Grand Banks Yachts Limited announced its acquisition of two properties in Newport, Rhode Island. The acquisition is intended to expand Grand Banks' presence in its key geographical market in the United States of America.

Expansion in the U.S.A.

Grand Banks Yachts Limited, the builder of luxury boat brands such as Grand Banks, Palm Beach, and EastBay, has confirmed plans to acquire two properties in Newport for a total purchase of $21 million USD.

The properties include a full-service marina, a covered workshop, boat storage space, guest accommodations, supporting amenities and parking areas. The properties are capable of berthing up to 20 boats on water, with additional space available on land.

The Group’s CEO Mark Richards stated, “I am very excited with this opportunity for the Group. This Acquisition will have immense strategic value to enhance our future sales and customer experience. The Group will be able to build a stronger presence and attract new customers within the prestigious North East region of the USA.”

Market presence in Newport

Rhode Island is known for its rich maritime history and premier yachting culture, and the city provides a location to enhance the sales and customer experience for Grand Banks and Palm Beach Motor Yachts. The acquisition follows the recent expansion of the Group’s Composite Manufacturing facility.

Non-Executive Chairman Basil Chan stated, “Under Mark’s leadership, we have enhanced the Group's value proposition in boat design and quality, customer service, efficiency, financial performance and brand value. This Proposed Acquisition will be a strategic asset to enhance our continued efforts to increase shareholder value."

Acquisition agreement

Stuart Yacht Corporation, Grand Banks' U.S. subsidiary, paid a $1 million USD deposit into escrow as part of the acquisition agreement. An additional $5 million will be paid upon completion, bringing the total initial payment to $6 million, which will be funded from internal resources.

The remaining $15 million will be paid in four annual installments of $1.875 million plus interest, with a final balloon payment of $7.5 million. The Group intends to finance their payments through a mix of internal and external resources and funding.

Grand Banks Yachts Limited

Grand Banks has been a manufacturer of luxury recreational motor yachts, high-quality vessels, craftsmanship and innovative design for nearly 70 years. Grand Banks continues to improve with advancements and upholding its reputation among the global boating community.

With the acquisition of the Newport properties, Grand Banks is looking forward to its growth in the U.S.A. luxury yacht market. The acquisition aligns with the company’s commitment to enhancing customer service, expanding its reach and strengthening its brand presence.