UPDATE: Sygnus buys into yacht repair firm
Published:Friday | March 3, 2023 | 1:19 PM
Sygnus Deneb Investments Limited has acquired a 35 per cent stake in Caribbean Marine Investments, CMI, a group of companies based in St Maarten and Guadeloupe that’s in the business of repairing and retrofitting yachts.
The group is said to have a 15-year track record and strong market share in the region. Its subsidiaries include International Marine Management, or IMM, FKG Marine and Dockside Management.
The deal gives Sygnus Deneb one seat on the CMI board.
The cost of the acquisition, which closed on February 15, was not disclosed.
“Although there are a number of shipyards in the region, the competition to the CMI Group is very little,” said Sygnus Group’s Assistant Vice-President for Private Equity and M&A, Stephen Wright.
Sygnus described the Caribbean as the second most popular yacht destination in the world. Wright said most small shipyards focus on the storage of vessels and offer light repair services, but CMI offers broader services.
Over 40 per cent of superyacht owners carry out major maintenance works every single year and over 70 per cent at least every second year. This, together with the new trend of buying second-hand yachts and carrying out an immediate major refit, as an alternative to buying a new yacht, puts proper refit and repair facilities in high demand, Sygnus Deneb said in a release.
The private equity firm generally targets companies with revenue ranging from US$5 million to US$50 million.
CMI also has active plans to expand to other geographic locations in the Caribbean and Latin America. The investment from Deneb will help CMI position as an internationally competitive option for superyacht refit and repair, said cofounder and CEO of IMM Group Norina Edelman.
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CORRECTION FROM SOURCE: This story has been updated to correct the name of Caribbean Marine Investments.