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
