CONSUMER DEMAND DRIVES GROWTH, PRIVATE BUSINESSES CONTINUE TO SEE BUYER INTEREST - OUTDOOR RECREATION & ENTHUSIASTS SECTOR UPDATE | APRIL 2022
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CONSUMER DEMAND DRIVES GROWTH, PRIVATE
BUSINESSES CONTINUE TO SEE BUYER INTEREST
OUTDOOR RECREATION & ENTHUSIASTS SECTOR UPDATE | APRIL 2022
3
TABLE OF CONTENTS
4 Key Sector Takeaways
5 Outdoor Products Demand Remains Elevated
6 M&A Activity and Buyer Breakdown
7 M&A Market Continues Healthy Pace in Early 2022
8 Business Valuations & Drivers
9 Notable Transactions and M&A Insights
11 Select Transactions
12 Public Company Data
15 Report Contributors
16 Firm Track Record
17 Endnotes
CONTACT OUR OUTDOOR RECREATION &
ENTHUSIASTS SECTOR EXPERTS
Kenneth Wasik
Managing Director
Head of Consumer Investment Banking
917-434-6124
kwasik@capstonepartners.com
Sophea Chau
Managing Director
617-619-3307
schau@capstonepartners.com
Peter Bailey
Director
310-740-3286
pbailey@capstonepartners.com
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Outdoor Recreation & Enthusiasts
Consumer Demand Drives Growth, Private Businesses
Continue To See Buyer Interest
KEY SECTOR TAKEAWAYS
Capstone Partners Consumer Investment Banking Group is pleased to share its Outdoor Recreation &
Enthusiasts report. The market has continued for privately owned brands in the sector, with strategic
and financial buyers aggressively targeting quality companies. 2022 is shaping up to be another strong year
for the space, with elevated outdoor participation lifting consumer demand. Several key report takeaways are
outlined below.
1. Sector brands have achieved robust revenue growth, despite significant supply chain challenges and
inflationary headwinds.
2. Merger and acquisition (M&A) activity reached record levels in 2021, with 2022 transaction volume
continuing at a healthy pace.
3. We are seeing large strategic buyers actively seeking new brands, even in categories outside their
core. Financial buyers continue to be active in supplementing platforms they have built.
4. It remains a favorable market for launching a new deal due to attractive valuations, despite some
inflation and supply chain clouds hovering in the background.
5. Privately owned companies with brand strength, recurring revenue, and customer retention are
attracting premium multiples in M&A processes.
6. Hunting, Fishing, Hiking, Camping, and Small Powersports remain strong segments for M&A with
historically high valuations. Golf is staging a surprising comeback.
7. The market for large discretionary brands in Outdoor Recreation is starting to soften, or at least come
off its recent valuation highs. This includes Boating, Motorcycles, and ATVs. This comes after an
amazing growth spurt during COVID-19.
Capstone Partners has developed a full suite of corporate finance solutions, including M&A advisory, debt
advisory, financial advisory, and equity capital financing to help privately owned businesses and private equity
firms through each stage of the lifecycle, ranging from growth to an ultimate exit transaction.
To learn more about wide range of advisory services and Outdoor Recreation & Enthusiasts sector
expertise, please contact Ken Wasik, Sophea Chau, or Pete Bailey.
4
Outdoor Recreation & Enthusiasts | April 2022
OUTDOOR PRODUCTS DEMAND REMAINS ELEVATED
Heightened interest in outdoor pursuits has according to National Marine Manufacturers
continued through early 2022, fueling what is Association.3 Amid a backdrop of elevated
shaping up to be another strong year for the consumer demand, materials availability and
Outdoor Recreation & Enthusiasts sector. The supply chain disruptions have challenged sector
sector emerged as a standout in the Consumer participants across all subsegments in the
industry during the pandemic, attracting droves of Outdoor Recreation & Enthusiasts space.
new customers and repeat buyers with a
newfound appetite for enthusiast activities and Rising inflation and input costs have pressured
more active lifestyles. Retention of this broadened margins among sector players, however, brands
customer base has been a key focus among sector with category leadership have continued to
players, with effective inventory management and maintain healthy top line growth driven by strong
pricing actions at the forefront of consumer spending on outdoor products. Notably,
priorities amid elevated inflation and supply chain the Sporting Goods segment has experienced a
challenges. Privately owned middle market surge in demand, particularly in the Golf and Biking
companies with brand strength, robust direct-to- markets. Leading golf equipment provider Callaway
consumer (DTC) capabilities, and efficient supply (NYSE:ELY) exceeded its own expectations in Q4,
chains are poised to capture valuable revenue with revenue increasing 90% year-over-year
opportunities through 2022. While the pandemic (YOY), according to its earnings call.4 Elevated
accelerated outdoor activity adoption, this participation in golf, which manifested in an
elevated level of participation is anticipated to additional 300,000 on-course golfers in 2021
continue, with the U.S. Outdoor Recreation (National Golf Foundation)5, has fueled product
Products market forecast to reach $178.3 billion by sales and encouraged acquisition activity in the
2028, growing at a compound annual rate of 7.0%, subsegment. In addition, privately owned bike
according to Verified Market Research.1 brands and manufacturers have experienced
significant buyer and investor appetite through
Leading sector players have achieved healthy early 2022, with the Electric Bike category rapidly
revenue growth through year end 2021 and into growing in popularity. Through 2021, e-bike sales
2022, despite substantial production disruptions grew 39% YOY to $770 million, according to NPD6
that have often resulted in lost or delayed sales. potentially pointing to a large number of privately
Notably, Malibu Boats (Nasdaq:MBUU) recorded a owned brands reaching scale and maturity.
