MarineMax gains as OneWater Marine said to be in talks to acquire the company

Shares of MarineMax (HZO) jumped more than 24% Monday after a report from Reuters stated that OneWater Marine Inc. (NASDAQ:) is in talks to acquire its larger rival.

Reuters, citing people with knowledge of the matter, said OneWater had made an all-cash, $40-a-share offer for MarineMax. This follows months of private discussions.

Following the Reuters report, OneWater released a statement saying: “As a matter of policy, we do not comment on market rumors or speculation.”

They added: “OneWater has a strong balance sheet and will continue to prioritize judicious capital allocation and maintain appropriate levels of leverage while evaluating strategic opportunities, enabling us to ensure the short-term, medium-term, and long-term viability of our business.

“Management and the Board of Directors are extremely focused on preserving and enhancing shareholder value. They are squarely aligned with shareholders given that insiders collectively hold a 17% interest in the company.”

If a deal were to go through, the combined company would reportedly be valued at approximately $2.5 billion, including debt.

Reuters added that a potential deal between the two boat dealers could be announced as soon as this month, although they cautioned that no final decision has been made and it is possible that the discussions could fall through.

HZO shares are up more than 25% at $35.63 at the time of writing.