Hedge fund Donerail pushes MarineMax to sell itself or replace CEO, sources say

OneWater Marine

27/10/2025 22:29

Donerail pushes for big changes as three directors are up for election in 2026

Another investor pushed for strategic review last year

Company's stock performance has lagged under CEO McGill

By Svea Herbst-Bayliss

NEW YORK, Oct 27 (Reuters) - Hedge fund Donerail Group is urging boat retailer and marina owner MarineMax HZO.N to make sweeping changes that range from selling the company to replacing its chief executive, sources familiar with the matter told Reuters.

Donerail, a long-term shareholder with a stake of roughly 4%, has criticized MarineMax for poor allocation of capital, flawed strategy and an inability to oversee financial matters. It is now stepping up its push for changes, according to the sources, who were not permitted to discuss the private matter publicly.

Since CEO Brett McGill - son of MarineMax founder Bill McGill - took the reins in 2018, he has sought to pivot the company from a leading retailer to an integrated marine business by buying Island Global Yachting (IGY) in 2022.

The acquisition left the company with more debt and industry analysts said the integration has not been smooth.

Last year, for instance, the Mexican Navy took control of the Marina Cabo San Lucas from IGY after the company failed to effectively renew its lease with the government.

Since Brett McGill became CEO, the company's stock price has underperformed the S&P 500 by 121% and lagged the S&P 600 Consumer Discretionary index by 56%. Shares of the company, which is valued at $578 million, gained 1.6% to close at $26.94 on Monday.

The company has made some changes and recently replaced several directors, including removing the chief financial officer from the board.

But the moves have not yet satisfied Donerail, the sources said.

Donerail could not be reached for comment and MarineMax did not respond to a request for comment.

Donerail is not alone in pressing MarineMax for changes. Levin Capital in 2024 pushed MarineMax to evaluate strategic alternatives and Island Capital's Andrew Farkas has said he wants to buy back IGY Marinas after selling it in 2022.

Will Wyatt, who co-founded Donerail in 2018 with Wes Calvert, has held several meetings with the company in the last few months and urged management and the board to make changes out of the public eye, the sources said.

The hedge fund is now ratcheting up pressure several months before three of the company's directors, including McGill, are scheduled to stand for reelection and as the marina business has become a hot investment area.

Ultra-wealthy yacht owners have only a few locations to dock their vessels, which provides a steady stream of income for these types of marina owners. Earlier this year, alternative asset manager Blackstone bought marina and superyacht servicing business Safe Harbor for $5.7 billion.

Industry analysts have argued there may be considerable interest for all of MarineMax or pieces of it. Last year, OneWater Marine ONEW.O offered to pay $40 a share in an all-cash deal to acquire MarineMax, valuing the deal at $2.5 billion. The offer was rejected.

MarineMax's retail business could be especially attractive since its stores sit on land that is owned by the company, analysts said.

(Reporting by Svea Herbst-Bayliss in New York; Editing by Matthew Lewis)

((svea.herbst@thomsonreuters.com; +617 233 2138; Reuters Messaging: svea.herbst.thomsonreuters.com@reuters.net/))