35% increase in net sales in its fiscal Q2 2022,
amid longer lead times for manufacturing, Healthy performance across a diverse range of
according to its earnings call.2 However, supply segments in the Outdoor Recreation & Enthusiasts
chain limitations resulted in production constraints sector has driven optimism for continued
with Malibu estimating it could have built 20% expansion. Customers have shown that they are
more boats in each of its brands. While players in willing to pay premiums for leading brands. Moving
the Boating & Watercraft sector have combated forward, consolidation activity in the sector is
supply and demand imbalances for nearly two expected sustain a rapid pace, especially as an
years, new powerboat sales exceeded 300,000 increasing number of private equity firms develop
units in 2021 for only the second time in 15 years, investment theses in the space.
ac
Ken Wasik
Head of Consumer Investment Banking
are seeing rapid changes in the M&A markets for Outdoor Recreation brands and retailers due to a wholesale shift
toward outdoor lifestyles and excursions. The focus in M&A is moving toward essentials of enthusiast pursuits and
away from big ticket discretionary items. This is noted by the acquisitions of Osprey Packs for 13.5x EBITDA and Dorel
Sports biking division for 11.3x; while Yeti, Thule, and Clarus are all trading publicly at over 13x EBITDA. In contrast, Malibu
Boats is trading at 5.8x and MasterCraft at 5.4x. This comes against a backdrop where many brands are struggling with
inflationary pressure on inputs and supply chain problems. One thing is becoming apparent, higher gross margin brands
will become even more valuable to buyers in this environment. Our recreation deals in the market during the first quarter
have been well received and is a strong indication that the M&A markets remain very strong for outdoor goods.
5
Outdoor Recreation & Enthusiasts | April 2022
M&A ACTIVITY AND BUYER BREAKDOWN
Financial Buyers Increase Acquisition Appetite, Strategic
Consolidation Continues
Strategic Financial
Financial buyer activity 250
Number of Transactions
reached record levels in 210
2021 as private equity firms 200 177
170 64
continued to target the
150 37
sector. In addition, 50
112
consumers increasingly 91 89
pursued outdoor activities, 100 39
27 35 140 146
evidenced by the 25.3% 120
50
YOY increase in national 64 54 73
park visits in 2021, 0
according to the National
2016 2017 2018 2019 2020 2021
Park Service.7
Source: Capital IQ, FactSet, PitchBook, and Capstone Research
Private Equity Platform Investments Reach Highest Level Since 2017
Private Public PE Platform PE Add-on
Private equity platform 100%
10.7%
Percent of Transactions
investments accounted for 13.2% 18.0% 18.8% 14.3%
23.2% 10.2%
16% of 2021 deal volume, 80% 16.5% 16.2%
21.3% 10.6%
marking the highest level in 11.6% 20.3%
60% 14.1%
four years. The increase in 26.4% 25.0% 24.8%
19.1%
platform deals indicates the
40%
growing presence of private
56.5% 58.8%
equity in the sector, with 20% 44.0% 41.6% 40.2% 44.8%
many expected to facilitate
buy-and-build strategies. 0%
2016 2017 2018 2019 2020 2021
Source: Capital IQ, FactSet, PitchBook, and Capstone Research
Boating & Watercraft and Outdoor Power Sports & Equipment Experience
Largest Increase in M&A Volume
2021 2020
Boating & Watercraft and 80
Number of Transactions
Outdoor Power Sports &
Equipment segments 60 48 48
recorded the most
significant YOY increases in 40 30 31 29
M&A volume in 2021. 23 26
Sporting Goods volume in 18
20 9
2021 mirrored 2020, with 7
buyers demonstrating an
appetite for leading bike 0
and golf brands. Sporting Tactical & Camping & Boating & Outdoor Power
Goods Hunting Hiking, Fishing Watercraft Sports &
Equipment
Source: Capital IQ, FactSet, PitchBook, and Capstone Research
6
Outdoor Recreation & Enthusiasts | April 2022
M&A MARKET CONTINUES HEALTHY PACE IN EARLY 2022
The robust dealmaking environment in the Outdoor Recreation & Enthusiasts M&A Volume
Outdoor Recreation & Enthusiasts sector has
continued through early 2022, with 34 transactions 250
announced or completed in year-to-date (YTD) 210
Number of Transactions
March 2022 slightly below the record setting pace 200 177
170
experienced in 2021. Healthy valuations, aggressive
competition in deal processes, and significant 150
levels of private equity dry powder have created a 112
favorable backdrop for privately owned businesses 92 89
100
pursuing a liquidity event. Supply chain disruptions
have challenged business owners, with many 50 39 34
unable to fulfill sales orders due to constrained
production. Effective inventory management has
0
proven to be a key focus for sector players, which
2016 2017 2018 2019 2020 2021 YTD YTD
is often looked upon favorably by potential buyers
2021 2022
in an M&A process. In addition, the current
inflationary environment is expected to persist in
the near term, placing heightened importance on
proper pricing adjustments to maintain margins. 2022 Buyer Breakdown
Through YTD March 2022, private strategic buyers 5.9%
have comprised the majority of M&A activity,
accounting for 61.8% of total deals. In addition,
17.6%
large players in the Consumer space are
STRATEGIC
increasingly pivoting their product portfolios to Public
gain more exposure to the Outdoor segment. Private 14.7%
Notably, Helen of Troy (Nasdaq:HELE), which has
FINANCIAL
most of its holdings in the Housewares and Beauty Platform 61.8%
segments, has committed to building out a robust Add-on
outdoor products portfolio shown by its recent
acquisition of Osprey Packs (see page nine). As
the relevant buyer universe in M&A markets
expands, competition in deal processes will
Year-to-date (YTD) ended March 8
intensify, which bodes well for transaction Source: Capital IQ, FactSet, PitchBook, and Capstone Research
valuations of privately held companies.
