(NYSE: VSTO) has entered into an agreement to purchase for $540 million with the potential for an additional $50 million earnout based on Fox Racing鈥檚 financial performance, both companies jointly announced Wednesday. The purchase brings Fox Racing into Vista Outdoor Inc.鈥檚 stable of now 40 outdoor and shooting sport brands that include Camp Chef, CamelBak, Blackburn, Bushnell, and Remington.

Publicly traded Vista Outdoor Inc. in revenue for fiscal year 2022, a growth of 36.8 percent over fiscal year 2021.

“Fox Racing is an ideal fit for our portfolio with a reputation for high quality helmets, protective gear and apparel for motocross and mountain biking,鈥� said Chris Metz, Vista Outdoor CEO, in a . 鈥淢otocross and mountain biking are growing and familiar categories for Vista Outdoor. Fox Racing is synergistic to our existing action sports business unit, which includes Bell Helmets, Giro, Blackburn, Krash, Copilot, and Raskullz. The addition of Fox Racing to our portfolio will allow us to target multiple consumer demographics across mountain and road biking, skiing/snowboarding, and powersports.鈥�

Metz further said the acquisition of Fox Racing continues 鈥渢he successful implementation of our strategy to use accretive acquisitions to expand our leadership position and ability to capitalize on long-term growth opportunities in outdoor recreation.鈥�

Fox Racing was started by Santa Clara University physicist Dr. Geoff Fox in 1974 and is known as an industry leader in protective gear, apparel and accessories for motocross and mountain biking. Fox Racing grew its net sales by a compound annual growth rate of approximately 20 percent from 2019 to 2021, and is expected to top that growth for 2022. (Fox Racing Shox under Fox Factory Holding Corp. is a separate company started by Geoff鈥檚 brother, Bob Fox, in 1978 and is not part of the sale.)

, the CEO of Fox Racing, will continue to lead the company following the closing of the acquisition, as will all of Fox Racing’s leadership team.

“We’re excited to join the Vista Outdoor family,” McGuane said in a press release. “Together we can leverage the heritage of our leading brands, enjoy new supply chain synergies, expand our deep and established channels, and target an expanded customer base. Combined with enhanced access to capital for innovation and scale, we believe this transaction is a win-win for all involved. It is not often that an acquired company can remain true to its culture and customer base, while also tapping into the benefits of Vista Outdoor’s centers of excellence, vast retail partnerships, innovation engines, and a leadership team that enables a founder’s mentality and results-driven culture. Needless to say, we are thrilled about this next chapter for Fox Racing.”

Fox Racing will be included in the new Outdoor Products company formed when Vista Outdoor splits into two separate businesses next year, a move it in May.

For the 2022 calendar year, Fox Racing’s full-year net sales and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) are expected to be approximately $350 million and $55 million, respectively. Vista Outdoor expects the transaction to be immediately accretive to earnings, excluding transaction costs, transition costs, and inventory step-up.

Vista also reported today that it expects to finance the Fox Racing acquisition through a combination of a $600 million asset-based revolving credit facility, which will replace Vista Outdoor’s existing asset-based revolving credit facility, and a $350 million secured term loan facility.聽

Vista expects to close the transaction in the second fiscal quarter of 2023, subject to the receipt of regulatory approvals and other closing conditions.

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, the maker of Clif Bar, Luna Bar, and Clif Kid Zbar, has entered an agreement to sell to () for $2.9 billion, according to made by both companies on June 19.

The acquisition ends privately owned Clif Bar鈥檚 history of and adds the popular energy bar to the former Kraft Foods company鈥檚 large portfolio of international snack brands that includes Oreo, Chips Ahoy!, Ritz, Toblerone, Cadbury Chocolate, Swedish Fish, and Wheat Thins.

鈥淲e are thrilled to welcome Clif Bar & Company鈥檚 iconic brands and passionate employees into the Mondel膿z International family,鈥� Mondel膿z International Chairman and CEO Dirk Van de Put wrote in a press release issued this week. 鈥淭his transaction further advances our ambition to lead the future of snacking by winning in chocolate, biscuits and baked snacks as we continue to scale our high-growth snack bar business.鈥澛�

鈥淢ondel膿z International is reshaping our portfolio to sustain long-term growth, and we have been looking to grow our global snack bar business along with our in the U.S. and in the U.K,鈥� said Tracey Noe, Mondel膿z International vice-president for global external communications, in a call with OBJ today. 鈥淲e also want our growth to reflect our commitment to sustainability, and Clif Bar is right in line with our philosophy at Mondel膿z International.鈥�

Noe said Clif Bar will continue to operate from its Emeryville, California, headquarters and retain its employees. Clif Bar CEO Sally Grimes will report to Mondel膿z International North America President . Clif Bar employees and customers won鈥檛 see any disruption to Clif Bar products or distribution, Noe said.

