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Stonepeak is closing in on a deal to acquire Southern Marinas that would value the business at more than $700mn, as a superyacht boom drives a wave of takeovers in the sector.
The US infrastructure investor could reach an agreement in the coming weeks with the boatyard operator’s owner KSL Capital Partners, according to people familiar with the matter, although they cautioned that no final decisions had been taken.
Southern, which is expected to fetch between $700mn and $800mn, is not the only marina business on the block, as private investment firms seek to capitalise on rising demand for berths amid a proliferation of ultra-wealthy boat owners.
CVC is also exploring a sale of Greece-based D-Marin, the high-end yacht marinas business it acquired in 2020, according to people familiar with the matter.
Meanwhile, private equity group Centerbridge Partners is looking to offload its minority stake in Suntex Marinas in a deal the FT previously reported could value the group above $4bn, although it could instead opt to sell the holding to a continuation fund to allow some investors to cash out.
Investment firms are attracted to the marina sector thanks to rising demand for yacht-related services and the opportunity to consolidate a fragmented market where many businesses operate independently and may be owned by families or management.
Stonepeak’s plan is to use the Southern Marinas acquisition as a launch pad to buy up more independent marina businesses in a classic private equity roll-up strategy, the people said.
Blackstone’s infrastructure arm last year struck a $5.6bn deal to buy Safe Harbor Marinas, the largest US marina group and superyacht servicing business, in a milestone deal that spurred further interest.
Marinas garner revenues by selling berths or renting them out for seasons or even years at a time. That can offer investors steady sources of cash flow.
“You’ve got an industry which is remarkably attractive,” said John Nery, managing partner at Squircle Capital, which owns superyacht repair group MB92.
“It is fuelled by fundamental growth driven by consumer interest,” he added. “People are buying bigger boats, people are buying more boats.”
The pick-up in dealmaking comes as private capital firms face pressure from their own backers to sell off some assets and return cash.
Infrastructure investors have been a relative bright spot for activity, raising large funds to buy up assets that are viewed as steady sources of profits amid market fluctuations.
Stonepeak, CVC and KSL declined to comment.