The Golf segment has drawn strong interest from both strategic and financial buyers. Robust valuations have
been awarded to category leaders, evidenced by Vista (NYSE:VSTO) acquisition of Foresight Sports for
$499 million in enterprise value and 5.0x revenue (10.0x EBITDA) far exceeding the Sporting Goods
median revenue multiple tracked by Capstone Partners (see next page). Private equity buyers, which have
comprised 32.4% of total 2022 deals YTD, have also targeted the Golf segment. Notably, Solace Capital Partners
acquired Sun Mountain Sports (March 2022, undisclosed), a leading founder owned golf equipment and
apparel company.
Private equity firms are expected to remain active in the sector, especially with many finally regaining capacity to
evaluate more acquisition opportunities following the frenetic pace of deal activity to close 2021. Through early
2022, middle market private equity firms have demonstrated a commitment to building platforms in the space.
Notably, Clearview Capital, which targets companies between $4-$20 million in EBITDA, acquired Worldwide
Camping Holdings from L2 Capital in February 2022 (undisclosed). With elevated private equity activity and
healthy levels of strategic consolidation, the current market has persisted for high-quality privately owned
businesses in the sector.
7Outdoor Recreation & Enthusiasts | April 2022
BUSINESS VALUATIONS & DRIVERS
M&A valuations for privately owned businesses in the middle market are often not disclosed, making pricing
transparency difficult. However, Capstone has deep knowledge of the sector, relevant buyers, and the key
drivers of premium valuations for privately owned companies in the Outdoor Recreation & Enthusiasts sector.
To learn more about the value of your company, contact Ken Wasik, Sophea Chau, or Pete Bailey.
KEY VALUATION DRIVERS
Brand Strength
Trusted and recognized brands often posses strong pricing power, allowing them to more efficiently pass
cost increases onto customers. Brand strength is a key determinant of valuations.
Customer Retention & Acquisition
Loyalty of a customer base allows for a high degree of repeat purchases. Sector players with
identified customer retention and acquisition tactics have proven to capture strong growth.
Recurring Revenue
Subscription models and DTC channels often drive recurring revenue, which allows for more accurate
forecasting of future sales for buyers in an M&A process.
Acquisition fit
Strategic buyers will often pay premiums for companies that provide synergies to their operations and
complement or enhance existing product offerings.
Consistency of Financial Performance
Many outdoor products companies experienced a significant in revenues, making it
difficult for buyers to value the company on a normalized basis. A track record of consistent financial
performance helps to justify a strong purchase multiple.
Competition in M&A Process
Ultimately, the market will dictate the purchase multiple, and it is imperative to have the right set of
buyers at the table to drive competition and push valuations north.
M&A Valuations by Subsector (2017 Present)
Median EBITDA Multiple Median Revenue Multiple
15x
Valuation Multiple
10.6x
9.9x 9.9x
10x
8.0x 7.9x
5x
1.9x 1.4x
1.0x 0.7x 1.1x
0x
Sporting Goods Camping & Hiking, Tactical & Hunting Outdoor Power Boating & Watercraft
Fishing Sports
Source: Capital IQ, FactSet, PitchBook, and Capstone Research
8Outdoor Recreation & Enthusiasts | April 2022
NOTABLE TRANSACTIONS AND M&A INSIGHTS
Several recent transactions have achieved elevated valuations, pointing to the premium buyers are willing to
pay for leading outdoor products providers. Outlined on the next two pages are notable transactions in the
sector, inclusive of commentary on the transaction rationale and valuation from Capstone Partners senior
bankers and sector experts.
Transaction Overview M&A Insight
Sophea Chau
Managing Director
Helen of Troy has acquired leading technical pack is a great example of why brand
and everyday backpack provider Osprey Packs for strength matters a company with tremendous
an enterprise value of $414.7 million, equivalent to brand equity is able to command premium
a pre-synergy EBITDA multiple of ~13.5x valuations. Osprey is a fast growing market
(November 2021). The acquisition is expected to leader and will significantly add to Helen of
be accretive to Helen of sales growth rate, Housewares portfolio, which includes Hydro Flask
gross profit margin, and adjusted EBITDA margin, and OXO. Additionally, international
according to a press release.8 In addition, the presence was key in driving up valuation.
purchase complements Helen of existing Strategics are willing to pay up for companies
brand, Hydro Flask, bolstering its product offerings that can enhance both their product and channel
in the Outdoor Adventure category. Osprey Packs mix, which is what happened here with Helen of
also generates approximately half of its sales Troy and Osprey.
outside the U.S., strengthening Helen of
international presence and brand portfolio.