鈥淲e see a great opportunity to expand Clif Bar into the Canadian market and beyond,鈥� said Noe. 鈥淲e鈥檙e excited to bring this healthy, tasty snack to a larger market and promote nutritious, active lifestyles.鈥�

鈥淢ondel膿z International is the right partner at the right time to support Clif in our next chapter of growth,鈥� said Sally Grimes, Clif Bar鈥檚 CEO. 鈥淥ur purposes and cultures are aligned and being part of a global snacking company with broad product offerings can help us accelerate our growth while staying true to our deeply ingrained 鈥攕ustaining our people, planet, community, business, and brands鈥攆ive bottom lines that have grounded our company since its founding and will remain our north star going forward.鈥�

Clif was created by Gary Erickson after a 175-mile bike trek in 1990 left him disappointed in the energy bars of the time. He worked with his mom in her kitchen to develop his first offerings of Double Chocolate, Apricot, and Date Oatmeal that launched in 1992, and named the bars for his father, Clifford. Selling mainly through bike shops, Erickson saw $700,000 in sales his first year, and $20 million in sales by 1997. Clif Bar declined a $120 million offer from Quaker Oats in 2000, and has been credited for its environmental policies, employee stock ownership program, and outdoor-athlete sponsorships.

Chicago-based Mondel膿z International reported global net revenues of $28.7 billion in 2021, and saw a 15 percent growth in sales in 2020 credited to the pandemic shutdown. It was founded in 2012 when Kraft Foods split into two companies, Mondel膿z for snacks and Kraft Foods Group for grocery products. Mondel膿z became the new name of Kraft snack company after an employee contest winner suggested Mondel膿z, a combination meaning 鈥渄elicious world.鈥澛�

Mondel膿z International has come under fire in recent years along with other global snack companies for indirectly contributing to deforestation related to chocolate farming in the Ivory Coast鈥攁n issue it is addressing through its 鈥攁nd for not fully pulling out of the after the start of the Ukraine invasion. Mondel膿z International manages its that supports healthy lifestyles in communities worldwide, and its that aims to improve its positive environmental, social, and governmental influence globally.聽

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Legacy pack maker Osprey announced today that is has entered into a 鈥渂inding agreement鈥� to be acquired by consumer-goods holding company Helen of Troy (HoT), which also owns Hydro Flask.

Although terms of the deal were not disclosed, an investor relations presentation on HoT’s website suggests the overall value of Osprey could be worth more than $410 million. Osprey鈥檚 expected 2021 consumer sales are expected to top $155 million and the deal could potentially add $20 million in annual revenue for HoT.

“Along with Hydro Flask, we can now serve and delight an even larger number of passionate end-users in the large and growing outdoor adventure category,” said Helen of Troy CEO Julien R. Mininberg following the sale.

Osprey CEO and president Layne Rigney told 国产吃瓜黑料 Business Journal today that private equity firm Freeman Spogli & Co., which invested in the company in 2016, will no longer retain an ownership stake.

If successful, the sale will mark the end of Osprey founder Mike Pfotenhauer鈥檚 47-year involvement with company. Following the sale, Pfotenhauer plans to retire with his wife, Diane Wren (herself a co-owner of the business), according to a press release.聽

According to Osprey, Pfotenhauer will transition into a consulting role for the brand over the next year, as he finishes some final design projects. He said he plans to focus his future energy 鈥渙n a balance of art projects and meaningful work on critical environmental and social concerns.鈥�

“I want to extend my appreciation and reiterate my respect to all of my current and former Osprey colleagues and their families for their commitment not only to our company but to each other and their communities,” Pfotenhauer said. “Their dedication has built Osprey into a brand and family that millions of end-users trust and care about deeply.”

Finding the Right Buyer

To make sure Osprey landed in the right hands, Pfotenhauer and Wren met with about 35 potential buyers before choosing HoT, according to Rigney, who added that the couple 鈥�felt Helen of Troy is a company that values creative, innovative product design and has a track record of successfully integrating newly acquired businesses into their brand portfolio.鈥�

Osprey would become HoT鈥檚 second core outdoor brand, joining Oregon-based Hydro Flask, which the parent company acquired in 2016. The group鈥檚 portfolio is most heavily weighted toward beauty brands, with Revlon, Pert, and Brut among its assets.

Explaining the reasoning behind the acquisition, HoT’s investor relations presentation notes that Osprey is No. 1 or 2 among all pack brands in various key retail segments, according to NPD data. The deal may also give HoT further inroads into key retail accounts, according to presentation figures.

Rigney added that, as a result of the sale, Osprey will also be able to strengthen and expand its distribution and market share in Asia and Latin America.

“Approximately half of Osprey sales are outside the U.S., further accelerating our strategy to invest in international,” Mininberg said. “We believe Osprey and Hydro Flask make a compelling combination in the U.S. and provide further critical mass internationally with thousands of additional retail doors that can benefit both brands and consumers.”

The transaction is expected to close before the end of the calendar year, according to the companies’ announcements, subject to customary closing conditions, including regulatory approval.

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The past year has been transformative for Boa Technology Inc.鈥攁nd not just because 2021 marks the company鈥檚 20th anniversary of designing and making patented dial fit systems for outdoor gear and other products.

In the last 12 months, Boa settled into its new ownership under Compass Diversified, the publicly traded holding company that acquired the brand in October 2020 for $454 million. It鈥檚 also welcomed new talent and unveiled new products. Even its spacious Denver headquarters, which Boa occupied in 2018, still has that new-building look and feel.

But for a brand that is seeing rapid growth each quarter鈥擝oa鈥檚 sales spiked more than 50 percent to $39.5 million in the recently completed Q3鈥攐ne of the first comments that CEO Shawn Neville offered during a recent interview with OBJ came as a surprise.

鈥淲e have fewer brand partners today than five years ago鈥攁nd that鈥檚 on purpose,鈥� he told us. 鈥淲e wanted to make sure we had the right folks to grow with us. As we curated the brands we work with, our business has almost tripled in five years with fewer partners.鈥�

Despite all the changes happening at Boa鈥攁 new owner; growing revenue with fewer partners; celebrating its 20th anniversary鈥攖he same principle has guided the company since its founding in 2001.

