Sanlorenzo acquires 95% of Simpson Marine Group

Sanlorenzo, a prominent player in the luxury yacht industry, has recently finalized the acquisition of 95% of the share capital of Simpson Marine Limited. The transaction was executed with Mike Simpson, the founder and former owner of Simpson Marine. The agreed purchase price for this strategic move stands at $10 million in equity.

In addition to the initial acquisition cost, there exists an earn-out provision that could yield an additional payment of up to $7 million. This contingent payment is tied to the net profit achieved by Simpson Marine during the fiscal year 2023. Sanlorenzo’s commitment to this investment is underscored by the fact that the entire equity consideration will be funded from their robust cash reserves.

This acquisition marks a significant milestone for both Sanlorenzo and Simpson Marine, positioning them for further growth and collaboration within the maritime industry. Sanlorenzo’s expertise and financial strength, combined with Simpson Marine’s established market presence, create a compelling synergy that promises exciting prospects for the future.

During the initial three quarters of 2023, the entities incorporated within the Simpson Marine acquisition demonstrated robust financial performance. On a pro-forma aggregated basis, and in accordance with local GAAP standards, they reported an EBITDA of approximately $6.5 million and a Net Income of about $4.5 million. These figures underscore the financial health and operational efficiency of the acquired entities.

The earn-out provision, a critical component of the transaction, remains contingent upon the completion of the audit for Simpson Marine’s financial statements for the entire year of 2023. The audit process is expected to conclude by April 2024, at which point the final earn-out amount will be determined.

Simpson Marine Group, serving as Sanlorenzo’s representative in Asia since 2015, boasts an impressive track record spanning four decades. As a key player in yacht sales and services across the APAC region, Simpson Marine provides Sanlorenzo with direct distribution channels in pivotal countries, including Hong Kong, Singapore, Mainland China (specifically in Shenzhen and Sanya), Thailand, Indonesia, Malaysia, and Taiwan. This strategic alignment positions both companies for continued growth and market leadership.

This network holds immense significance, especially considering the projected surge in Ultra-High Net Worth Individuals (UHNWIs) within APAC over the next few years. Notably, the region currently exhibits lower yachting penetration rates compared to more established markets like the Mediterranean and the Americas.

Several factors contribute to the region’s growth potential. Public and private initiatives, including the development of yachting marinas along the Chinese Southern coastline and the emergence of Hainan as a global luxury hub, reinforce confidence in sustained market expansion.

The recent acquisition of Simpson Marine further bolsters Sanlorenzo’s global service offerings. Simpson Marine’s decades-long expertise in chartering, refitting, superyacht brokerage, and yacht concierge services aligns seamlessly with Sanlorenzo’s vision. This synergy enhances the overall value proposition for clients.

Sanlorenzo’s expanded footprint now spans from West to East, with a robust network in South-East Asia. This strategic positioning enables cross-border commercial initiatives. For instance, leveraging the acquisition of Equinoxe, Sanlorenzo can extend its chartering services on an intercontinental scale. Additionally, the network facilitates significant refit services, tapping into the existing client base and leveraging on-site personnel expertise.

The acquisition of Simpson Marine not only solidifies Sanlorenzo’s presence in APAC but also underscores its commitment to excellence and innovation in the luxury yacht industry.