Pete Bailey
Director
Netherlands-based Pon Holdings has acquired acquisition of Dorel Sports and its iconic
leading bike provider Dorel Sports for an bicycle brands builds on its prior acquisitions of
enterprise value of $810 million, equivalent to 0.7x Santa Cruz (2015) and Bikes (2021) in the
revenue and approximately 11.3x EBITDA (October North American market. Additionally, Dorel
2021). The acquisition aligns with strategy to ecommerce experience should benefit
create a portfolio of premium and electric bike European market and online revenue. Pon
companies and significantly bolsters its market has become the largest bicycle company
presence in the U.S. Dorel Sports will add leading with a focus on performance brands for use in
brands including Cannondale and Schwinn to urban, leisure, and sport, and 70% of sales from
product suite, creating a ~$2.7 billion bike electric bicycles. M&A activity in the Bicycle
company, according to a press release.9 The sector continues to be robust, as KKR
transaction highlights the elevated strategic buyer subsequently announced the acquisition of
appetite for complementary target companies Accell Group, the Dutch owner of Raleigh and
that can expand geographic footprint and scale. Sparta bicycle brands, in January for $1.8 billion.
9Outdoor Recreation & Enthusiasts | April 2022
NOTABLE TRANSACTIONS AND M&A INSIGHTS (CONTINUED)
Ken Wasik
Head of Consumer Investment Banking
Dometic Group (OM:DOM) has acquired Igloo is an important acquisition not only as a
Products for an enterprise value of $900 million, valuation datapoint but also as an indication of a
equivalent to 2.2x revenue and ~22.2x EBITDA strong shift in consumer behavior. The 22x
(September 2021). Igloo is a global provider of EBITDA multiple rivals some of the most
cooling boxes and drinkware products in the important deals we have seen historically in the
Outdoor industry with over $400 million in annual sector. The reason such a valuation was achieved
revenues, according to a press release.10 The is Igloo represents a brand that will
acquisition significantly bolsters disproportionately benefit from the consumer
product offerings and distribution network in the shift in lifestyles to easy outdoor adventures.
North American Outdoor market. Dometic expects Consumers are filling their increased free time
deal synergies to generate annual improvements from the shift to at-home work by undertaking
of $50 million in EBITDA within five years. short outdoor excursions with a fury.
Consumer-focused private equity firm L Catterton Vista Outdoor (NYSE:VSTO) has acquired Stone
has acquired leading manufacturer of lightweight Glacier, a premier brand specializing in
mobile habitats for outdoor pursuits, Taxa performance hunting gear for backcountry use for
Outdoors (March 2022). Terms of the transaction an undisclosed sum (December 2021). Montana-
were not disclosed. RX3 also invested alongside L based Stone Glacier manufactures lightweight and
Catterton. Taxa provides high performance and durable gear used by backcountry hunters,
durable multifunctional camping habitats using outfitters, and guides. The acquisition allows Vista
premium, eco-friendly materials. L Catterton will to penetrate the Packs, Camping Equipment, and
help expand distribution and product Technical Apparel categories. Stone Glacier is the
offerings, leveraging its deep consumer expertise latest deal in an active M&A streak for Vista,
and track record of investing in outdoor brands. marking its seventh acquisition in less than 18
months, according to its earnings call.11
Subsegment Tracker
2021 Deal Volume vs 2020 Deal Volume
BOATING & WATERCRAFT TACTICAL & HUNTING OUTDOOR POWER SPORTS
+188% -3.2% +157%
26 deals vs. 9 deals 30 deals vs. 31 deals 18 deals vs. 7 deals
CAMPING & HIKING, FISHING SPORTING GOODS GAMING & ENTERTAINMENT
+26.1% 0.0% -1.9%
29 deals vs. 23 deals 48 deals vs. 48 deals 51 deals vs. 52 deals
10Outdoor Recreation & Enthusiasts | April 2022
SELECT TRANSACTIONS
Enterprise EV / LTM
Date Target Acquirer Target Business Description Value (mm) Revenue EBITDA
Taxa Manufactures and markets adventure campers and
03/08/22 L Catterton; RX3 - - -
Outdoors travel trailers.
Sun Mountain Solace Capital
03/07/22 Provides bags, carts outwear, and accessories for golf. - - -
Sports Partners
02/14/22 SIK Golf LA Golf Partners Manufactures premium golf putters. - - -
Cascadia Vehicle Provides rooftop vehicle tents, offroad trailers, and car
01/24/22 Gathr Outdoors camping equipment. - - -
Tents
Accell Group KKR (NYSE:KKR); Designs, develops, produces, and markets bicycles,
01/24/22* $2,007.4 1.3x 13.6x
(ENXTAM:ACCEL) Teslin Capital parts, and accessories.