Boa remains focused on innovation. That ideal can be seen and felt in Boa鈥檚 dial systems whether they鈥檙e on a snowboard boot, bike helmet, trail running shoe, medical device, or an alpine ski boot鈥攐ne of the innovations that Boa will unveil in a couple of seasons.

With so much happening at Boa these days, notably its 20th anniversary and first year being owned by CODI, we wanted to check in with Neville about the brand鈥檚 latest happenings. Here鈥檚 what he shared:

As you reflect on Boa鈥檚 journey over the last 20 years, what stands out for you? What are some of the drivers of the company鈥檚 success?

I usually break it into three parts. First, it always starts with the origins and the company鈥檚 founder, Gary [Hammerslag], and an ongoing commitment to talent. The vibe and the passion here have remained the same as the company has grown and evolved. Second is our absolute commitment to disruptive innovation. We鈥檙e doing that by building deep partnerships with brand partners. The last thing is the company has scaled purposely. As the business has grown considerably, we ask ourselves if we鈥檙e building the infrastructure of excellence so that operationally we connect around the world with people that come from different backgrounds and cultures, while creating the evolution of Boa. That aspect is allowing us to scale the company effectively鈥攁ll while doing that more sustainably.

It鈥檚 been a year since Compass Diversified acquired Boa; can you take us behind the company鈥檚 (and its investors鈥�) decision to sell? Why was CODI the right fit?

A couple of years back, we had a board meeting in Austria where I spoke with our existing shareholders. The majority shareholder had already been in the investment for seven years. They loved the business and probably could鈥檝e stayed in it a long time. But we decided that maybe it was time to get another partner鈥攏ot that we needed the cash but it just seemed like a nice inflection point so we went through the sale process. We were looking for an investor that wasn鈥檛 looking to shake things up but was willing to understand and partner with us as we continued to evolve. We found Compass, and they clearly emerged as the best potential partner for a couple of reasons. One is they know the space and they鈥檝e also had successful investments in the outdoor industry. Two, they operate as partners, not managers. From my vantage point, I feel very fortunate to have them, and so does our team.

How has CODI been as a parent company? What resources and synergies have you seen now that Boa is part of its growing portfolio?

Compass has a unique business model. They are a public company, but they operate their businesses like a private equity business. Boa is an independent entity with its own shareholder base. Compass is a majority shareholder, but we鈥檙e not an operating division, so it鈥檚 been very different than, say, a pure acquisition. Compass is the majority investor in Boa. I鈥檓 a large investor in the brand as well, but I鈥檓 also invested in Compass because I believe in them. If they integrated too much of the back office, it would create extraction challenges when it came time to sell the company. The biggest benefit is, first and foremost, the capital structure. They can invest and borrow money at a collective rate lower than most private equity companies, and they pass along those benefits when debt is put on the balance sheet. They鈥檙e also very nimble around the use of capital. They鈥檙e not trying to create an operating company. They鈥檙e a holding company with strategic, thoughtful support as opposed to getting too engaged.聽

What鈥檚 the biggest difference (or biggest differences) between being owned and operated by a PE firm versus a publicly traded company?

I鈥檝e been lucky enough to run both public and private companies. I鈥檝e always tried to lead my team as if we are transparent: we have long-term plans, we have short-term expectations, and we are measured against both. There wasn鈥檛 much change after the acquisition. There鈥檚 a bit more pressure on our finance team in terms of requirements, but it鈥檚 not changed the way we operate. If you have a clear long-term plan, and you believe in it, and you鈥檙e resourcing against it, and you鈥檙e committed to it, and you understand the gyrations of the business, you will never be led by short-term expectations.

How did COVID impact Boa beyond delaying the acquisition?

I always enjoyed the comment 鈥渘ever waste a crisis.鈥� Our team had a meeting where we said, 鈥淢any things are important; we need to make sure we understand what鈥檚 critical. And if we stay focused on that, we don鈥檛 know what鈥檚 going to happen in the short term, but we鈥檒l be in better shape in the future.鈥� We agreed that financial security and the safety of our people was paramount, and we ensured that we didn鈥檛 cut investments in long-term innovation. Of course, we made slight adjustments as others did just because of the fluctuation of business, and I think as a result of that, it allowed us to come through with the organization more energized.

Any particular headwinds or tailwinds that stunted or propelled the company in recent months?

We produce our goods and our partners consolidate them in Hong Kong, and then ship them out to factory partners. We鈥檝e had supply chain restraints, but we鈥檝e been fortunate enough not to have to pass on too many delays to our partners. All things considered, we鈥檝e been able to manage through it. Our brand partners have had more challenges trying to fill shelves, factories are still challenged in Vietnam, and there are freight challenges. But I would say we鈥檝e come through COVID a stronger company. And the industry, I believe, is also better-positioned for the future. I鈥檓 proud of the team and fortunate to be in an industry that wants more people outdoors.聽

Who or what do you see as the biggest threat to Boa鈥檚 success? What keeps you up at night?

I always look at threats through the eyes of opportunity. Success sometimes breeds too many conversations about threats, which sometimes creates protection. There are always threats, but the question is how do we convert those into opportunity. The biggest threats are internal: not continuing to invest in a more diverse organization, not committing to sustainability, not building out our capabilities, not working to be the flagship brand for our partners. We still want to be disruptive and innovative ten, 15, 20 years from now.

