HEIGHTENED CONSUMER DEMAND DRIVES ELEVATED MERGER AND ACQUISITION ACTIVITY - OUTDOOR RECREATION & ENTHUSIASTS INDUSTRY UPDATE | APRIL 2021
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HEIGHTENED CONSUMER DEMAND DRIVES
ELEVATED MERGER AND ACQUISITION ACTIVITY
OUTDOOR RECREATION & ENTHUSIASTS INDUSTRY UPDATE | APRIL 2021
3
TABLE OF CONTENTS
Key Industry Takeaways 4
Industry Outlook 5
M&A Overview 6
M&A Subsegment Summary 7
Notable Transactions 8
Public Company Performance 9
Select Transactions 10
Public Company Data 12
Report Contributors 15
Firm Track Record 16
Contact Our Outdoor Recreation &
Enthusiasts 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 Industry
Heightened Consumer Demand Drives Elevated M&A Activity
KEY INDUSTRY TAKEAWAYS
Capstone Partners’ Consumer Investment Banking Group is pleased to share its Outdoor Recreation &
Enthusiasts report. Transaction activity in the industry has demonstrated remarkable resilience, increasing
year-over-year (YOY), while many other industries recorded substantial declines. Capstone anticipates
robust M&A volume throughout 2021 as outdoor recreation and enthusiast brands remain high on strategics’
and sponsors’ target lists.
1. Demand for outdoor recreation and enthusiast products has elevated amid the pandemic as
consumers have gravitated towards a more active lifestyle.
2. While 2020 was a record year for many companies in the industry, unmet demand still exists and
should drive continued growth.
3. Merger and acquisition (M&A) activity surged in 2020 and has continued at a rapid pace in 2021
as strong industry performance has propelled substantial buyer interest.
4. Top public companies have experienced strong valuation growth, with average EBITDA multiples
expanding compared to the prior year.
5. The Tactical & Hunting and Camping & Hiking subsegments experienced elevated M&A activity in
2020, while Boating & Watercraft recorded lower YOY volumes.
6. Leading industry participants have generated a significant increase in revenue, while combating
production challenges with demand often outpacing supply.
7. Customer engagement and retention have been key focuses as businesses increasingly
emphasize effective direct-to-consumer platforms and target younger demographics.
Capstone Partners has developed a full suite of corporate finance solutions, including M&A advisory, debt
advisory, financial advisory, equity capital financing, and ESOP (Employee Stock Ownership Plan) advisory, to
help privately owned businesses and private equity firms through each stage of the company’s lifecycle,
ranging from growth to an ultimate exit transaction.
To learn more about Capstone’s wide breadth of advisory services and Outdoor Recreation & Enthusiasts
industry expertise, please contact Ken Wasik, Sophea Chau, or Peter Bailey.
4
Outdoor Recreation & Enthusiasts | April 2021
INDUSTRY OUTLOOK
The pandemic has heightened demand in the
Outdoor Recreation & Enthusiasts industry as
consumers have increasingly sought socially Kenneth Wasik, Head of
distant outdoor activities, leading to substantial Consumer Investment Banking
increases in outdoor equipment and sporting
goods sales. Elevated interest in outdoor activities “The Outdoor Recreation and Enthusiasts space will
has been evidenced by the growth of hunting and continue to be one of the most vibrant for M&A
fishing licenses in 2020, rising 12% and 14%, deals in the Consumer Products Industry. It is the
respectively, according to Recreation Boating & beneficiary of wholesale changes in American
changing demographics, consumer interests, and
Fishing Foundation and Vista Outdoor.1,2 In addition,
most importantly, the upcoming generations desire
as consumers have adopted more active lifestyles, for their own brands. Wall Street recognizes this and
sales for rugged outdoor products enabling public valuations have taken off. We are seeing an
enthusiast pursuits including backcountry increase in private companies desiring to sell to
equipment have increased 76% YOY according to capture these high valuations and in anticipation of
NPD.3 While the industry has capitalized on perceived tax increases.”