Western Power Arrowhead
01/06/22 Provides power sports parts and accessories. - - -
Sports Engineered
12/28/21 Stone Glacier Vista (NYSE:VSTO) Manufactures outdoor and mountaineering equipment. - - -
U-Neek RV
12/16/21 RV Country Retails new and used recreational vehicles. - - -
Center
L2, Salem Designs and manufactures paddle sport and
12/08/21 YakAttack marine accessories. - - -
Investment, Oxer
Helen of Troy
11/29/21 Osprey Packs Offers backpacking and hiking products. $414.7 - ~13.5x
(Nasdaq:HELE)
Planet Resource
11/26/21 MAX ATV Provides all-terrain vehicles. - - -
(PINX:PRRY)
MacNeill Pride Manufacture car top carrier bags, car back
11/08/21 Rightline Gear - - -
Group carriers, and truck and SUV tents.
Provides performance sports footwear, apparel,
11/05/21 Running Specialty Fleet Feet - - -
and accessories.
Develops and distributes cycling products including bar
10/25/21 Lizard Skins Marucci Sports - - -
tape and grips.
Manufactures and sells mountain, urban, recreational,
10/11/21 Dorel Sports Pon $810.0 0.7x ~11.3x
and road bicycles.
MarineMax
10/05/21 Intrepid Powerboats Offers custom powerboats for boating enthusiasts. - - -
(NYSE:HZO)
Dometic Designs, manufactures, and markets coolers and
09/17/21 Igloo Products $900.0 2.2x ~22.2x
(OM:DOM) other outdoor products.
Foresight Vista Manufactures golf performance analysis and
09/10/21 $499.0 5.0x 10.0x
Sports (NYSE:VSTO) entertainment technologies.
Stanley Black & Manufactures and distributes outdoor power
08/17/21 MTD Holdings $1,600.0 0.8x 8.0x
Decker (NYSE:SWK) equipment including garden tractors and mowers.
Full-Swing Bruin Capital Provides golf simulators for golf professionals,
07/26/21 - - -
Golf Investors enthusiasts, and businesses.
Designs, manufactures, and sells camping gear
07/16/21 Argon Technologies MacNeill Pride Group and outdoor rugged products. - - -
Provides branded camping hammocks and
05/17/21 Wise Owl Outfitters Thrasio related accessories sold on Amazon and DTC. CF CF CF
* = International transaction
Blue shade indicates Capstone-advised transaction; CF = confidential
Source: Capital IQ, PitchBook, FactSet, and Capstone Research
11Outdoor Recreation & Enthusiasts | April 2022
PUBLIC COMPANY DATA
BOATING & WATERCRAFT
Price % 52 Wk Market Enterprise LTM EV / LTM
Company 04/21/22 High Cap Value Revenue EBITDA Margin Revenue EBITDA
Bénéteau S.A. $14.42 81.8% $1,175.8 $1,061.0 $1,233.5 $39.1 3.2% 0.9x 27.2x
Brunswick Corporation $77.90 66.2% $5,968.2 $7,530.6 $5,846.2 $1,074.5 18.4% 1.3x 7.0x
Malibu Boats, Inc. $52.04 58.3% $1,087.7 $1,187.8 $1,067.3 $204.0 19.1% 1.1x 5.8x
Marine Products Corporation $12.46 66.5% $425.5 $411.4 $298.0 $38.3 12.8% 1.4x 10.8x
MasterCraft Boat Holdings, Inc. $24.62 73.2% $455.4 $515.7 $606.9 $96.1 15.8% 0.8x 5.4x
Mean 13.9% 1.1x 11.2x
EV = enterprise value; LTM = last twelve months Median 15.8% 1.1x 7.0x
$ in millions, except per share data
NM = Not Meaningful Harmonic Mean 8.9% 1.1x 7.9x
CAMPING & HIKING, FISHING
Price % 52 Wk Market Enterprise LTM EV / LTM
Company 04/21/22 High Cap Value Revenue EBITDA Margin Revenue EBITDA
Camping World Holdings, Inc. $25.99 52.8% $1,095.9 $4,247.0 $6,913.8 $1,052.1 15.2% 0.6x 4.0x
Clarus Corporation $21.56 66.6% $802.0 $942.0 $375.8 $47.3 12.6% 2.5x 19.9x
Dorel Industries Inc. $7.23 31.8% $236.7 $739.6 $1,758.7 $43.3 2.5% 0.4x 17.1x
Johnson Outdoors Inc. $79.80 52.6% $803.9 $684.9 $739.5 $111.4 15.1% 0.9x 6.2x
Thule Group AB (publ) $40.43 68.8% $4,227.7 $4,385.0 $1,148.6 $273.8 23.8% 3.8x 16.0x
YETI Holdings, Inc. $53.00 48.7% $4,613.7 $4,488.0 $1,411.0 $322.8 22.9% 3.2x 13.9x
Mean 15.3% 1.9x 12.9x
Median 15.1% 1.7x 15.0x
Harmonic Mean 8.5% 1.0x 9.2x
GAMING & ENTERTAINMENT
Price % 52 Wk Market Enterprise LTM EV / LTM
Company 04/21/22 High Cap Value Revenue EBITDA Margin Revenue EBITDA
Activision Blizzard, Inc. $78.90 79.3% $61,614.8 $54,908.8 $8,803.0 $3,548.0 40.3% NM 15.5x
DraftKings Inc. $14.36 22.2% $5,868.5 $5,034.2 $1,296.0 NM NA 3.9x NM
Electronic Arts Inc. $123.74 83.1% $34,798.4 $34,025.4 $6,512.0 $1,472.8 22.6% NM 23.1x
Enthusiast Gaming Holdings Inc. $2.01 23.1% $268.2 $260.2 $132.3 NM NA 2.0x NM
Flutter Entertainment plc $109.17 53.1% $19,198.8 $23,084.1 $8,173.4 $1,355.4 16.6% 2.8x 17.0x
Penn National Gaming, Inc. $37.04 38.5% $6,150.5 $15,916.8 $5,905.0 $2,029.7 34.4% 2.7x 7.8x
PointsBet Holdings Limited $2.30 21.2% $610.4 $199.0 $188.1 NM NA 1.1x NM
Super League Gaming, Inc. $1.58 25.0% $58.2 $43.6 $11.7 NM NA 3.7x NM
Mean 28.5% 2.7x 15.9x
Median 28.5% 2.8x 16.3x
Source: Capital IQ as of April 21, 2022 Harmonic Mean 25.2% 2.2x 13.6x
12Outdoor Recreation & Enthusiasts | April 2022
PUBLIC COMPANY DATA
SPORTING GOODS
Price % 52 Wk Market Enterprise LTM EV / LTM
Company 04/21/22 High Cap Value Revenue EBITDA Margin Revenue EBITDA
Academy Sports and Outdoors,
$40.99 80.2% $3,572.1 $4,933.4 $6,773.1 $1,218.0 18.0% 0.7x 4.1x
Inc.