What鈥檚 next for Boa?

Our future is about how the consumer performs in our product. Through our Performance Fit Lab, we鈥檙e constantly working to be a leader in big data, material science, and the application of our system. We are maniacally focused on improving human performance through fit, and the application of Boa and materials to make it better鈥攁ll while proving it scientifically. And if we live from that, and also build our brand because we now started consumer marketing around the dialed-in mindset, we believe we can have a powerful and beautiful brand that also works incredibly well in concert with all of our great partners.

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The outdoor industry has seen M&A accelerate in recent months, as evidenced by a spike in both strategic and financial deals involving brands, retailers, and even media.

Now that list includes yet another type of business鈥攃onsumer research provider. This week, NPD Group, the Port Washington, New York-based global firm that specializes in market analysis (including the outdoor industry), announced it had agreed to be acquired by the private equity firm Hellman & Friedman for an undisclosed amount.

Under the terms of the deal, NPD鈥檚 executive chairman, Tod Johnson, and its CEO, Karyn Schoenbart, will retain a minority stake in the business and continue serving on the NPD board of directors.

鈥淎s a leading source of market information and advisory services for general merchandise and foodservice, NPD is committed to helping our clients and the industries we serve achieve data-driven growth for many years to come,鈥� Johnson said. 鈥淗&F shares our focus on long-term growth and has the resources and expertise to not only continue but also accelerate NPD鈥檚 momentum and long track record of success. Both Karyn and I are delighted to have the opportunity to partner as minority investors alongside H&F as we work in close collaboration on a long-term strategic plan and transition over time to the next generation of NPD leadership.鈥�

Added Schoenbart, 鈥淚n a period of rapid change, NPD has helped guide our clients with omni-channel data, industry expertise, and analytics to help them understand unprecedented market shifts. It has been exciting to play an increasingly important role in the strategies of our clients by providing insight into what is happening today and what to anticipate in the future. We expect H&F to continue our tradition of client partnership and innovation with new products, data sources, and next-generation platforms to make our information even more comprehensive, accessible, and actionable.鈥�

NPD, whose roots date back to 1966, said it鈥檚 the 鈥渆ighth largest market research company worldwide, with operations in the Americas, Europe, and APAC, covering more than 20 industries.鈥�

The company added that its innovations 鈥渋nclude launching the first point-of-sale tracking services for general merchandise sectors, developing the in-home scanning technology used by many research companies around the world today, pioneering online surveys, introducing the breakthrough digital measurement methodology that powered Media Metrix, and building the first receipt-based market measurement system.”

Those credentials were attractive to H&F, the San Francisco-based PE firm whose portfolio includes companies from such sectors as energy, financial services, health care, insurance, retail, and software.

鈥淩apidly evolving consumer expectations and the growth of e-commerce are accelerating the pace of change in the retail landscape,鈥� said Blake Kleinman, a partner at H&F. 鈥淚n an environment of unknowns, the ability for companies to use omni-channel analytics to measure and improve performance is more important than ever before, and NPD is extremely well-positioned to provide these critical insights to its customers and retail partners.鈥�

NPD Causes Controversy in the Outdoor Industry

NPD publishes all manner of outdoor sales data, but the longtime firm came under fire from Grassroots Outdoor Alliance earlier this year for one of its claims regarding specialty retail sales.

In the January 2021 edition of Outdoor Retailer magazine, NPD analyst Dirk Sorenson wrote that sales at outdoor specialty retailers had declined 32 percent through October 2020, adding that 鈥渙utdoor specialty retailers have faced challenges due to store closures.鈥�

Grassroots refuted the claim, pointing out that only one member shop had closed鈥攄ue to retirement, no less鈥攁nd that of its 73 members stores at the time (a number that has since grown to nearly 100), only two reported their point-of-sale (POS) data to NPD.

OBJ contributor Marc Peruzzi outlined the dispute in an article earlier this year,聽which first appeared in OBJ鈥檚 summer magazine and later online.

鈥淚n a letter to Outdoor Retailer and NPD, Grassroots demanded clarification and an apology,鈥� Peruzzi wrote. 鈥淭he magazine published their demands. Some back and forth between Grassroots and NPD followed, but Grassroots wasn鈥檛 satisfied with NPD鈥檚 counterargument. There鈥檚 too much at stake, says Rich Hill, Grassroots鈥檚 executive director. If a CEO on the vendor side believes that specialty is in trouble, Grassroots asks, what happens to the co-marketing dollars or the test products designed for specialty shops and their opinion leader clientele? When CEOs rely on incomplete or just plain wrong retail sales data, Hill says, those types of investments get cut. In effect, the prophetic narrative 鈥榮pecialty is in trouble鈥� fulfills itself.鈥�

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Eagle Creek will live on.聽

VF Corporation announced today that Travis Campbell, the company’s former president of emerging brands, has acquired Eagle Creek from VF for an undisclosed amount. OBJ obtained a copy of the letter that VF President and CEO Steve Rendle sent to employees this morning. 鈥淚鈥檓 pleased to announce that VF reached an agreement with Travis [Campbell], who is now the new owner of the Eagle Creek brand,鈥� the letter read. 鈥淭his sale includes all Eagle Creek assets and liabilities. It does not include any Eagle Creek or VF associates.鈥澛�

Campbell has served as president of Smartwool, GM Americas of The North Face, and president of the fly-fishing company Far Bank Enterprises. For the last 18 months, he has been president of emerging brands at VF, managing a group of companies which Campbell defines as each worth under $1 billion, like JanSport, Smartwool, Altra, and Eagle Creek.

