KL Outdoor, maker of Sun Dolphin kayaks, and GSC Technologies, maker of Future Beach kayaks, are being combined to form a single company by New Water Capital which acquired KL Outdoor in December 2016 and GSC Technologies on April 7, 2017.
KL Outdoor manufactures kayaks, stand-up paddle boards, canoes, paddle boats, hunting blinds, sleds and portable restrooms and related accessories under the Sun Dolphin, Evoke, Extent and Third Coast (all related to the company’s watersports segment), Terrain (outdoor hunting products) and Five Peaks (portable restroom products) brands. The company, led by President Tom Harris, is based in Muskegon, MI (www.kloutdoor.com).
GSC Technologies is a designer and manufacture of kayaks and watersports equipment; storage and organization products; folding tables and chairs; utility shelving systems and cabinets; closet systems; refuse and recycling products; and a variety of other household products. GSC brands – which include Future Beach, Equinox, Patriot, Heritage, and Viper – are carried by several blue-chip mass and specialty sporting goods retailers. The company has manufacturing and distribution facilities in the US, Canada, and China and is headquartered near Montreal in Saint-Jean-sur-Richelieu, QC (www.gsctechnology.com).
“This merger will create the largest kayak company in the world,” said Mark Becker, a Partner at New Water Capital. The merger will result in a company with increased capacity to accommodate fast growing customer demands, a broader product offering and brand portfolio, strengthened financial standing and multiple product shipping points. “The combination will create, we believe, the only vertically-integrated kayak manufacturer with rotational molding, thermoforming, and blow molding technologies as well as injection molding capabilities,” added Mr. Becker.
“Our two companies are a natural fit, with products and areas of expertise that complement one another and provide a tremendous opportunity to expand into new product lines in the rapidly growing outdoor water sports market,” said Robert Farber, GSC president.
New Water invests in lower middle market companies with revenues between $30 and $300 million. Sectors of interest include consumer products, retail, and industrial manufacturing & services. The firm closed its first private equity fund at the hard cap of $406 million in July 2015. New Water was founded in September 2014 and is based in Boca Raton (www.newwatercap.com).
© 2017 Private Equity Professional | April 25, 2017
