The deal, signed on Dec 7 between Sanlorenzo S.p.A. and founder Mike Simpson, was secured through a payment of US$10 million (about B356.47mn) plus an earn-out up to US$7mn calculated on the net profit for the 2023 fiscal year, both paid with Sanlorenzo’s cash on hand.
“Prior to the Sanlorenzo take over, Simpson Marine Limited will make a distribution from retained earnings in favour of Mike Simpson,” said a release announcing the takeover.
“Simpson Marine Group, representing Sanlorenzo in Asia since 2015, has been operating for 40 years as a major yacht sales and service company throughout the APAC region, and it will allow Sanlorenzo to establish a direct presence in the strategic APAC region, maintaining and further developing the service offering leveraging on the experience and expertise cumulated over decades by Simpson Marine,” said the release.
Simpson Marine started out as a small business called ‘Charter Boats’, offering boat and junk charters in Hong Kong, in 1984. The business flourished, selling its first Beneteau First 345 in 1985, and the business ‘Charter Boats’ becoming ‘Simpson Marine’ in 1987.
Simpson Marine opened its first regional office in Singapore in 1989, then another in Port Dickson, Malaysia, in 1995, and another at Sentosa Cove, Singapore, in 2002.
The following year, 2003, the group opened their Phuket branch, and are now located at Ao Po Grand Marina, in Pa Khlok.
Massimo Perotti, Executive Chairman of Sanlorenzo, announced, “We are very pleased to have signed this agreement with Mike Simpson of Simpson Marine. This is an important step for Sanlorenzo as we continue to expand our business globally.
“Simpson Marine is a well-established and widely respected company in the APAC region with a tremendous potential for further expansion, and we believe that this acquisition will enable us to further develop our business in this strategically important market.
“Under Mike Simpson’s leadership, Simpson Marine has gained a strong reputation among customers and industry peers, having developed a highly loyal team of around 140 professionals who are among the best in their respective fields, making it a sound and promising investment in line with our long-term strategic vision,” he said.
Founder Mike Simpson commented, “I am delighted to have signed this agreement with Sanlorenzo. I have known Massimo Perotti, the principal shareholder and Chairman of Sanlorenzo, for nearly 40 years and have the greatest respect for his success in building Sanlorenzo into the power house it has become in the world of luxury yachts.
“This sale to Sanlorenzo provides an opportunity for Simpson Marine to build on their past success in the region and share in Sanlorenzo’s ambitious plans for further expansion throughout APAC and beyond after they take over control next year.
“We have been selling, servicing, chartering and managing yachts in Asia for nearly 40 years and have built up a wealth of experience and expertise in the region. My teams located in 12 offices around Asia now have the opportunity of working with Sanlorenzo to take Simpson Marine and our range of services to the next level in the Asia-Pacific and globally.”
The transaction is expected to close in the first quarter of 2024, explained the release.
“Once the sale of Simpson Marine has been finalised, the next steps will include deployment of the strategic alignment plan and regional expansion scheme for the Simpson Marine portfolio of brands and services,” the release added.
Further details on financials of the target perimeter will follow upon closing and determination of the Earn-out amount based on 2023 full-year results.
The law firm Musumeci, Altara, Desana e Associati assisted Sanlorenzo with the negotiation of contractual aspects, and the firm Howse Williams assisted Mike Simpson, the release concluded.