Norwest Equity Partners (NEP) has made a significant investment in Wahoo Fitness, a provider of smart training products.
Wahoo’s products include indoor bike trainers, GPS bike computers, apps and sensors for cyclists, runners, and fitness enthusiasts. The company’s product portfolio includes KICKR indoor cycling trainers, ELEMNT cycling computers, and TICKR heart rate monitors.
Wahoo’s products are sold in over 50 countries through retailers as well as through the company’s own direct-to-consumer website. The company, founded in 2010 by CEO Chip Hawkins, is headquartered in Atlanta and has more than 100 employees (www.wahoofitness.com).
NEP’s investment marks the first time Wahoo has partnered with an institutional investor. “We are excited to work with an investment partner like NEP,” said Mr. Hawkins. “Our partnership with NEP is a direct reflection of the success we have built to date, and we are excited for the opportunities that lie ahead with their team by our side. We are confident our partnership with NEP will help us achieve our next phase of growth.”
“Wahoo represents a highly reputable brand in the evolving fitness technology space through its ecosystem of category-leading products,” said Tim DeVries, NEP Managing Partner. “Chip Hawkins and his team have generated impressive growth during Wahoo’s short history, and their work has positioned the company for continued growth not only within its current offerings but also through additional products and channels in the near future. NEP is fortunate to partner with the Wahoo team, and we view this opportunity as a great fit with our active lifestyle investment platform.”
NEP’s experience in the active lifestyle sector includes Movati Athletic, a fitness club operator in Canada (acquired in October 2014); The Edge Fitness, a fitness club operator on the East Coast (acquired in December 2014); Christy Sports, a winter sports specialty retailer (acquired in October 2015); Bowtech, a designer and manufacturer of archery equipment (acquired in June 2013); and Life Time Fitness, a fitness club operator (acquired in June 1996 and exited via an IPO in October 2006).
NEP makes equity investments of $30 million to $250 million in companies that have more than $10 million in EBITDA. Sectors of interest include agriculture, business services, consumer, distribution, industrials, energy, and healthcare. In April 2015, NEP closed Norwest Equity Partners X LP, a $1.6 billion fund and Norwest Mezzanine Partners IV LP, an $800 million fund formed by NEP’s affiliated mezzanine investment firm, Norwest Mezzanine Partners. NEP is headquartered in Minneapolis (www.nep.com).
Baird (www.rwbaird.com) was the financial advisor to Wahoo.
© 2018 Private Equity Professional | July 26, 2018
CID Capital has acquired ProSource, a wholesale distributor of plumbing supplies.
ProSource’s operating metrics include 98% fill rates and 90%+ on-time delivery rates. The company has experienced double-digit annual growth rates for the last five years. “ProSource’s approach to customer service and their sophisticated technical support combined with a broad product mix, on-time delivery, and an excellent reputation made this an ideal investment for CID,” said Eric Bruun, a Managing Director at CID. “We are enthusiastic about our newly formed partnership with Grover and Tonya Martin and the entire ProSource team.”
CID Capital makes majority investments in lower-middle-market companies that have revenues of at least $10 million and EBITDA of $3 million to $10 million. Sectors of interest consumer and industrial products. The firm is based in Indianapolis (
Storage Battery Systems, a portfolio company of High Road Capital Partners, has acquired Nolan Power Group.
High Road acquired Storage Battery Systems (SBS) from Supply Chain Equity Partners in May 2017. SBS is an assembler and distributor of branded, rechargeable industrial batteries and test equipment used in warehousing and logistics, and standby and uninterruptible power supply applications. Products and services include Lithium-Ion, Nickel Cadmium, sealed VRLA (valve-regulated lead-acid batteries in both absorbent glass mat (AGM) and Gel formats), wet cell batteries, as well as custom-designed power products; chargers, testing and monitoring equipment; and storage systems.
“Nolan Power is a leading provider of critical standby power solutions and services, and its top-notch technicians and commitment to service and training have positioned the company as the go-to provider in the Gulf Region,” said Ben Schnakenberg, a Partner at High Road. “Nolan Power’s service offering is highly complementary to SBS, and we look forward to supporting both companies as they look to leverage these capabilities to accelerate growth.” Mr. Schnakenberg led the transaction for High Road and was assisted by Nick Martino, Operating Partner; Scott Rubino, Principal; and Tom Cassidy, Associate.
High Road invests in manufacturing, service, or value-added distribution businesses with revenues of $10 million to $100 million and EBITDAs of $3 million to $10 million. High Road has completed 49 transactions – 18 platform investments, 24 add-on acquisitions and seven exits – since its founding in 2007. High Road is based in New York (
Outward Hound, a portfolio company of J.W. Childs Associates, has acquired Wholesome Pride, a maker of natural ingredient pet treats. This is the first add-on acquisition for Outward Hound since J.W. Childs acquired the company from The Riverside Company in December 2017.
“We’re excited to add the Wholesome Pride line of products to the Outward Hound portfolio,” said David Fiorentino, a Partner at J.W. Childs. “This strategically complementary combination creates exciting opportunities and a new platform for growth.”
J.W. Childs invests in middle market companies based in North America. Sectors of interest include consumer products, specialty retail and healthcare. The firm was founded in 1995 and is based in the Boston suburb of Waltham, MA (
