Twin Vee PowerCats Co. (NASDAQ: VEEE), a manufacturer of power sport boats, has entered into a definitive agreement under which a subsidiary of USFM Corporation will merge with the company. Simultaneously, the company's Twin Vee and Bahama Boat Works marine business 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(TM).” 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.
The implications of this announcement are significant for shareholders and the marine industry. By splitting the public and private entities, Twin Vee aims to create distinct value streams: the public company will focus on growth and acquisitions, while the privatized marine business can operate with long-term strategic goals without the pressures of quarterly earnings. This structure may allow the marine business to invest more aggressively in innovation and brand development, potentially strengthening its position in the luxury and fishing boat markets. For shareholders, the contingent value rights offer a direct link to the future success of the marine business, aligning interests with management.
The transaction also underscores a trend in the industry where companies seek to unlock hidden value by separating distinct business units. If successful, this model could be replicated by other manufacturers seeking to balance public market access with operational flexibility. The move to NYSE American may also provide greater visibility and liquidity for the combined public entity. For more information about Twin Vee PowerCats, visit twinvee.com and bahamaboatworks.com.