increased consumer interest amid the pandemic,
reflected by robust Q4 2020 performance of top
public companies, there is still unmet demand that
is likely to fuel industry growth in 2021. propensity for outdoor equipment and sporting
goods, with 25% of Dick’s Sporting Goods
Leading industry participants have experienced (NYSE:DKS) new customers under the age of 30,
healthy performance through 2020 and into 2021 according to its investor presentation.6 As a result,
driven by effective inventory management, industry participants have increasingly leveraged
customer engagement, and direct-to-consumer social media to drive customer loyalty and
(DTC) capabilities. Notably, premier shooting effectively target their audience. Notably,
sports and outdoor products provider Vista followers for the Instagram accounts of Yeti
Outdoor (NYSE:VSTO) recorded a 35% increase in (NYSE:YETI), Columbia, and The North Face have
sales in Q4, with revenue across its e-commerce increased 23%, 27%, and 14% respectively, YOY,
channels rising 50% YOY, according to its earnings according to Yeti’s investor presentation.7
call. Vista and other industry participants
specializing in shooting sports and firearms have Industry participants have also increasingly
benefited from droves of new consumers in recent adopted DTC platforms and omnichannel
months. This has been evidenced by the 60% capabilities as online shopping has proliferated
increase in firearm background checks, which amid the pandemic. Yeti has focused on
amounted to a record of 21 million in 2020, enhancing its omnichannel strategy, with DTC
according to National Shooting Sports Foundation.4 channel net sales accounting for 58% of total net
In addition, first time firearm buyers accounted for sales in Q4, which stood at less than 10% five years
40% of all purchases, with spending spread over an ago, according to its earnings call.8 In addition,
increasingly diverse customer base. As demand buy online and pick up in store (BOPIS) orders
for tactical products has spiked, providers have have experienced rapid consumer adoption,
combated supply shortages which have likely serving as a valuable channel for many industry
constrained additional sales. Sturm, Ruger & Co. participants. Notably, Dick’s Sporting Goods
(NYSE:RGR) encountered production challenges for experienced a 250% increase in BOPIS sales in
most of 2020, with inventories declining by 2020 YOY, highlighting the heightened consumer
290,000 units, although sales performance held appetite for curbside or in store pickup, according
steady, with revenues increasing 39% compared to to its earnings call.9 As DTC becomes a larger
the prior year, according to its earnings call.5 channel focus for brands, consumer-centric
technology adoption is likely to expand to facilitate
Outdoor recreation brands have altered business a more efficient user experience. Moving into Q2
models and marketing tactics to increase 2021, brands are expected to continue to scale to
customer engagement and retention, especially rebuild pipelines to meet consumer demand and
among younger demographics. Millennials and bolster product lines, fueling favorable conditions
Generation Z have demonstrated a strong for a robust M&A market.
propensity
5
Outdoor Recreation & Enthusiasts | April 2021
M&A OVERVIEW
Strong sector performance prior to and during the
pandemic contributed to healthy levels of M&A
Sophea Chau,
activity in 2020, with transaction volume Managing Director
outpacing the prior year by 5.8%. While total
middle market transaction activity fell by over 16%
across all industries YOY, according to Capstone “Because Outdoor Recreation & Enthusiasts
Research, the Outdoor Recreation & Enthusiasts companies have strong fundamentals and significant
sector has showcased remarkable resilience. growth potential, they are commanding attention
Through 2020 and YTD 2021, tactical products and from both strategic and private equity buyers who
are willing to pay premium valuations. These
outdoor recreation providers have garnered the
valuations are at all-time highs driven by both the
strongest buyer interest, accounting for over 35% resilience and growth the industry demonstrated
of transactions. Shooting sports and firearms during the pandemic as well as the sector’s
providers have been notably acquisitive, anticipated sustained long-term growth. Quality
evidenced by the buying spree in September businesses are well poised to capitalize on these
2020 of players including Vista Outdoor, Clarus M&A trends in 2021 and beyond.”
Corporation (Nasdaq:CLAR), and Sturm, Ruger &
Co. during the auction of Remington Outdoor
assets. Vista has continued to expand and
diversify product lines, acquiring Hevi-Shot for an M&A Activity Remains Strong Through 2020
enterprise value of $16 million in February 2021. Transaction volume increased year-over-year as interest in
outdoor recreation and sporting goods has elevated amid the
While private equity buyers accounted for 8% less pandemic with favorable outlooks for near term deal activity.
transactions in 2020 than 2019, sponsors have
demonstrated they are actively looking to deploy 70 2019 2020 2021
capital to the sector in 2021. Notably, Sycamore
Number of Transactions
60 54
Partners-backed Pure Fishing acquired Plano 48 48 48
50 45 43 44
Synergy in March 2021 for an undisclosed sum, 41 39
marking Pure Fishing’s third add-on in two years 40 36 36
under Sycamore’s ownership (see following page). 30
Mounting levels of dry powder, which reached $1.3 20
trillion in 2020 according to PitchBook,10 and
10
improved credit conditions create a favorable
0
backdrop for heightened sponsor activity.
