As the Trump Administration moves to reinvigorate U.S. shipbuilding, Blackstone Infrastructure announced plans to acquire Safe Harbor Marinas from Sun Communities, Inc. The $5.65 billion blockbuster deal will bring the largest marina and superyacht servicing business under the Blackstone umbrella. The all-cash deal represents an approximate 21x multiple on estimated the Safe Harbor 2024 funds from operations and is expected to close during the Q2 2025.
“We are very pleased with this transaction which further accelerates Suns strategy to improve the Company’s leverage profile and refocus on our core segments,” Gary Shiffman, Chairman and CEO of Sun, stated in the deal’s press release. “We anticipate that Blackstone will further Safe Harbor’s position as the leading marina and superyacht servicing business in the U.S.”
Safe Harbor focuses on the recreational boating business, a market valued at 42.3 billion in 2022 and projected to grow at a compound annual growth rate of 5.3% globally over 2023-2030. The U.S. dominates the market with a 44.4% share of revenue, while rising disposable incomes in China and Brazil have spurred increasing demand from emerging markets. Of boats sold, consumers overwhelmingly opt for motorized boats, which account for 87% of sales; however, non-motorized boats have become increasingly popular in recent years as some consumers seek paddle, rowing, and sailboats for their low ecological impact and fitness benefits.
Source: Grand View Research
The broader shipbuilding market has become a hot button political issue in recent months. U.S. commercial and naval shipping production collapsed in the early 1980s – falling from a global building power post-World War 2 that dominated the industry up until the 1970s, to the 19th ranked nation in recent years.
“While there were many factors at play in the decline of the shipbuilding industry, including global oversupply, recessions, and changing economic fundamentals, one policy decision stands out,” as transportation-focused non-partisan think tank Eno describes it. “For many years, countries around the world subsidized their national shipbuilding industries. The U.S. did so for a time through the payment of construction differential subsidies (CDS), but ceased this practice in 1981. When foreign shipbuilding companies gained the advantage of subsidization from their governments and the U.S. shipbuilding companies had no comparable advantage, it was impossible for the American shipbuilding industry to compete.”
Source: Shipbuilding History
To counter this decline, the Trump Administration announced plans this month to levy fees on imports arriving on Chinese-made ships – an effort to blunt China’s use of unfair policies and practices in the sector. Further, the Administration announced an executive order that will seek to support domestic via government funding, tax credits, and loans.
According to DealPulse’s M&A database, which harnesses both AI and attorneys to digest the granular deal points of publicly-announced transactions, Safe Harbor Marinas is advised by Latham & Watkins LLP law firms and Taft Stettinius & Hollister LLP.