OBJ broke the news in early June that VF would be sunsetting the iconic pack and travel brand by the end of the year because it 鈥渘o longer makes strategic or financial sense.鈥� It was not long after that Campbell鈥檚 wife asked him the obvious question: 鈥淲hy on earth are you not trying to buy that business?鈥澛�

How Campbell Acquired Eagle Creek

Campbell had already decided to move on from VF and was trying to plan his next move. He had come to realize that he missed running, nurturing, and growing a single brand, but he wanted to keep his family rooted in Steamboat Springs, Colorado. That鈥檚 when he decided to put together a proposal for VF to buy Eagle Creek. 鈥淣obody wanted to see the brand go away,鈥� said Campbell. 鈥淚t was an economic decision that made sense for VF.鈥�

But it devastated founders Steve and Nona Barker. In an exclusive interview with OBJ after VF鈥檚 announcement, Steve Barker said, 鈥�Eagle Creek is a great and viable brand. It has a great future and shouldn鈥檛 die.鈥�

Campbell said that when he approached VF with the idea of an acquisition, he got nothing but positive reactions. 鈥淚t was a fast transaction because of the level of trust that existed between me and VF,鈥� he said.

Rendle is happy with the outcome. 鈥淔rom the VF perspective, it enabled us to pursue an efficient and value-enhancing alternative to winding down the brand,鈥� he said. 鈥淔or Eagle Creek, its loyal consumers, and the outdoor industry overall, we鈥檙e pleased that the brand will continue on under the ownership of Travis, who has extensive industry knowledge and is a proven business executive. His career experience, including leadership positions with VF, The North Face and Smartwool, make him well-positioned to be the next steward of the Eagle Creek brand and continue its legacy.鈥澛�

Campbell Reveals His Plans for the Company

鈥淚t鈥檚 equal parts exciting and terrifying,鈥� said Campbell, who has helped build many brands but has never owned one himself. 鈥淭his is a personal purchase. I am currently the sole owner. As the business grows and evolves, I鈥檒l likely bring in outside capital, probably more from banking than outside equity.鈥�

Campbell said his first goal is to 鈥渄o no harm鈥� to the brand. 鈥淓agle Creek already makes great products in a number of categories,鈥� he said. 鈥淚 want to work on supply chain issues and get back into stock with the best selling products in our line. We will likely trim some products that aren鈥檛 working and over-index on the things that are working. I鈥檒l dig in and listen to former employees and current sales reps and figure it out.鈥�

The Eagle Creek business is currently about 75 percent wholesale and 25 percent direct-to-consumer (DTC). 鈥淲e have a diverse customer base, everything from Grassroots specialty retailers to REI to The Container Store,鈥� Campbell said. 鈥淚 think the ratio will continue to evolve, and we鈥檙e going to want to get better at DTC because it can help the whole ecosystem by telling your brand story directly. But wholesale will always remain super important.鈥�

Campbell acknowledged global travel is at a low point right now due to the pandemic, but he fully expects it to come roaring back. And he intends to be ready when it does. 鈥淭he cool thing is that the brand has already pivoted to close-to-home recreation, with strong sales in things like duffle bags and packing cubes,鈥� he said. 鈥淭hose products that facilitate local camping trips have been really working for the business while the business travel stuff has been lagging.鈥�

The brand鈥檚 HQ will be in Steamboat Springs, Colorado, but Campbell confirmed the new Eagle Creek will primarily be a virtual organization. 鈥淚t鈥檚 tricky,鈥� he said. 鈥淢y desire would be to have everyone based in Steamboat, but the practical reality of housing constraints in mountain towns these days means there鈥檚 no way I鈥檒l be able to bring everyone in.鈥�

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John Merris and his team at the outdoor firepit brand Solo Stove didn鈥檛 set out to become serial acquirers, but that鈥檚 exactly what happened when the private equity-backed company went from zero acquisitions to three bolt-ons in the span of just a few months.

Solo Stove on Wednesday closed on its acquisition of men鈥檚 outdoor apparel brand Chubbies Shorts, a deal that followed the May acquisition of Oru Kayak and the August acquisition of paddleboard maker Isle.

The result of the buying spree is a new outdoor platform called Solo Brands, with the quartet of businesses now working together under the majority ownership of Boston-based Summit Partners.

Merris told 国产吃瓜黑料 Business Journal the reason for the spate of additions was simple: Solo Stove found a trio of like-minded brands that wanted to partner not only because of their outdoor-focused product lines but also because each is customer-obsessed with a penchant for direct-to-consumer sales and a strong focus on giving back to communities. Together, each brand adds value to the other.

鈥淲e just started leaning in hard on everything that these brands collectively could bring together and we started envisioning our customers in Chubbies gear feeling great about themselves, or out on the water on an Isle paddleboard or in an Oru Kayak, or sitting around their Solo Stoves at camp,鈥� he said Wednesday. 鈥淚t just started all feeling right, and we thought, 鈥楾hese brands are in our wheelhouse, and maybe we鈥檙e thinking about something even bigger than we initially thought.鈥� And the idea of Solo Brands was born.鈥�

A Shared Value of Delighting Customers

With the last of the three deals formally completed and closed, Merris becomes CEO of the Solo Brands platform and brand president for ten-year-old Solo Stove.

