outdoor equipment

Webster Forms ShelterLogic Group

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Webster Capital has formed ShelterLogic Group to act as a holding company for three investments (one existing and two new) that the firm has made in the outdoor products market.

Rio Brands, acquired by Webster Capital in April 2015 from Guardian Capital Partners, is a designer and manufacturer of beach chairs, umbrellas, cooler bags, beach tables, cots, stadium seats, and patio furniture sold under company-owned brands Rio Beach, Rio Creations and Rio Gear. The company also manufactures and distributes outdoor furniture for the Tommy Bahama and Jimmy Buffet’s Margaritaville brands. The company is headquartered in West Conshohocken, PA (www.riobrands.com).

“After an extensive search, we identified two terrific companies in ShelterLogic and Sojag to combine with our original investment in RIO Brands,” said Don Steiner, Webster Co-Managing Partner.

ShelterLogic is a manufacturer and marketer of fabric-covered, steel frame shelters and canopies that are used in a range of consumer and commercial applications, including as sheds, garages, greenhouses and pop-up canopies. The company is headquartered in Watertown, CT and is led by CEO Jim Raymond and President Robert Silinski (www.shelterlogic.com). ShelterLogic was acquired from RFE Investments and Charter Oak Equity.

Sojag is a designer and marketer of gazebos, sun shelters, solariums and patio furniture. The company is headquartered in Brossard, Quebec and is led by CEO Yves Gagné (www.sojag.com/en).

All three companies – Rio Brands, ShelterLogic, and Sojag – sell their products through a variety of retailers including major home centers, mass merchants, specialty, farm and agriculture stores, warehouse clubs and online retailers.

Webster Capital invests in branded consumer, business-to-business, and healthcare services companies with EBITDAs from $3 million to $15 million and transaction values from $20 million to $100 million. Webster is currently investing its third fund which closed in 2014 with $400 million in capital commitments.  The firm was founded in 2003 and is based in the Boston suburb of Waltham (www.webstercapital.com).

© 2018 Private Equity Professional | June 27, 2018

Sun Capital Partners Sells American Recreation

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Kellwood Company, a portfolio company of Sun Capital Partners, has sold its subsidiary American Recreation Products to Exxel Outdoors.

American Recreation Products (American Rec) makes and markets outdoor gear including tents, backpacks, sleeping bags, outdoor clothing, outdoor furniture, and related camping accessories. American Rec’s family of brands includes Kelty, Sierra Designs, Slumberjack, Wenzel, Ultimate Direction, Mountain Trails, and Instabed. The company sells its products through sporting goods stores and outdoor specialty stores, as well as through the mail order and Internet channels.  American Rec is headquartered in Boulder, CO (www.americanrec.com).

Sun Capital Partners acquired American Rec in February 2008.  Sun invests in leveraged buyouts, equity, and debt in companies that can benefit from its in-house operating professionals and experience. Sun Capital has invested in and managed more than 335 companies worldwide with combined sales in excess of $45 billion since the firm’s inception in 1995. The firm has offices in Boca Raton, Los Angeles, and New York as well as affiliates with offices in London, Paris, Frankfurt, Luxembourg, Shanghai and Shenzhen (www.SunCapPart.com).

Exxel, the buyer of American Rec, manufactures and markets family-style sleeping bags, tents, camping sets, air beds, folding chairs, beanbag chairs, water sports vests, and hunting & fishing apparel.  The company sells its products to  major retailers such as Target, Toys “R” Us, Amazon.com, Walmart and Kmart, as well as sporting goods chains such as Dick’s Sporting Goods, Cabela’s, Academy Sports + Outdoors, Big 5 Sporting Goods, and Mills Fleet Farm. Brand names include four company brands – Suisse Sport, X20, American Trails, and Master Sportsman; licensed brands – Disney, Marvel, DC Comics, Hello Kitty, and Realtree; and other brands manufactured under private label.  Exxel Outdoors was founded in 1997 and is headquartered in Los Angeles (www.exxel.com).

Investment bank Western Reserve Partners advised Exxel Outdoors on its acquisition of American Rec and its financing.  Senior debt will be provided by Wells Fargo Bank and mezzanine debt from Pathlight Capital.  Leading the transaction for Western Reserve was Managing Director Mark Filippell, Director Andrew Male and Vice President Courtney Downs.  Western Reserve Partners is headquartered in Cleveland (www.wesrespartners.com).

“The team at Western Reserve Partners worked hand-in-hand with us during every stage of this deal: approaching the seller, negotiating the purchase, securing the bank debt, securing the mezzanine debt, structuring the equity, and refining the legal documents,”  said Harry Kazazian, Chief Executive Officer at Exxel.  “They committed themselves 100% to our success.”

© 2015 PEPD • Private Equity’s Leading News Magazine • 4-7-15