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Private Wealth, Corporate Services House Buys Yacht Business
The transaction is an example of how, notwithstanding certain pressures, the industry for servicing, buying and maintaining these vessels continues to thrive.
Global private wealth and corporate services provider Praxis intends to push further into the yacht services arena, buying specialist superyacht ownership and operational services business Sarnia Yachts.
Sarnia Yachts has a client base of owners, trustees, family offices, lawyers and brokers serviced from its offices in Guernsey, Malta and the UK. With a history dating back 50 years, it provides services including yacht ownership, yacht management, crew management, yacht insurance support, and ownership administration and support for family offices on yacht-related services.
The proposed deal – the financial terms of which were not disclosed – is subject to regulatory and competition authority approvals.
While volatile financial conditions and rising interest rates create headwinds, data suggests that firms such as Sarnia Yachts continue to ride a rising wave of demand. According to Mordor Intelligence, the sector is expected to expand at a compound annual average rate of about 8 per cent from 2022 to 2027. Another study, from Future Market Insights, said the market for these aristocrats of the sea is expected to generate revenue of $8.812 billion by the end of 2023.
“There is great synergy between our businesses in terms of culture and client base as well as geographic footprint, and this acquisition reflects our confidence not just in Sarnia Yachts but in the potential of the yacht services market more broadly, “ Praxis chief executive Rob Fearis, said.
Sarnia Yachts’ 22 employees will join the Praxis team. Once the transition is completed, majority shareholder and incumbent Sarnia Yachts CEO, Tim Joyce, will retire after 16 years with the business.
“Praxis’ locations in Malta and the Caribbean will provide a network of offices in all the key yachting jurisdictions,” Joyce said.