Q1 Q2 Q3 Q4 YTD
Valuations over the past 16 months have remained
steady, with buyers paying premium multiples for M&A Pricing Levels Resilient Through YTD 2021
category leaders with demonstrated performance. Gaming & Entertainment providers have attracted the highest
Notably, the Gaming & Entertainment subsector, M&A multiples in the sector as the rise of esports and
which has accounted for nearly 30% of transaction streaming services have attracted new consumers.
volume through 2020 and YTD 2021, has emerged EV/Revenue EV/EBITDA
14x
as an attractive target for buyers and often
12x
Transaction Multiple
transacting at elevated valuations. Streaming 9.5x 9.4x
10x
services and online and mobile gaming and sports 7.7x
consumption have grown amid the pandemic, and 8x
6x 4.9x
buyers have capitalized on increased demand.
Leading esports and gaming content provider 4x
Super League Gaming (Nasdaq:SLGG) acquired 2x 1.1x 1.1x
Mobcrush in March 2021 for an enterprise value of 0x
$69.8 million (more details page seven). As Tactical Products Sporting Goods & Gaming &
esports and online gaming continue to grow in & Outdoor Active Lifestyle Entertainment
popularity, businesses with developed Recreation
entertainment and gaming platforms are likely to Note: Year-to-date ended March 16
continue to capture premium multiples. Source: Capital IQ, PitchBook, FactSet, and Capstone Research
6
Outdoor Recreation & Enthusiasts | April 2021
M&A SUBSEGMENT SUMMARY
M&A activity in the Outdoor Recreation & Enthusiasts industry has increased year-over-year, with certain
subsectors performing better than others. Capstone expects robust consolidation to continue through 2020,
aided by privately owned businesses capitalizing on the current favorable tax environment, heightened
private equity interest, and a new generation of consumers increasingly pursuing outdoor experiences. Select
subsegments are highlighted below, followed by notable deals on the following page.
21% 33%
OUTDOOR POWER SPORTS BOATING & WATERCRAFT
M&A volume in the Outdoor Powers Sports The Boating & Watercraft subsector experienced
subsector increased over 21% in 2020 compared lower transaction volume in 2020, however through
to the prior year with industry participants 2021 activity is increasing. “We are noticing activity
bolstering product lines and diversification through is ramping up especially in boating dealerships
inorganic growth. Polaris recently announced its where two public companies are buying up sites.
strategic relationship with Zero Motorcycles. “The Separately, large boat manufacturers are targeting
acquisition of Zero gives Polaris the chops to specialty boat manufacturers to fill out their lines,”
compete head-to-head with Harley Davidson commented Wasik.
electric motorcycles but more importantly will use
technology across its ATV and commercial
products,” noted Managing Director Ken Wasik.
120% 27%
TACTICAL & HUNTING CAMPING & HIKING
Transaction volume in the Tactical & Hunting Camping & Hiking experienced an uptick in
subsegment has increased substantially year- transaction activity with 14 deals announced or
over-year, rising about 120% with 22 deals completed in 2020. Recreational vehicles have
announced or completed in 2020. Robust witness increased demand with strategic buyers
consolidation has continued in 2021 with favorable leading consolidation efforts. Hiking gear providers
outlooks for continued M&A activity. “Strategic and have also seen elevated interest as consumers
financial buyers are actively reviewing deals in have adopted more active lifestyles. “Camping &
market in 2021 and have expressed broad interest Hiking remains a hot sector and buyers are actively
in tactical gear, firearms, ammunition, hunting, less- seeking quality brands to add to their portfolios,”
lethal products, and accessories,” noted Director commented Managing Director Sophea Chau.
Peter Bailey.
