Twin Vee PowerCats Co. (NASDAQ: VEEE), a manufacturer of power sport boats, announced it has entered into a definitive agreement under which a subsidiary of USFM Corporation will merge with the company. Concurrently, Twin Vee's marine business, including the Twin Vee and Bahama Boat Works brands, will be transferred into a privately held Delaware statutory trust. The transaction is designed to unlock shareholder value while providing greater strategic and financial flexibility for both businesses.
Under the terms of the agreement, existing shareholders will receive equity in the combined public company and contingent value rights tied to potential future distributions generated by the privatized marine business. Upon closing, the combined public company is expected to trade on the NYSE American, while the marine business will continue operating without interruption. The transaction, which has been approved by both companies' boards of directors, is expected to close in the third quarter of 2026, subject to shareholder approval, regulatory approvals, and customary closing conditions.
Twin Vee PowerCats manufactures a range of boats under the Twin Vee and Bahama Boat Works brands, designed for activities including fishing, cruising, and recreational use. Twin Vee PowerCats are recognized for their stable, fuel-efficient, smooth-riding catamaran hull designs. Twin Vee is one of the most recognizable brand names in the catamaran sport boat category and is known as the “Best Riding Boats on the Water.” Bahama Boat Works is an iconic luxury brand long celebrated for its unmatched craftsmanship, timeless aesthetic, and dedication to producing some of the finest offshore fishing vessels. The company is located in Fort Pierce, Florida, and has been building and selling boats for 30 years.
This strategic transaction highlights the company's initiative to separate its marine operations from the public entity, potentially allowing each business to pursue its own strategic goals. For the marine business, privatization may enable more focused long-term investments without the pressure of quarterly earnings expectations. For the combined public company, the merger with USFM Corporation could open new avenues for growth and diversification.
The announcement is significant for shareholders as it offers both immediate equity in a restructured public company and the potential for future value from the privatized marine business through contingent value rights. The move also reflects a broader trend in the industry where companies seek to optimize capital structures and unlock hidden value by separating distinct business units.
For more details, the full press release is available at https://ibn.fm/xhjxa. Additional information about Twin Vee PowerCats can be found at twinvee.com and bahamaboatworks.com.
