The Hoffmanns gobbled up the second of two ferry services that shuttle visitors to Mackinac Island from the mainland of Michigan.
The Naples-based Hoffmann Family of Companies closed on the deal with Star Line Mackinac Island Ferry Company near midnight on Friday.
It follows the family's purchase of competitor Shepler's Ferry two years ago.
Billionaire David Hoffmann, a Naples resident and the company's founder, came from humble beginnings. He has shared stories of working as a child with his father, a milkman who made early morning deliveries door-to-door in tiny Washington, Missouri.
Employees of Star Line learned of the sale Saturday morning.
It will be business as usual for the company, and the jobs of all 200 employees are secure, said Jenny Gezella, president of Hoffmann Marine, which includes Shepler’s and Sip n’ Sail Cruises on Mackinac Island, as well as marine operations in Naples and elsewhere in the country.
"All employees are staying on," she said. "We're looking forward to ensuring a first-class and efficient ride to and from the island. All pricing is under a licensing agreement. All the pricing will stay the same."
She declined to disclose the price tag of the sale.
This latest acquisition makes the Hoffmann Family of Companies the largest owner of parcels of property in the area of Mackinaw City and St. Ignace, Gezella said.
The Hoffmann group also owns two local newspapers in the area, the Mackinac Island Town Crier and St. Ignace News, as part of its larger media group, including in Naples. Mackinac is pronounced Mack-in-aw.
Since buying Shepler's in 2022, an estimated $1.3 million in updates have been completed on five ferry engines, and that kind of investment will continue, said Gezella, who flew from Naples to Michigan to handle details of the latest acquisition.
Star Line service has been disrupted by equipment problems, including this season, which has been an ongoing cause for concern among island leaders. Issues have included loss of propulsion and steering failure, according to documents obtained by the Free Press from the U.S. Coast Guard.
“Joining the Hoffmann Family of Companies heralds a new era for Mackinac Island Ferry Company,” said Jerry Fetty, the company's CEO, in a statement. “Our diverse fleet, including Hydro-Jet ferries, catamarans, classic ferries and pirate ship, will complement their marine division while maintaining our unique identity. We are optimistic about the future.”
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Reaction to the acquisition is immediate
News of the acquisition generated enthusiasm on the island.
Bart Berkshire, front manager of the Chippewa Hotel, home of the Pink Pony bar, told the Free Press, "TheHoffmann family has been doing a great job continuing the Shepler’s Ferry legacy. I can’t wait to see how they will improve the passenger ferries to and from Mackinac Island."
After hearing the news, Tim Hygh, executive director of the Mackinac Island Tourism Bureau, said the Hoffmann team has "really immersed itself in the island culture over the last few years."
"We look forward to learning more about their vision for the Mackinac Island Ferry Company," he said.
The 2024 season is expected to be strong, and so is ferry traffic.
"May (hotel) room revenue was up 17.3.% from a year ago," reaching $9 million for the first time ever, Hygh said.
He added: "We've never had a May like that, and last year was a record. The island has seen great growth over the last decade."
All eyes on Mackinac and keeping tradition
Mackinac Island, a renowned travel destination, is a carless island getaway known for its hiking, bikingand horse-drawn carriage rides.
When the Hoffmanns bid for Shepler's, they didn't make the highest offer. But the Shepler family wanted to sell to another family, so they chose the Hoffmanns, Chris Shepler told the Free Press at the time.
David Hoffmann serves as the chairman of the Hoffmann Family of Companies, with his sons Geoff and Greg serving as co-CEOS, following his "retirement."
"We're a family business so we don't have shareholders or quarterly reports or quarterly financials to report to Wall Street," the company's patriarch told the Free Press in 2022. "We're very much about maintaining the culture of Mackinac Island and that's what we bought into. We don't want to see that change."
Shepler ferries alone shuttleabout 650,000passengers between April and Novemberto Mackinac Island from Mackinaw City and St. Ignace through the Straits of Mackinac. The newest ferry,which carries 210 passengers and launched in 2020, cost $5million.
Chris Shepler remains part of the Shepler ferry service today and active with island business leaders.
Annual incomeat Shepler's alone is in the tens of millions, growing steadily, Shepler told the Free Press at the time of the sale. He declined to comment this weekend on his former competitor, deferring to Gezella, who oversaw the latest deal.
“We are thrilled to acquire the Mackinac Island Ferry Company, further expanding our presence in the Mackinac community and marine industry. Our commitment to providing first-class, efficient transportation remains steadfast, and we look forward to continuing to serve both residents and visitors to this special island," she said.
Who is who
The Hoffmann familyrunsa multibillion-dollar operation with an international footprint.The family renovated buildings in downtownNaples; Winnetka, Illinois, on the north shore of Chicago; and in Avon, Colorado, at the base of Beaver Creek ski mountain. Theirvineyard investments inAugusta, Missouri, also have generated attention.
The recently purchased ferry company rebranded as the Mackinac Island Ferry Company in 2022 to consolidate the Star Line Mackinac Island Hydro-Jet Ferry fleet, which began in the 1970s, the Arnold Line Ferry fleet, operational since 1878, and the Mackinac Marine Services (MMS) shipyard, founded in 2019, according to a news release sent Saturday afternoon by the Hoffmanns about the acquisition.
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This acquisition expands the U.S. fleet in Hoffmann Marine’s portfolio to 46 vessels across seven states, the news release stated. The company purchased Sip n' Sail in May 2024.
"With this expansion, HF Companies now owns more than 116 parcels of land, including docks in Mackinaw City, Mackinac Island and St. Ignace, 51 buildings and 6,500 parking spaces," according to the news release. "This makes the company the largest owner of real estate parcels in the area and employer to 500 people in the Mackinac area."
The Hoffmann Family of Companies consists of more than 100 global brands, with 11,000 employees and businesses in 30 countries and 400 locations around the world.
In addition to marine, media and marketing, the family has investments in aviation, agriculture, financial services, hospitality, business and professional services, industrial operations, manufacturing, real estate and transportation.
More about the Hoffmanns
David Hoffmann and his wife Jerri relocated to Naples in 2015.
They made local headlines that year after spending nearly $75 million on their first purchase of commercial real estate, consisting of seven buildings and a parking lot on world-renowned Fifth Avenue South in downtown Naples.
The shopping spree in Naples continued from there, first with more real estate, then with local businesses, and more acquisitions elsewhere.
In a strategic move, the company's affiliateHoffmannCommercialReal Estatesoldvirtually all of itsreal estateholdings in Naples last year for nearly $200 million.
The focus has shifted more toward buying up businesses, which often come with real estate – sometimes significant real estate. The change in focus came after David's sons took over the company's reins as co-CEOs in 2022.
Contact Phoebe Wall Howard: 313-618-1034orphoward@freepress.com.Follow her on Twitter@phoebesaid.
Laura Layden of the Naples Daily News contributed to this story.