He said that while 鈥渁cquire is the accurate and right word鈥� to describe the addition of Oru, Isle, and Chubbies, 鈥渋n a lot of ways we just feel like we鈥檙e just partnering with great brands.鈥�

For one, there are no redundancies with the union, no need to eliminate entire departments like finance or marketing or HR. Each brand will operate as its own P&L from its current headquarters location鈥擲olo Stove in Southlake, Texas; Oru Kayak in Oakland, California; Isle in San Diego; and Chubbies in Austin, Texas鈥攁nd with current teams intact. The same goes for each company鈥檚 leadership structure, Merris added.

鈥淭hey鈥檙e not being acquired and thrown to the side, and that makes this unique,鈥� Merris said. 鈥淭hey鈥檙e excited to lean into this together as a team and do something that has never been done before, which is bringing together a house of outdoor enthusiast lifestyle brands that are digitally native, and everybody wants to stay in and be a part of it. Everybody wants to continue to build their unique communities but then also share across those communities, which I think is pretty special.鈥�

Solo Stove employed about 140 people, and now Solo Brands, with the addition of the three new companies, will have more than 220 employees, Merris said.聽

鈥淲e鈥檝e almost doubled in size in terms of headcount through the acquisitions and we鈥檝e done that without a single person being redundant and having to be let go, which has been awesome,鈥� he said.

Merris declined to disclose the financial terms of the deals, but he emphasized that aligning with Oru, Chubbies, and Isle was about much more requiring an EBITDA minimum or some other metric on a balance sheet.聽

Instead, it鈥檚 about the shared philosophy of providing great product for consumers and delivering that product primarily, though not exclusively, via a direct channel. Their similar approach to customer experience鈥擬erris said the four companies all hold the aim of 鈥渄elighting the consumer鈥濃�攚as a key unifier in bringing them together under one umbrella.

鈥淭his is not a financial play for us,鈥� he said. 鈥淲e truly believe that the next decade and beyond is going to be led by direct-to-consumer, digitally native brands that know how to deliver and are obsessed about delivering an exceptional customer experience. We believe that, if done right, bringing brands together as we鈥檝e done is better than any one of us could have done it by ourselves. It鈥檚 going to give us improved access to the customer, it鈥檚 going to give our customer better options.鈥�

The Pandemic鈥檚 Role

Another driver behind the deals, undoubtedly, was the pandemic. Not only did COVID-19 spur more people to venture outdoors and fuel demand for firepits, kayaks, apparel, and SUPs, but the brands that make those products found that going to market on their own, without the help of a retailer, was a way to control distribution and messaging while preserving margins.

鈥淐OVID accelerated an emphasis on the outdoors, and also around direct-to-consumer brands鈥攂rands that were figuring out ways to make it more convenient and faster and easier for customers to transact with them online,鈥� Merris said.

Yet another commonality for the four brands鈥攇iving back to communities. Solo Brands鈥� core values are 鈥淒o Good,鈥� 鈥淟ive Grateful,鈥� 鈥淗ave Integrity,鈥� and 鈥淏e Authentic.鈥�

Merris said even the other three brands and even the platform鈥檚 backer, Summit Partners, live those ideals. He called that a rarity in the private equity world, which often gets tagged with the 鈥渟lash and burn鈥� reputation for buying companies, finding efficiencies such as cutting costs, and milking every dollar out of the business.

鈥淥ur whole brand mantra at Solo Brands and Solo Stove has been around 鈥榗reate good,鈥� and that鈥檚 what we鈥檝e leaned into and from the beginning. That鈥檚 what we continue to lean into,鈥� Merris said. 鈥淚t鈥檚 important, in my role, to make sure that we鈥檙e partnered with the right sponsors and with the right backers that have that same mentality and that same commitment of creating good. Fortunately, we found that in Summit.鈥�

More Deals on the Horizon?

Something Solo Stove found in its partnership with Oru, Isle, and Chubbies is a series of shared synergies across the businesses.

For example, Solo Stove operates 800,000 square feet of warehouse and fulfillment space across the United States and now the Netherlands, and the brand will soon open an owned fulfillment center in Toronto for Canadian customers. Those facilities will eventually handle fulfillment for all four brands, Merris said.

鈥淲hat we鈥檝e done at Solo Stove is bring most every competence in-house,鈥� he said. 鈥淲e realized several years ago that to do a great job for our customers, we needed to own the process, and that was across the board鈥攆rom marketing execution to operations to warehousing fulfillment to supply chain to product development to customer service. We don鈥檛 outsource those services.鈥�

When OBJ spoke with Merris on Wednesday afternoon, the ink was still drying on the third and final contract of Solo Stove鈥檚 acquisitions, but that didn鈥檛 mean the topic of more deals was off the table. After all, M&A is booming in the outdoor space, one recent example being a similar platform that MacNeill Pride Group has created with Klymit, GCI Outdoor, and Orca.

Additions to Solo Brands appear possible, even likely. As Merris pointed out, there鈥檚 no proof-of-concept stage needed with the nascent holding company鈥檚 portfolio. Each brand will handle business as usual鈥攚ith the benefit of some operational upgrades thanks to the shared synergies.

