-quarter fiscal-year 2026 financial results.
Net sales for the second quarter were $71.8m, up $8.4m, or 13.2 per cent, from the comparable prior-year period. Gross margin percentage increased 440 basis points during the second quarter of fiscal 2026, compared to the prior-year period. Operating expenses increased $2.1m for the second quarter of fiscal 2026, compared to the prior-year period.
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