Using a quarter of their market cap, GBY is going downstream with profits made from upstream ops. There is definitely some synergies as they get access to yacht owners' contacts and build more relationships with them.
PROPOSED ACQUISITION OF TWO PROPERTIES IN NEWPORT, RHODE ISLAND, USA
The Proposed Acquisition offers an opportunity for the Group to strengthen and solidify the Group's presence in the USA beyond its existing location in Stuart, Florida, and enhance long-term sales.
Strategic Location
Newport, Rhode Island is a highly affluent location and one of the premier boating destinations in the USA. It has ideal boating conditions, rich maritime heritage and historic waterfront, numerous worldclass sailing events, prestigious yacht clubs and high concentration of luxury yachts. The Company believes that establishing a strong presence in Newport, Rhode Island will enable it to drive new boat sales in the Northeastern region of the USA.
Brand Showcase
The Properties will be a brand showcase of the Group’s products and services to existing and prospective customers, and a tactical tool to enhance customer experience and support the Group’s boat sales. The Properties will also be used as a venue for boating activities, and to house both stock and brokerage boats.
New and Diverse Income Source
The Proposed Acquisition will also introduce new revenue streams and diversify the Group's sources of income. As Casey's Marina is presently a full-service marina, the Group would be able to take over its operations with minimal disruptions and offer its customers service facilities and berthing options, and generate new revenue streams for the Company in the form of service fees, brokerage fees, storage, and berthing fees.
Talent Acquisition
As Newport, Rhode Island is a primary location in the USA for yacht sales, the Group expects that having a presence in such location will enable the Group to attract key personnel with market credibility and insights to spearhead its sales and customer acquisition program.
Based on the Group’s intended use, the Company believes that the Purchase Consideration
represents good value for the Properties, and the Proposed Acquisition is in line with the Group’s strategy to effectively and sustainably grow its business and to increase shareholders’ value
https://links.sgx.com/FileOpen/Acquisiti...eID=837300