That allows Merris, Summit, and the Solo Brands leadership team the freedom and flexibility to begin scouting for new assets to target as consolidation ramps up across the outdoor space.聽

鈥淥ur criteria is a little bit more narrow than what you have seen in the outdoor industry in terms of consolidation, but I do think that M&A will continue to happen,鈥� Merris said. 鈥淥ur brands are growing, acquiring new customers, growing their communities, and launching new products. That means we鈥檒l continue to look for brands we think fit great into the Solo Brands platform. If we find them, nothing will stop us from doing our best to partner with them.鈥�

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MacNeill Pride Group (MPG), the Brentwood, Tennessee-based portfolio company of private equity firm Centre Partners, has bolstered its outdoor offerings with the acquisition of camping gear brand Klymit.

The company on Friday announced it has added the Kaysville, Utah-based outdoor brand to its portfolio for an undisclosed amount.

Formed in 2007, Klymit designs and manufactures outdoor sleeping pads, pillows, blankets, tents, sleeping bags, and other camping accessories. The company鈥檚 gear is 鈥渄esigned and tested in the Wasatch mountains of Utah to help customers 鈥楽leep 国产吃瓜黑料鈥� comfortably,鈥� as its tagline claims.

MPG saw the addition as a logical next step for its rapidly expanding collection of outdoor assets which includes GCI Outdoor and ORCA.

鈥淜lymit鈥檚 distinctive outdoor products, authentic brand, and innovation-focused culture are a natural fit with our growing platform of outdoor brands,鈥� said Keith Bornholtz, CEO of MPG. 鈥淭his acquisition expands our portfolio into new, complementary markets, enabling our brands to meet multiple consumer needs as they spend more time outside. This clearly furthers our goal of providing consumers with brands that enhance every outdoor experience so they want to come back again and again.鈥�

Added Cory Tholl, president and CEO of Klymit: 鈥淚 am thrilled that Klymit will join MPG鈥檚 portfolio of innovative outdoor brands. This partnership will enable Klymit to reach more outdoor enthusiasts with the ultimate mission of getting more people outside with the people they care about.鈥�

MPG said Tholl will remain with the company.

The Klymit acquisition follows another big outdoor addition made by MacNeill Pride Group (MPG) in recent months. On May 7, MPG announced it had acquired GCI Outdoor, the quarter-century-old maker of camping tables, chairs, and other outdoor equipment.

MPG acquired Orca Coolers in 2020. All three of the company鈥檚 outdoor brands鈥擪lymit, GCI Outdoor, and Orca鈥攁re exhibiting at this year鈥檚 Outdoor Retailer Summer show in Denver, Colorado.

The announcement comes as private equity firms continue to show interest in the outdoor market and eagerly deploy dry powder for innovative gear makers in this space. Notable deals of late include Mammut being sold to the PE firm Telmos Capital and Superfeet being acquired by Westward Partners.

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Superfeet, the Washington-based insole brand, announced internally to employees this week that the company has been acquired by Westward Partners, a Seattle private equity group, for an undisclosed amount. The company plans to announce the news more broadly today.

Dave Howard, chief operating officer of the 100 percent employee-owned brand, told 国产吃瓜黑料 Business Journal that after the acquisition, which was finalized June 15, “Superfeet will be structured in a way that better positions us for the growth we have planned in our near future. No positions will be eliminated because of this transaction. If anything, we will be amplifying our focus on people, product, innovation, and the unique culture we are known for.”

Westward Partners, now the majority owner of the brand, “exclusively invests in Northwest companies with strong performance records, clear vision, and proven leadership teams,” according to the firm.聽

鈥淪uperfeet has incredible products, a world-class team, a values-driven culture, and a solid vision for the future,” said Erik Tolzmann, founder and partner at Westward Partners. “Together we plan to grow the brand, product portfolio, and geographic reach, ultimately getting Superfeet to more of the people who need them.”

Howard said that every employee at Superfeet will directly benefit from the deal, given the nature of Superfeet’s employee-owned structure.

“The ESOP [employee stock ownership plan] was established in 2006 to ensure Superfeet employees would have a secure future based on the success we achieved as a company,” Howard said. “In 2015, we became 100 percent employee-owned. The acquisition from Westward is a culmination of that vision and delivers on that promise to our employees. The actual deal took about nine months.”

Superfeet agreed to the acquisition with Westward, Howard added, because the private equity firm shared many of the company’s core values. Because of that alignment, there will be no change in the near-term to any of Superfeet’s business functions.

“From a short-term perspective, there will be no change operationally,” said Howard. “Over the past five years, Superfeet has been building a streamlined, efficient supply chain and the foundations for growth within our operations and logistics teams. Looking toward the future, Superfeet and Westward Partners plan to leverage each other鈥檚 strengths to expand the availability of the Superfeet shape and personalization technology. As we continue to grow with new initiatives, products, and customers, operations and support will continue to evolve to meet the demands of the business and our customers’ needs.”

As Superfeet transitions away from its employee-ownership model, the company will change structure from an S Corp to an LLC.

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Over the past 15 months, as COVID fueled a surge in all outdoor activities, John Walbrecht realized that Clarus Corp.鈥檚 five-brand portfolio had a glaring hole.

The publicly traded, Salt Lake City, Utah-based holding company already owned backcountry equipment brand Black Diamond, avalanche beacon maker Pieps, skincare company SKINourishment, and a pair of bullet manufacturers.

Each one is what Walbrecht, the president of Clarus, calls a 鈥渟uperfan鈥� brand. These are companies with four commonalities: strong market share for at least one product in their primary category, a history of innovation, a near 100 percent brand awareness among its core audience, and a singular focus on product development.