Acushnet Holdings Corp. $42.59 73.6% $3,081.8 $3,205.8 $2,147.9 $308.1 14.3% 1.5x 10.4x
Big 5 Sporting Goods Corporation $16.05 33.7% $349.9 $543.5 $1,161.8 $252.2 21.7% 0.5x 2.2x
Callaway Golf Company $23.02 61.0% $4,251.4 $7,014.8 $3,133.4 $540.5 17.2% 2.2x 13.0x
DICK'S Sporting Goods, Inc. $103.62 70.3% $8,274.0 $10,141.0 $12,293.4 $3,061.5 24.9% 0.8x 3.3x
Escalade, Incorporated $13.40 52.1% $180.8 $276.3 $326.8 $44.0 13.4% 0.8x 6.3x
Frasers Group plc $9.14 84.7% $4,317.9 $5,271.7 $5,605.0 $882.9 15.8% 0.9x 6.0x
Hibbett, Inc. $46.87 46.1% $608.0 $874.1 $1,691.2 $339.9 20.1% 0.5x 2.6x
Mean 18.2% 1.0x 6.0x
Median 17.6% 0.8x 5.0x
Harmonic Mean 17.5% 0.8x 4.2x
OUTDOOR POWER SPORTS & EQUIPMENT
Price % 52 Wk Market Enterprise LTM EV / LTM
Company 04/21/22 High Cap Value Revenue EBITDA Margin Revenue EBITDA
Alamo Group Inc. $137.85 83.1% $1,645.5 $1,889.8 $1,334.2 $168.4 12.6% 1.4x 11.2x
Bombardier Inc. $1.13 62.0% $2,706.1 $8,761.5 $6,085.0 $364.0 6.0% 1.4x 24.1x
Bosch Limited $190.75 75.5% $5,626.0 $5,216.5 $1,551.1 $223.4 14.4% 3.4x 23.3x
Brunswick Corporation $77.90 66.2% $5,968.2 $7,530.6 $5,846.2 $1,074.5 18.4% 1.3x 7.0x
Deere & Company $424.36 95.0% $130,187.0 $174,174.0 $44,413.0 $8,466.0 19.1% 3.9x 20.6x
Honda Motor Co., Ltd. $26.31 90.7% $45,006.3 $84,503.6 $124,205.9 $20,803.3 16.7% 0.7x 4.1x
Husqvarna AB (publ) $10.18 66.1% $5,831.7 $6,930.8 $5,216.3 $803.2 15.4% 1.3x 8.6x
Kubota Corporation $17.67 83.0% $21,205.6 $28,520.9 $19,079.4 $2,653.1 13.9% 1.5x 10.8x
Lowe's Companies, Inc. $205.03 77.9% $135,549.6 $163,484.6 $96,250.0 $15,104.0 15.7% 1.7x 10.8x
Polaris Inc. $106.80 72.3% $6,352.1 $7,821.2 $8,252.0 $997.0 12.1% 0.9x 7.8x
Stanley Black & Decker, Inc. $144.25 64.1% $22,020.4 $29,543.5 $15,617.2 $2,844.0 18.2% 1.9x 10.4x
Techtronic Industries Company
$14.38 62.7% $26,378.7 $28,169.2 $13,203.2 $1,488.0 11.3% 2.1x 18.9x
Limited
Textron Inc. $69.11 87.0% $14,950.5 $17,176.5 $12,382.0 $1,337.0 10.8% 1.4x 12.8x
The Toro Company $84.98 71.9% $8,883.6 $9,863.6 $4,019.2 $605.7 15.1% 2.5x 16.3x
Tractor Supply Company $219.18 90.7% $24,580.2 $28,091.8 $12,962.9 $2,157.1 16.6% 2.2x 13.0x
Mean 14.4% 1.8x 13.3x
Median 15.1% 1.5x 11.2x
Source: Capital IQ as of April 21, 2022 Harmonic Mean 13.3% 1.5x 10.7x
13Outdoor Recreation & Enthusiasts | April 2022
PUBLIC COMPANY DATA
TACTICAL & HUNTING
Price % 52 Wk Market Enterprise LTM EV / LTM
Company 04/21/22 High Cap Value Revenue EBITDA Margin Revenue EBITDA
American Outdoor Brands, Inc. $13.31 36.3% $177.7 $180.3 $266.1 $36.5 13.7% 0.7x 4.9x
AMMO, Inc. $4.24 40.9% $489.8 $470.9 $182.5 $49.1 26.9% 2.6x 9.6x
Axon Enterprise, Inc. $120.65 57.7% $8,565.6 $8,149.5 $863.4 NM NA NM NM
CZG - Ceská zbrojovka Group SE $25.93 91.5% $874.9 $1,044.1 $494.9 $83.5 16.9% 2.1x 12.5x
Smith & Wesson Brands, Inc. $14.55 36.7% $662.2 $598.1 $1,005.8 $360.3 35.8% 0.6x 1.7x
Sturm, Ruger & Company, Inc. $72.32 78.2% $1,272.6 $1,053.3 $730.7 $229.2 31.4% 1.4x 4.6x
V.F. Corporation $56.49 62.2% $21,969.1 $26,981.5 $11,599.8 $2,378.4 20.5% 2.3x 11.3x
Vista Outdoor Inc. $36.09 68.5% $2,030.4 $2,801.0 $2,832.6 $668.1 23.6% 1.0x 4.2x
Mean 24.1% 1.5x 7.0x
Median 23.6% 1.4x 4.9x
Harmonic Mean 21.9% 1.1x 4.6x
Average Public Company Trading Multiples by Segment
(Last Twelve Months)
EV/Revenue EV/EBITDA
20.0x
15.9x
15.0x 13.3x
Valuation Multiple
12.9x
11.2x
