Acquisition of 35% equity in super yacht services player, Caribbean Marine Investments
Sygnus Deneb Investments Limited (SDI), the private equity investment company managed by Sygnus Group out of Jamaica, has announced its equity investment in Caribbean Marine Investments (CMI), which is an integrated group of companies based in St Maarten and Guadeloupe that operate in the maritime industry in the Caribbean.
CMI wholly owns International Marine Management (IMM), FKG Marine and Dockside Management. The deal for an equity interest of 35 per cent was closed on February 15.
This latest acquisition comes as SDI strategically continues to build on its growing portfolio of companies, having completed two major acquisitions at the end of 2022, and now adding CMI to its lineup. The investment by SDI will assist CMI in its strategic expansion to broaden its service offerings to the Caribbean and Latin America.
CMI has the unique experience and expertise required to excel within the superyacht industry. The principals have been leaders in yacht refit in Europe and have proven their ability to translate that knowledge and success to the Caribbean.
Principals hailed the acquisition
Ike Johnson, chief operating officer, co-founder and head of private equity and M&A at Sygnus Group, commented: “This investment in CMI is aligned with Sygnus Deneb’s strategy of providing growth capital in key growth industries, as we continue to expand our regional footprint. The CMI team has demonstrated their capability in the yacht refit and repair business over the past 15 years and we are excited to partner with them as they seek to grow and expand their business.”
For her part, Norina Edelman, co-founder and CEO at IMM Group, added: “CMI’s strategic partnership with Sygnus will allow our continued growth and development in the Caribbean, and will enable us to realise our dream of being an internationally competitive option for superyacht refit and repair.”
Fabrice Maitre, co-founder and chief operations officer of the IMM Group, shared: “The alliance with Sygnus will enable CMI to realise its full potential as the premier superyacht refit company in the Caribbean, and one of the top companies worldwide.”
Stephen Wright, Sygnus assistant vice president for private equity and M&A, said: “This investment provides exposure to an industry that is less sensitive to economic shocks and inflationary pressures and also has a great growth trajectory. CMI is also a part of an ecosystem of related businesses that drive each other, and will benefit from both revenue and geographical diversification.“
Wright added: “Sygnus Deneb has a robust pipeline of opportunities valued at US$100M, spanning various industries across the Caribbean.”
The global super-yacht industry is growing year over year with the refit and repair industry gradually becoming an important part of the global yachting industry. Demand for refit and repair services has outstripped the capacity in existing facilities, resulting in a backlog. CMI, with its suite of maritime services, has been positioning itself as a fully integrated maritime solutions provider and the leader in the Caribbean for super-yacht refit and repair services.
SDI is a regional Private Equity investment company, dedicated to providing equity and mezzanine capital in the key growth industries. SDI targets investments in medium-sized companies with revenue ranging from US$5 million to US$50 million. The fund invests in private or public companies via equity, convertible preference shares, subordinated debt and other hybrid securities with equity components.