But while Clarus鈥� superfan brands helped consumers explore the outdoors by making a multitude of premium gear, the company needed an asset that could help those enthusiasts safely and securely transport said gear to their local river, trail, park, or crag.

Walbrecht and his executive team believed they should target a roof rack maker and identified Rhino-Rack, an Australia-based brand that checked all the boxes of a superfan brand and tapped into the current outdoor trends. And this week, Clarus announced it will round out its portfolio by acquiring the company for $198 million.

鈥淲e have a very clear view of how we define superfan brands, and we鈥檙e always looking for the right ones at the right time to join the Clarus portfolio,鈥� Walbrecht told 国产吃瓜黑料 Business Journal. 鈥淩hino-Rack is one of those in a category we鈥檝e been watching for a while and seeing huge opportunities.鈥�

More than Numbers

Those huge opportunities are primarily because of COVID, Walbrecht said. The pandemic has driven more people outside to embark not just on epic adventures but also what he calls microadventures鈥攁n overnight backpack, a weekend of mountain biking, a three-day paddling trip, a hike out the back door.

鈥淭he market has just exploded,鈥� Walbrecht said. 鈥淭he COVID-driven rise in outdoor activities has made that even more apparent today. It has become the new escape.鈥�

What better way to outfit the new form of escape than by acquiring a roof rack maker with a similar brand ethos as the rest of the assets in Clarus鈥� portfolio, Walbrecht thought.

鈥淓very brand has a product,鈥� he said. 鈥淓very brand has an image, whatever that may be鈥攇ood or bad. What makes a superfan brand is this emotional connection to the product and the brand that becomes a definer to who your ethos is.鈥�

Rhino-Rack, founded in 1992 by Rich Cropley in Sydney, Australia, makes a collection of roof racks and accessories it sells around the globe. In the 12 months ended March 31, the brand generated $90 million in revenue and $16.7 million of adjusted EBITDA. Clarus in 2020 posted revenue of $224 million, so Rhino-Rack, which will operate independently as a wholly owned, indirect subsidiary of Clarus, boosts the company鈥檚 top line by more than a third. Those interested can find more financial details on Clarus鈥� website.

But Walbrecht looked beyond the numbers in his pursuit of this deal. He instead focused on the fandom the brand garners at off-road events or on popular YouTube channels. He zeroed in on Rhino-Rack鈥檚 quality rather than quantity of products. He connected with the company鈥檚 owner and its brand ethos.

鈥淵ou can鈥檛 just manufacture superfan brands because you like the term or you want to be one,鈥� Walbrecht said. 鈥淪uperfan brands come about a certain way. They鈥檙e founder led. They鈥檙e product centric. What we love about Rhino-Rack is exactly all that. Rich Cropley started this brand to make the best rack system for his world, which just happens to be Australia and the Outback.鈥�

Cropley, who called Rhino-Rack a 鈥済o-to鈥� brand that has been tested and proven in the rugged terrain of the Outback, said Clarus was the ideal home for the company鈥檚 next chapter. The holding company offers the right synergies for helping grow Rhino-Rack, and its new superfan portfolio mates are a perfect fit.

鈥淎s a family man and someone committed to running the business with a family-style culture, it was imperative to have a very close alignment with a partner company that lived and breathed the same ethos in the outdoor space,鈥� Cropley told 国产吃瓜黑料 Business Journal. 鈥淎t Rhino-Rack, we have a passion for customers, we strive for operational excellence and, most importantly, a relentless drive for innovation. This can only be achieved with great leadership and a loyal and passionate team of staff. I saw these same qualities in Clarus.鈥�

What鈥檚 Next for Rhino-Rack?

Clarus鈥� goal now is to grow the brand globally but especially in North America. Even though Rhino-Rack has strong brand awareness among superfans, only 20 percent of Rhino-Rack鈥檚 sales occur here with the remaining 80 percent from Australia and New Zealand.

Walbrecht said the company is bringing its innovate-and-accelerate strategy to Rhino-Rack, adding new product lines such as rooftop tents. Clarus will ramp up manufacturing and distribution in markets around the world with an emphasis on the North America market through the same sales channels in which Clarus brands such as Black Diamond thrive.

鈥淭oday, Rhino-Rack sells through Backcountry.com, Moosejaw, and accounts like that,鈥� he said. 鈥淚 think there鈥檚 an opportunity for an explosion in growth by making more product and innovating for the U.S. market. We don鈥檛 have an Outback, but we do have places like Moab, and we do have the Rockies, and the everyday consumer and all the things they want to take to go out further to wherever their new micro-adventure takes them. We will continue to preserve and accelerate the superfan nature of Rhino-Rack.鈥�

Cropley couldn鈥檛 be more excited to be joining a portfolio of brands cut from the same innovative cloth鈥攅specially at a time when demand for outdoor products is as expansive as the Australian Outback where Rhino-Rack was forged.

鈥淭he outdoor space is full of potential and has so much to offer these days,鈥� Cropley said. 鈥淥verlanding, exploring, hiking, cycling, skiing, 4WD-ing, you name it. Every country has amazing places and activities to do and explore right in their backyard. Rhino-Rack saw the opportunity to partner up with a like-minded outdoor adventure company that could accelerate and grow our potential to provide more equipment for our collective superfans. After maturing as a company in its systems, processes, and relocation, Rhino-Rack saw the next opportunity as one to expand. We want to be the world鈥檚 number-one roof rack company. And bringing in a like-minded partner cemented the timing.鈥�

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