10.0x
7.0x
6.0x
5.0x
2.7x
1.9x 1.8x 1.5x
1.1x 1.0x
0.0x
Boating & Camping & Hiking, Gaming & Sporting Goods Outdoor Power Tactical & Hunting
Watercraft Fishing Entertainment Sports &
Equipment
Source: Capital IQ as of April 21, 2022
14Outdoor Recreation & Enthusiasts | April 2022
OUTDOOR RECREATION & ENTHUSIASTS REPORT CONTRIBUTORS
Kenneth Wasik
Managing Director, Head of Consumer Investment Banking
kwasik@capstonepartners.com | 917-434-6124
Ken joined Capstone to lead the Consumer Investment Banking practice. He brings
nearly 25 years of investment banking experience including domestic and international
mergers & acquisitions, initial and secondary offerings of public companies, debt raises
and private placements for his clients. He has helped raise over $10 billion in capital for
clients during his career. Ken regularly presents at consumer industry conferences and
has testified twice as an expert witness on consumer brands. He joins Capstone Partners
from Stephens Investment Bank, where he started and led the Consumer Products
Group. Ken is a Series 79 Registered Investment Banking Representative and holds an
MBA in Finance from Columbia University and a BS in Accounting from St.
University.
Sophea Chau
Managing Director
schau@capstonepartners.com | 617-619-3307
Sophea has 15 years of experience in mergers & acquisitions, private placements and
financial advisory services. Her responsibilities include asset positioning and strategy
articulation, providing financial and valuation analysis, and performing due diligence. Prior
to joining Capstone Partners, Sophea was an analyst at FTN Midwest Securities, a full-
service investment banking firm based in Cleveland. While working in their New York
office, she focused on M&A advisory for middle-market companies in a variety of
industries, including consumer products, healthcare, and marketing & advertising. The
M&A Advisor named Sophea to its prestigious (previously, 40-
UNDER-40 deal makers list in 2018. Sophea is on the Board of the Columbia Alumni
Association of Boston and holds a BA in Economics from Columbia University.
Peter Bailey
Director
pbailey@capstonepartners.com | 310-740-3286
Pete has 16 years of experience executing M&A and capital markets transactions in a
variety of industries including consumer. His investment banking coverage includes the
tactical & outdoor products and sports technology sectors. Prior to joining Capstone
Partners, Pete worked as an investment banker at Stephens Inc., Wells Fargo & Company,
and Citigroup, Inc. He also served over five years as a U.S. Army intelligence officer,
which included two tours to Bosnia-Herzegovina in support of peacekeeping and
counter-terrorism operations, and deployment to Kuwait and Iraq in support of
Operation Iraqi Freedom. He holds a BS in General Management from the U.S Military
Academy and an MBA from Harvard Business School.
Connor McLeod
Research Manager
cmcleod@capstonepartners.com | 617-619-3319
Connor currently serves as Research Manager at Capstone Partners. Connor provides
M&A insights, capital markets analysis, and macroeconomic trends for C-suite middle
market executives. He specializes in the coverage of the Consumer and Healthcare
industries. Connor holds a BA in Economics from Bates College and is Series 7 Registered
Securities Representative.
