Ocean Bio-Chem (OBCI) stock jumps 117% on acquisition by OneWater (ONEW)

Image Source: © Prathanchorruangsak | Megapixl.com

Highlights:

  • Ocean Bio-Chem, Inc. (OBCI) manufactures performance and maintenance products. 
  • OneWater Marine Inc. (ONEW) to acquire OBCI for US$125 million in an all-cash deal.
  • OBCI stock jumped 117.40% to US$12.87 on Wednesday morning after the news. 

Ocean Bio-Chem Inc. (Nasdaq: OBCI) stock more than doubled on Wednesday after announcing that US retailer OneWater Marine Inc. (Nasdaq: ONEW) is acquiring it for US$125 million or US$13.08 per share in an all-cash transaction.

OneWater has signed a definitive agreement to acquire Ocean Bio-Chem Inc. and its affiliate Star Brite Europe Inc. After completing the transaction, Star Brite and OBCI will be integrated into OneWater T-H Marine Supplies, LLC.

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The OBCI stock jumped 117.40% to US$12.87, while the ONEW share rose more than 3% to US$33.19 at 11:24 am ET after the news. 

OneWater said it would extend its term loan with Truist Bank to finance the acquisition. The transaction is expected to close in the company's fiscal fourth quarter ending September 30, 2022, after fulfilling customary closing requirements.

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Florida-based Ocean Bio-Chem manufactures performance, appearance, and maintenance products for various sectors, including marine, automotive, recreational vehicle, homecare, power sports, and outdoor power equipment industries.

OneWater CEO Austin Singleton said that Ocean Bio-Chem brings onboard iconic brands and consumable products with a demonstrated track record. He added that OBCI would make a tremendous addition to the OneWater family.

Peter Dornau, CEO and President of Ocean Bio-Chem, said that with OneWater’s resources, the company could implement new product lines and leverage sales across the combined portfolio.

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Ocean Bio-Chem Financials:

It has a market capitalization of US$122.3 million and a P/E ratio of 15.68. The stock’s current dividend yield is 2.62%, with an annualized dividend of US$0.16. 

The company reported a net income of US$1.3 million on net sales of US$12.74 million for the quarter ended March 31, 2022. In the March quarter of 2021, its net income and net sales were US$1.9 million and US$13.13 million, respectively.

The EPS diluted was US$0.14 in the quarter compared to US$0.20 in the year-ago period.   

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Bottom line:

The OBCI stock touched the highest price of US$13.40 and the lowest price of US$5.90 in the last 52 weeks. OBCI fell around 50% in one year at the closing price of US$5.92 on June 21, 2022.


 


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