Gridiron Capital has agreed to sell its controlling interest in Good Sportsman Marketing Outdoors (GSM) to Platinum Equity. Gridiron acquired GSM, a provider of accessories used in the hunting, sport shooting, and outdoor enthusiast markets, from Sentinel Capital in November 2020.
GSM is a developer, manufacturer, marketer, and seller of a portfolio of more than 50 branded hunting, fishing, and sport shooting products including Stealth Cam (game scouting cameras); Cyclops (specialty outdoor lighting); Walker’s (hearing protection and enhancement devices); Western Rivers (game calls); American Hunter (game feeders); HME (hunting knives and tools); and SME (targets and related accessories). Other company-owned brands include Muddy Outdoors, Birchwood Casey, Big Game, and Hawk.
GSM’s products are sold through online retailers, sporting goods stores, mass merchants, outdoorsman retailers, farm and fleet stores, and dealers/distributors across the US and Canada. GSM, led by CEO Eddie Castro, was founded in 1999 and is headquartered in Irving, Texas.
“Since the first day, Gridiron has been a great partner in helping us accelerate our M&A engine and expand GSM into new subscription and outdoor categories,” said Mr. Castro. “The Gridiron investment team and Centers of Excellence have truly been value-added partners through this exceptional growth phase for GSM.”
During Gridiron’s ownership term, the company closed 18 add-on acquisitions including the recent and notable buys of Plano Synergy’s hunting and archery brands (April 2021), Gary Yamamoto Custom Baits (October 2021), SOG Knives (December 2021), Bill Lewis Outdoors (May 2022), and Dobyns Rods (May 2024).
“In 2020, Gridiron Capital partnered with Eddie Castro and the GSM management team to build an industry-leading outdoor enthusiast platform. Over the course of our partnership, GSM has grown significantly through strategic expansions into fishing and other rugged outdoor categories, while dramatically scaling the cellular and app subscription business, completing 18 acquisitions of iconic brands, and driving consistent organic growth through new product development,” said Kevin Jackson, Gridiron’s managing partner. “The GSM team’s passion for serving their customers and winning in the marketplace is contagious, and we are incredibly proud to have been GSM’s partner during this exciting time. We are confident that GSM is positioned for even greater success going forward.”
“The GSM team have been incredible partners over the past few years, and together, we have created the leading outdoor enthusiast platform, poised for continued M&A consolidation, category expansion, and organic growth. Rooted in a shared vision and culture, our partnership with Eddie and his team has been a true partnership in every sense of the word,” said John Warner, a managing director at Gridiron.
“Our work has proven that GSM is highly regarded among consumers and channel partners for its customer service, diverse product portfolio and efficient operations,” said David Glatt, a managing director at Platinum. “The company is an excellent platform for growth in a highly fragmented market and has proven to be an attractive home for brands looking to increase their reach and maximize their potential.”
Platinum Equity previously owned Fishing Holdings, an Arkansas-based manufacturer of Ranger Boats, Stratos and Triton fishing boat brands, which the firm sold to Bass Pro Group in 2015 after a five-year hold.
“We will partner with the company to expand its offerings through in-house R&D and pursue the large and growing pipeline of prospective acquisitions in both existing product categories and new segments,” added Mr. Glatt. “We share the company’s passion for serving outdoor enthusiasts and are excited to get to work.”
“The popularity of outdoor recreation is driving increased demand for a wide range of innovative, technically advanced products tailored for enthusiasts and adventure seekers of all kinds,” said Louis Samson, a co-president of Platinum. “The sector is characterized by an attractive combination of resilience, growth potential and M&A opportunities, which suits our firm well. We believe GSM’s distribution network, experience bringing new products to market, rigorous quality control and care for its customers position it well to capitalize on those dynamics and diversify its portfolio to meet the growing demand.”
Platinum Equity invests in a range of industries including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, and telecommunications. Beverly Hills-headquartered Platinum was formed in 1995 by Tom Gores and over the past 28 years has completed more than 450 acquisitions.
Gridiron invests in manufacturing, service, and specialty consumer companies with enterprise values from $75 million to $600 million and EBITDA from $10 million to $60 million. Sectors of interest include branded consumer, business-to-business and business-to-consumer services, and niche industrial. Gridiron is investing out of its fifth fund which closed above target in October 2023 with $2.1 billion of capital. Fund V is the largest fund the firm has ever raised and is markedly higher than the firm’s fourth fund which closed in December 2020 with $1.35 billion of capital.
Financing for Platinum’s buy of GSM is being arranged by Bank of America Merrill Lynch.
Robert W. Baird & Co. was the financial advisor to GSM and Gridiron on this transaction which is expected to close before the end of the third quarter.
© 2024 Private Equity Professional | July 25, 2024
MPE Partners has made an investment in family-owned LA-CO Industries, a manufacturer and supplier of specialty chemicals and industrial marking products.
“I am incredibly excited for the future of LA-CO Industries with the investment of MPE, a strong partner that closely aligns with our vision for growth and greater success,” said Mr. Kleiman. “The partnership recognizes LA-CO’s 90 years of industry-leading achievements as the foundation for development of new products and opportunities for growth across the globe to take the company into a new era of success.”
“We are thrilled about our investment in LA-CO Industries and partnership with Benjamin and the rest of the management team,” said Graham Schena, a partner at MPE. “Since its founding over 90 years ago, the company has established a market leading position driven by its wide breadth of high-quality, performance-based products all while delivering premier customer service.”
Cleveland and Boston-based 
Agellus Capital has held a final and hard cap close of its debut fund, Agellus Capital Private Equity Fund I LP (Fund I), with total limited partner capital commitments of $400 million. The new fund was oversubscribed and closed above its $350 million target after just five months of fundraising.
NewSpring has held a final and oversubscribed close of NewSpring Mezzanine Capital V LP with $390 million of capital commitments.
“Our goal at NewSpring Mezzanine is to build great companies through strong partnerships. We pride ourselves on building close relationships with financial sponsors, intermediaries, and portfolio company management teams to form strategic alliances that produce lasting value for all stakeholders,” said Greg Barger, a general partner at NewSpring. “We’re thrilled with the support of our investors as the number of attractive opportunities in the lower-middle market continues to rise and look forward to continuing to expand our portfolio.”
“At NewSpring Mezzanine, we leverage our expertise to help business owners and CEOs optimize their capital structure, pursue strategic acquisitions, and make operational movements that are in line with their vision for the company,” said Anne Vazquez, a general partner at NewSpring. “As demand for mezzanine debt and other flexible capital solutions continues to rise among lower-middle-market businesses, we look forward to partnering with more great companies while putting NSM V to work on behalf of our investors.”
