Grand Banks to Buy Newport Marina

SGX Mainboard-listed Grand Banks Yachts Limited, the builder of luxury boat brands such as Grand Banks, Palm Beach and EastBay, announced that it has entered into a sale and purchase agreement to acquire two properties in Newport, Rhode Island, for a total purchase consideration of $21 million.

The properties include 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.

The proposed acquisition will provide strategic expansion in its main geographical market in the United States and enhance long-term sales of Grand Banks and Palm Beach Motor Yachts. This is timely after the group unveiled its newly expanded composite manufacturing facility this month.

Grand Banks’ U.S. subsidiary, Stuart Yacht Corporation, has paid a total deposit of $1 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. The proposed acquisition remains subject to due diligence and the group will be convening an extraordinary general meeting to obtain shareholders’ approval. Upon completion, the group will pay a further $5 million in cash. These payments will be funded from internal sources. The remaining $15 million will be paid over four annual instalments of $1.875 million plus interest with a balloon payment on the fifth instalment of $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.