Cision PR Newswire
West Marine Announces Agreement with Lenders to Support its Continued Growth and Profitability Plan
News provided byWest Marine Products, Inc.
Sep 18, 2023, 7:30 AM ET
Transaction will provide West Marine with liquidity and significantly reduce total debt to strengthen the Company's balance sheet and financial profile
Agreement Supported by 100% of the Holders of the Company's Funded Debt Obligations and West Marine's Current Principal Equity Holder, L Catterton
FORT LAUDERDALE, Fla., Sept. 18, 2023 /PRNewswire/ -- West Marine and certain of its affiliates ("West Marine" or the "Company"), the nation's leading omnichannel provider in the marine aftermarket, announced today that it has successfully consummated a transaction that will enable the Company's strategic transformation and long-term growth. The transaction includes $125 million in fresh capital provided by existing lenders and L Catterton and a refinancing and/or exchange of existing debt, the result of which will provide the Company with liquidity, significantly reduced total debt, and a strengthened balance sheet.
"This transaction is an exciting step in the ongoing execution of our strategic plan and repositioning of our business to align with our commitment of Boaters Serving Boaters," said Chuck Rubin, Chief Executive Officer of West Marine. "We will continue to focus on building a platform for West Marine to grow in a variety of market and industry conditions. I am grateful for the continued strong partnership with L Catterton and our lenders who believe in the strength of the West Marine brand and the vision of our new leadership team as we execute our strategic growth strategy."
Mr. Rubin continued, "West Marine has been an admired brand in the boating industry for more than 55 years, and the Company stands alone in our industry as the only scaled player that can offer a combination of in-store shopping, e-commerce, omnichannel fulfillment and delivery across both B2B and B2C customers. Our operational initiatives implemented thus far in 2023 have resulted in West Marine outperforming the boating industry. We have made great strides within our professional segment and value our partnerships with our professional customers. We deeply appreciate the support and contributions of our vendors, customers, and crew members to our ongoing strategic transformation."
West Marine serves its retail and professional customers from 233 stores in 36 states and Puerto Rico, and its eCommerce website. The Company will continue to focus on providing its customers with the great products, fair pricing, fast delivery and store pickup, and the world-class know-how and service they have come to expect from West Marine. Additionally, all vendors and trade creditors will continue to be paid in the ordinary course and look forward to continuing long-term partnerships with West Marine to serve the marine aftermarket.
Kirkland & Ellis LLP served as legal advisor to West Marine, Rothschild & Co. served as West Marine's investment banker and Alvarez & Marsal North America LLC as its financial and restructuring advisor.
West Marine's lenders were represented by Gibson, Dunn & Crutcher LLP, Perella Weinberg Partners LP, Lazard Frères & Co. LLC, Akin Gump Strauss Hauer & Feld LPP, Paul Hastings LLP, and Choate Hall & Stewart LLP and L Catterton was represented by Katten Muchin Rosenman LLP.
About West Marine
West Marine is the leading integrated, omni‑channel provider of aftermarket products to the boating, fishing, sailing, and watersports markets in the United States. For more than fifty years, West Marine has been recognized as a principal resource for cruisers, sailors, anglers, yachters, fishers, and other boating enthusiasts. Founded in 1968 in Sunnyvale, California, West Marine employs approximately 3,400 crew members and operates a retail footprint of 233 stores across thirty‑six states and Puerto Rico, and its current headquarters recently relocated to Fort Lauderdale, Florida, as well as a digital footprint through its eCommerce website that reaches domestic, international, and professional customers.
SOURCE West Marine Products, Inc.
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