17% 2%
FISHING SPORTING GOODS
The Fishing subsector experienced a slight decline M&A activity in the Sporting Goods subsector
in transactions in 2020 year-over-year. Through improved modestly compared to the prior year
year-to-date 2021, fishing providers have been in with 48 transactions announced or closed in 2020.
higher demand evidenced by Pure Fishing’s While the delay of sporting events may have
acquisition of Plano, adding the market leader in placed downward pressure on traditional team
tackle boxes and bolstering its expansive sector sporting equipment, sales are forecast to rebound
portfolio. “Plano was a great brand but had throughout 2021 as the vaccine rollout progresses.
experienced troubled operations recently,” noted “The SportsTech and FitnessTech sectors had
Managing Director Ken Wasik. “Pure gets the leader record years of capital investment in 2020 and are
in tackle boxes and one more brand to add to its poised for continued consumer growth in 2021,”
huge portfolio of brands.” commented Bailey.
7
Outdoor Recreation & Enthusiasts | April 2021
NOTABLE TRANSACTIONS
CZG (SEP:CZG) has acquired leading U.S. firearms AMMO (Nasdaq:POWW) has agreed to acquire
manufacturer Colt Defense for an enterprise value GunBroker.com, an online marketplace for legal
of $256.2 million, equivalent to 4.4x estimated firearms, ammunition, and accessories for an
2020 EBITDA. Colt has been a long-term supplier enterprise value of $240 million and equivalent to
to the U.S. army and, through its Canadian less than 6x EBITDA. GunBroker.com achieved an
subsidiary, has served as an exclusive small arms estimated $60 million in 2020 revenue with over
supplier to the Canadian military. Through the $40 million of EBITDA according to a press
acquisition, Czech-based CZG expands its release.13 The transaction expands on AMMO’s
production capacity in the U.S. and Canada and vertical integration strategy, leveraging
bolsters its customer base. The combined entity GunBroker.com’s e-commerce and technological
is expected to generate $500 million of revenue, capabilities.
according to a press release.11
Pure Fishing has acquired premier storage Malibu Boats (Nasdaq:MBUU) has acquired
solutions provider for anglers and hunters, Plano Maverick Boat Group, a leading provider of center
Synergy, for an undisclosed sum. Plano specializes console, dual console, flats and bay boats, for an
in tackle storage, catch management, hunting enterprise value of $150 million and equivalent to
accessories, and archery. The acquisition provides 1.3x revenue. The addition of Maverick enhances
Sycamore Partners-backed Pure Fishing with the Malibu’s product suite of saltwater outboard
addition of complementary brands and fosters offerings and bolsters its manufacturing capacity
further geographic expansion and penetration in and distribution opportunities. The acquisition is
the Outdoor Sports industry. The transaction expected to be immedietly accretive, excluding
highlights private equity’s interest to build out purchase accounting and acquisition costs,
portfolios in the sector, with the acquisition of according to a company press release.14
Plano representing Sycamore’s third add-on in the
past two years through Pure Fishing.
Peter Bailey,
Director
“Sellers in the Tactical, Outdoor, Firearms &
Super League Gaming has acquired Mobcrush, a Ammunition sector are motivated to transact after
live streaming technology platform, for an record years in 2020 and an expectation of growth
enterprise value of $69.8 million. The acquisition in 2021. Buyers have noted they are busy reviewing
provides Super League, a premier esports platform, multiple deals in the sector and frequently
discussing valuation expectations related to target
with a U.S. monthly audience of 85 million. “With
2020 financial performance. Special Acquisition
this acquisition we are building a formidable, highly Companies continue to enter the market targeting
scalable gaming-centric media and advertising companies in the Sports Betting, Gaming,
platform that reaches one of the largest Entertainment, and Technology sectors.”
