Twin Vee PowerCats Co. (NASDAQ: VEEE), a manufacturer of power sport boats, announced a definitive agreement to merge with a subsidiary of USFM Corporation while transferring its Twin Vee and Bahama Boat Works marine business into a privately held Delaware statutory trust. The transaction, approved by both companies' boards of directors, is designed to unlock shareholder value and provide greater strategic and financial flexibility for both businesses.
Under the terms of the agreement, existing Twin Vee shareholders will receive equity in the combined public company, which is expected to trade on the NYSE American upon closing. Additionally, shareholders will receive contingent value rights tied to potential future distributions generated by the privatized marine business. The marine operations will continue without interruption, ensuring business continuity for customers and partners.
The transaction is expected to close in the third quarter of 2026, subject to shareholder approval, regulatory approvals, and customary closing conditions. Twin Vee PowerCats, based in Fort Pierce, Florida, has been building and selling boats for 30 years, producing a range of vessels under the Twin Vee and Bahama Boat Works brands. Twin Vee is recognized for its stable, fuel-efficient, smooth-riding catamaran hull designs and is known as the “Best Riding Boats on the Water(TM).” Bahama Boat Works is an iconic luxury brand celebrated for its craftsmanship and dedication to producing some of the finest offshore fishing vessels.
This strategic move comes as Twin Vee PowerCats seeks to separate its marine manufacturing business from the public company structure, potentially allowing the marine business to operate with more focused management and investment strategies. The privatization may also reduce public market pressures and enable longer-term planning for the boat-building operations.
For shareholders, the combination of equity in the public entity and contingent value rights tied to the marine business provides a dual path to potential returns. The public company will benefit from the merger with USFM, gaining access to new capital and a broader shareholder base. The marine business, now privately held, can pursue growth initiatives without the quarterly scrutiny of public markets.
The announcement is significant for the recreational boating industry, as it highlights a trend of companies restructuring to optimize value creation. Twin Vee's decision to privatize its marine operations while merging with USFM could serve as a model for other manufacturers seeking to unlock hidden value. Investors and industry observers will be watching closely as the transaction progresses through approvals.
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.
