• MarineMax board agreed to proceed with sale in April
  • Blackstone has expressed interest in company
  • Donerail raised its initial offer to buy company

NEW YORK, May 7 (Reuters) - Recreational yacht retailer MarineMax HZO.N is preparing to sell itself as one potential buyer recently raised its offer and at least one prominent private equity firm is conducting due diligence, three sources told Reuters.

MarineMax's board of directors agreed last month to proceed with a sale, allowing the process to move into a second round, said two of the sources, who were not permitted to talk about the private discussions. The board, including CEO Brett McGill, made the decision some six months after investor Donerail Group began pushing for a sale or for a leadership change.

Donerail, which owns a 5% stake in MarineMax and proposed buying the company itself, has increased its initial offer, two of the sources said. Blackstone Group BX.N, which is already heavily invested in marinas and yacht services, has also expressed interest and is reviewing documents, the sources said.

A MarineMax representative did not immediately respond to a request for comment. A representative for Donerail could not be reached and Blackstone declined to comment.

Headquartered in Clearwater, Florida, MarineMax caters to a wealthy clientele through its 65 marinas and storage locations and 70 dealerships, with megayachts listed for sale on its website in the millions of dollars.

Three months ago, the company sent out confidentiality agreements allowing interested parties to review documents and receive other information to shape a potential bid.

Even as the pace of moving toward a sale is picking up, sources familiar with the process cautioned that a deal is not guaranteed.