The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Bradford Marine’s general manager yesterday confirmed that the yacht repair facility is considering sales offers, with the likely buyer a multi-billion dollar private equity fund that recently eyed the Grand Bahama Port Authority (GBPA).

Multiple business community contacts on Grand Bahama told Tribune Business that Bradford Marine’s prospective purchaser is the Carlyle Group, the world-renowned private equity firm with more than $200 billion in assets under management.

Dan Romence, Bradford Marine’s top Bahamas-based executive, declined to go into detail when contacted by this newspaper, although he effectively confirmed that the company was ‘in play’ and that offers from potential purchasers were being assessed.

“There’s nothing too much that I can say about that, other than the shareholders are considering their options,” Mr Romence told Tribune Business, when asked whether the company was being sold to the Carlyle Group.

“There’s no statement or announcement to be made at this time.”

Tribune Business’s Grand Bahama business contacts, though, suggested that a deal with the Carlyle Group was imminent if not already agreed in principle.

“I think it’s been sold, or is being sold, to the Carlyle Group,” one well-connected Grand Bahama businessman told this newspaper.

“They have a US facility in Fort Lauderdale, as well as the one over here, with the same name, Bradford Marine.”

Another contact, also speaking on condition of anonymity, suggested Bradford Marine’s Bahamas operation was part of a much larger acquisition, and had effectively been included almost as a “sweetener” to the buyer.

The source, also confirming that the Carlyle Group was the likely buyer, said Bradford Marine’s senior management and staff in the Bahamas had already been informed of the pending deal.

“It’s definitely inked, and if it’s not closed, it’s close to being closed,” the source said.

Another business figure who has dealings with Bradford Marine said: “I know they’ve been entertaining sales offers for some time.”

Bradford Marine is seen as a key component of Grand Bahama, and Freeport’s, maritime industry with its docks and repair facilities serving the high-end luxury yacht market and other ocean-going boats.

It is a significant employer, and acts as a complement to the Grand Bahama Shipyard, which is focused on repairs and retrofits for larger vessels, such as cruise ships, tankers and cargo vessels.

The Carlyle Group has recently targeted the luxury yacht repair market as a growth industry, and in July 2015 announced its acquisition of Lauderdale Marine Center (LMC).

The 50-acre, Fort Lauderdale facility was described as the largest yacht repair facility in the US in terms of the number of large vessels it can haul and service, and is understood to be where Bradford Marine’s US business operates from.

LMC can accommodate yachts up to 200 feet in length, and has 19 covered sheds and 156 wet slips. Its lifts can haul up to 330 tons, and there is 7,000 linear feet of dockage.

Bradford Marine’s Bahamas facility, too, has 2,500 feet of dock length, with a depth of 25 feet. It can provide storage for vessels up to 120 feet in length.

Giving an insight into Carlyle’s intentions, Thad Paul, its managing director, said at the time: “In partnership with the outstanding management team and staff at LMC, we will build upon LMC’s success through growth and continued innovation and superb customer service.

“Favourable demand trends in the mega-yacht industry and the high barriers to entry for new supply in south-east Florida attracted us to the investment.”

Tribune Business revealed earlier this year how Carlyle Group was approached in March 2015 to see if it was interested in acquiring the GBPA from the Hayward and St George families.

Hannes Babak, the ex-GBPA chairman, disclosed in an affidavit that Carlyle responded to ‘teasers’ designed to attract potential GBPA purchasers by April.

“On April 14, 2015, John Thomas suggested that David Stonehill of Carlyle wanted to meet with John and me to discuss possible sale of IDC (or part of it),” Mr Babak alleged, referring to the GBPA’s immediate holding company.

“As a result of that meeting, Carlyle sent through a letter confirming their interest and a proposed Non-Disclosure Agreement (NDA). I met with Carlyle, with John Thomas, later that week on April 17, 2015.

“I told Patti Bloom about this meeting on April 18. In the end, it proved difficult to move forward because Sarah St George stalled on providing Carlyle with the necessary financials for them to assess the deal. She did eventually provide a hard-copy bundle of old financial statements, but not up-to-date management accounts.”

Ultimately, by the end of May 2015, Carlyle decided not to proceed with its GBPA interest.

Carlyle, which has now grown to $203 billion in assets under management, has 48 offices and 1,700 employees worldwide - making it one of the globe’s major private equity players.

Its connections to high-ranking players in the US Republican Party, including the two former presidents Bush and their family, plus the likes of former treasury secretary and secretary of state, James Baker, has attracted frequent media coverage.