15Outdoor Recreation & Enthusiasts | April 2022
FIRM TRACK RECORD
Capstone has represented numerous companies in the Consumer industry, with the Outdoor Recreation &
Enthusiasts sector serving as a key area of focus. A sampling of closed and ongoing transactions
are included below. For more information about Consumer track record, visit here.
CONFIDENTIAL CONFIDENTIAL
CORPORATE SALE CORPORATE SALE HAS BEEN ACQUIRED BY HAS BEEN ACQUIRED BY
MANUFACTURER OF LEADING
A U.S. SUBSIDIARY OF
BIKES AND PROVIDER OF
ACCESSORIES ELECTRIC BIKES
HAS BEEN ACQUIRED BY HAS MERGED WITH HAS BEEN ACQUIRED BY HAS BEEN ACQUIRED BY
a portfolio company
of
HAS BEEN ACQUIRED BY HAS BEEN ACQUIRED BY HAS BEEN ACQUIRED BY HAS BEEN ACQUIRED BY
a portfolio company of
a portfolio company of
16Outdoor Recreation & Enthusiasts | April 2022
ENDNOTES
1.
https://www.verifiedmarketresearch.com/product/us-outdoor-recreation-products-market/, accessed March 8,
2022.
2.
https://investors.malibuboats.com/events-and-presentations/default.aspx, accessed March 7, 2022.
3.
https://www.nmma.org/statistics/article/23889#:~:text=NMMA%20shared%20the%20latest%20industry,highs%20i
n%202020%20and%207, accessed March 8, 2022.
4.
https://ir.callawaygolf.com/static-files/6be96c57-3f79-471b-8a5e-8dbb5bffde89, accessed March 9,
2022.
5. https://www.ngf.org/participation-and-
engagement-rise-again/, accessed March 9, 2022.
6. https://www.npd.com/news/blog/2022/four-
ways-the-cycling-industry-can-set-its-sights-on-success/, accessed March 9, 2022.
7. https://www.nps.gov/subjects/socialscience/annual-visitation-
highlights.htm., accessed April 20, 2022.
8.
https://www.businesswire.com/news/home/20211129005699/en/Helen-of-Troy-Announces-Agreement-to-
Acquire-Osprey%C2%AE-Packs-Inc., accessed March 9, 2022.
9. https://www.betamtb.com/news-issues/pon-
holdings-to-acquire-dorel-sports-in-810-million-deal/, accessed March 9, 2022.
10. Dometic
https://www.dometic.com/en-se/outdoor/se/news/global/dometic-acquires-igloo-with-more-than-usd-400-
million-in-annual-revenues, accessed March 7, 2022.
11. https://s24.q4cdn.com/982007713/files/doc_financials/2022/q3/VSTO-
Webslides-Q3-FY22.pdf, accessed March 6, 2022., accessed March 9, 2022.
Common Goals. Uncommon Results.
Disclosure
This report is a periodic compilation of certain economic and corporate information, as well as completed and announced merger and
acquisition activity. Information contained in this report should not be construed as a recommendation to sell or buy any security. Any
reference to or omission of any reference to any company in this report should not be construed as a recommendation to buy, sell or
take any other action with respect to any security of any such company. We are not soliciting any action with respect to any security
or company based on this report. The report is published solely for the general information of clients and friends of Capstone
Partners. It does not take into account the particular investment objectives, financial situation or needs of individual recipients.
Certain transactions, including those involving early-stage companies, give rise to substantial risk and are not suitable for all investors.
This report is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not
be relied upon as such. Prediction of future events is inherently subject to both known and unknown risks and other factors that may
cause actual results to vary materially. We are under no obligation to update the information contained in this report. Opinions
expressed are our present opinions only and are subject to change without notice. Additional information is available upon request.
The companies mentioned in this report may be clients of Capstone Partners. The decisions to include any company in this report is
unrelated in all respects to any service that Capstone Partners may provide to such company. This report may not be copied or
reproduced in any form or redistributed without the prior written consent of Capstone Partners. The information contained herein should
not be construed as legal advice.
17Market Presence
With a long-established U.S. footprint, together with an international partner
platform, we provide clients with broad expertise and access to key market
relationships on a global basis. Our presence is backed by ~200 professionals in the
U.S. with 450+ professionals across 43 countries.
218 $12.5B 30% 6th
M&A transactions aggregate of our deals globally ranked for
completed in 2020 transaction value are cross- deals under $500m
border
$65.1M 51 65%
average deals involving foreign completed with a
transaction private equity firms European partner
value
United States International
170+ professionals 450+ professionals
12 offices 60+ offices in 43 countries
Boston · Chicago · Dallas · Asia: China · India · Japan · Thailand
Denver Detroit · Los Angeles · Africa: Congo · Egypt · Ghana · Ivory Coast · Mauritius · Morocco · Nigeria · Senegal · South Africa
New York Orange County · Americas: Toronto · Vancouver · Argentina · Brazil · Chile · Colombia · Mexico · Panama & Central
Philadelphia Richmond · San America · Peru
Diego · Tampa Europe: Belgium · Bosnia & Herzegovina · Croatia · Czech Republic · Finland · France · Germany ·
Hungary · Ireland
Italy · Netherlands · Poland · Portugal · Russia · Serbia · Slovakia · Slovenia · Spain · Sweden ·
United Kingdom
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