Twin Vee PowerCats set to acquire Aquasport Boats and Tennessee manufacturing facility
by Twin Vee PowerCats Co. 11 May 2023 00:00 AEST
Twin Vee PowerCats set to acquire Aquasport Boats © Twin Vee PowerCats
Twin Vee PowerCats, Co. (Nasdaq:VEEE),("Twin Vee" or the "Company"), a manufacturer, distributer, and marketer of power sport catamaran boats, today announced that it has entered into an agreement with Ebbtide Corporation to acquire the AQUASPORT™ boat brand and manufacturing facility.
The acquisition includes Aquasport's trademarks, its 150,000-square-foot manufacturing facility situated on 18.5 acres in White Bluff Tennessee, and related tooling, molds, and equipment to initially build five Aquasport models ranging in size from 21 to 25-foot boats.
Twin Vee and Ebbtide Corporation signed a lease-option where Twin Vee funded $300,000 against the $3,100,000 purchase price. Twin Vee has the option to either pay $22,000 per month in lease payments with $16,000 of the monthly payment attributed to reducing the outstanding balance of the purchase price or purchase the Aquasport assets outright any time prior to the five years by funding the outstanding balance to Ebbtide Corporation.
According to Joseph Visconti, CEO and President of Twin Vee PowerCats Co., Twin Vee will take physical control of the Aquasport property and facility in Tennessee on June 1, 2023. The factory produced and sold Aquasport boats until November 2022. Twin Vee aims to restart the Aquasport facility and begin producing and delivering Aquasport boats.
"The acquisition of Aquasport by Twin Vee offers numerous benefits for us," remarks Visconti. "Increased revenue, greater market share, and a business model that is more scalable to a larger population of the boat-buying industry are some of the reasons we are excited about this incredible opportunity."
According to Visconti, Aquasport's acquisition will allow Twin Vee to expand its product line to include a wider variety of boats, including larger monohull models not currently offered by the Company.
"This product line expansion is likely to attract new customers interested in purchasing boats with such a recognizable pedigree as Aquasport," states Visconti. "Additionally, the acquisition will allow the Company to leverage Aquasport's existing brand recognition and sell our products to a wider audience, potentially further increasing revenue."
Twin Vee also anticipates an increased market share with the acquisition of Aquasport. "Aquasport has been an established player in the recreational marine industry since the 1960s, with a loyal customer base and a reputation for quality and reliability. By combining our resources, we believe we can increase the Company's market share and take advantage of new opportunities," says Visconti. "Not only are we looking forward to adding Aquasport's incredible model lineup to our own, but we are also excited to utilize Aquasport's dealer network to bring our power catamarans to a broader consumer base that might not yet be familiar with our brand."
The Company is preparing to take over Aquasport's boat manufacturing plant and office facilities on June 1st, significantly expanding Twin Vee's production capabilities.
"This opportunity enables us to create a more scalable business model better suited to the needs of a larger population of the boat-buying industry. Twin Vee and Aquasport both have established reputations for quality and reliability," explains Visconti. "Together, we have the potential to create a more diverse and robust product line that is better suited to the needs of a wider range of customers. This will help the Company appeal to new customers, increase its revenue, and establish a business model that adapts to changing market conditions. Moreover, this move allows us to take advantage of economies of scale in manufacturing, distribution, and marketing, helping us reduce costs and increase profitability."
Aquasport was founded in 1964 as C&S Boats after Fred Coburn and Lennox Sargent introduced a 22'2" open, modified-vee hull, center console, and outboard-powered fishing boat to the market. Renamed Aquasport in 1967, the company's first boat was known as a trendsetter that launched the center console into mainstream boating and changed how builders and buyers approached small, personal fishing boats. By the 1970s, Aquasport offered several more center console models, ranging from 17 feet to 24+-feet in length. Genmar Holdings, Inc., the second largest manufacturer of recreational motorboats at the time, purchased Aquasport in 1989 and continued to produce a wide range of recreational center console boats until the brand was shelved in 2005. Ebbtide eventually purchased the brand and brought it back online a few years ago.
"Aquasport boats have had a significant impact on the marine industry for nearly 60 years," states Visconti. "Aquasport has been at the forefront of many technological advancements in the industry. Its 22-2 boat was considered the first modern center console boat. It adopted aluminum in boating early on and was one of the first marine manufacturers to build a walkaround cuddy and tuna tower. Their boats have helped to set the standard for performance and functionality."
Additionally, Twin Vee believes that one of Aquasport's most significant impacts was its reputation for producing quality boats that are both functional and stylish and that could support rigorous use by avid fishers, weekend warriors, and families alike.
"We can't wait to work with the Aquasport brand and see what we can achieve together."