OneWater Marine has completed the sale of Ocean Bio-Chem Holdings (OBCI), as part of its broader portfolio optimisation strategy which focuses on core assets and long-term value creation.
$50 million of the proceeds from the transaction will be used to reduce debt and further strengthen OneWater’s balance sheet.
“As part of our long-term strategy, we are focused on simplifying the business and allocating capital to the areas with the strongest strategic fit,” said Austin Singleton, executive chairman at OneWater.
“The transaction enables us to sharpen our focus on core assets and enhance financial flexibility.”
The transaction enables us to sharpen our focus on core assets and enhance financial flexibility.
Austin Singleton
OneWater estimates the prepayment will generate approximately $3.5 million of annual interest expense savings, strengthening its cash flow.
OBCI manufactures, markets, and distributes a number of appearance, cleaning, and maintenance products for the marine industry and the automotive, powersports, recreational vehicles, and outdoor power equipment markets under the Star brite, Star Tron, Odor Star, Performacide, and other brand names.
In addition, OBCI provides private label production, blending, and packaging for many of its products.
Ocean Bio-Chem is based in Fort Lauderdale, Florida, and has a manufacturing plant in Montgomery, Alabama.
OneWater acquired OBCI in August 2022.
Lost revenue
As a result of the sale, OneWater is updating its 2026 fiscal guidance and estimates that when factoring in the lost revenue from the exited brands, dealership same-store sales will be flat year over year.
Total revenue is estimated to be in the range of $1.78 billion to $1.88 billion with adjusted EBITDA in the range of $60 million to $80 million.
OneWater operates 95 retail locations, six distribution centres and warehouses and multiple online marketplaces in 18 different states across the US.