addressable audiences of gamers in the U.S.,”
commented Ann Hand, Chief Executive Officer of
Super League in a press release.12
8
Outdoor Recreation & Enthusiasts | April 2021
PUBLIC COMPANY PERFORMANCE
High Performing Public LTM 2020 LTM 2021
Companies Have $5,000 $4,348
$4,108
Captured Substantial
Revenue Growth $4,000
Dollars in Millions
Top public companies have $3,000
experienced significant last $2,055
twelve-month (LTM) $2,000 $1,845
revenue increases, with $1,078 $1,092
$953 $914
Smith & Wesson and $1,000 $586 $632 $512 $411
$569 $753
Sturm, Ruger & Company
recording elevated sales $0
along with other tactical Brunswick Johnson Smith & Sturm, Thule Vista YETI
products & outdoor Outdoors Wesson Ruger & Outdoor
recreation providers. Company
Source: Capital IQ and Capstone Research
Tactical Products & 2020 2021
Outdoor Recreation
Providers Have Traded 30x
at Premium Multiples
25x 22.2x 22.3x
Tactical products and 20x
EV/EBITDA
16.5x
outdoor recreation public
15x 12.0x 12.8x
companies have 10.1x 9.4x 8.5x
experienced significant 10x 8.1x
5.3x 6.2x 6.8x 7.0x
EBITDA multiple expansion,
5x 3.0x
with average valuations for
the subsegment increasing 0x
to 11.8x in March, Brunswick Johnson Smith & Sturm, Thule Vista YETI
compared to 8.2x in the Outdoors Wesson Ruger & Outdoor
prior year. Company
Source: Capital IQ and Capstone Research
Tactical Products & Outdoor Recreation Gaming & Entertainment
Gaming & Entertainment
Providers Capture 40x
Heightened Multiples in
35x
the Public Market
30x
EV/EBITDA
While tactical products & 25x
outdoor recreation 20x
providers have traded at 15x
premium valuations, the 10x
Gaming & Entertainment
5x
sector has surpassed all
other subsegments from 0x
an average EBITDA multiple Mar-20 Jun-20 Sep-20 Dec-20 Mar-21
standpoint through the Market weighted index, Tactical Products & Outdoor Recreation includes: AXON, BC, ELY, CWH, CLAR, DII.B,
year-to-date. ESCA, JOUT, OLN, SWBI, SPWH, RGR, THULE, VFC, VSTO, YETI, AOUT, POWW, GRMN, GOLF, PII, MBUU; Gaming
& Entertainment includes: ATVI, DKNG, EA, EGLX, PENN, SPO, SLGG, FLTR, PBHEA, EGLX, PENN, SPO, SLGG
Source: Capital IQ and Capstone Research
9
Outdoor Recreation & Enthusiasts | April 2021
SELECT TRANSACTIONS
Enterprise EV / LTM
Date Target Acquirer Target Business Description Value (mm) Revenue EBITDA
Junglee Flutter
03/02/21 Develops online gaming software and platforms. $132.1 - -
Games (ISE:FLTR)
Shively Sporting
02/18/21 BSN Sports Provides sports equipment and accessories. - - -
Goods
Good Sportsman Offers binoculars, crossbows, scopes, and other
02/16/21 TRUGLO - - -
Marketing tactical products.
Develops and manufactures firearms for military,
02/11/21 Colt Defense CZG (SEP:CZG) personal defense, and recreation. $256.2 - -
AMMO Provides an online platform to find rifles, shotguns, and
02/11/21 GunBroker.com $240.0 4.0x ~6.0x
(Nasdaq:POWW) other hunting accessories.
The Wheel Offers outdoor accessories including rooftop
02/09/21 EcomAutomotive tents and truck bed racks sold online. - - -
Group
Venice Sleeping Provides electric and non-electric longboards
02/08/21 and accessories. - - -
Longboards Bear Capital
Hevi-Shot Vista Outdoor
02/04/21 Manufactures small arms ammunition. $16.0 - -
Ammunition (NYSE:VSTO)
Country Lane Offers vinyl playground equipment including swing sets,
01/26/21 Swing Kingdom - - -
Gazebos plays sets, and playhouses.
Provides fishing baits and other fishing-related
01/23/21 House of Outdoors Rise Run Capital products to outdoor retailers. - - -
The Brand Manufactures and sells outdoor clothing for men
01/12/21 PENFIELD and women. - - -
Machine
Seawall Provides water sports and marine products for water
01/07/21 Kent Water Sports sport enthusiasts and boaters. - - -
Capital
Maverick Boat Manufactures and designs center and dual console, flats,
01/05/21 Malibu Boats $150.0 1.3x -
Group and bay boats.
01/05/21 ELUX Marine Pure Watercraft Manufactures electric boats. - - -
12/23/20 Kranos Innovatus Capital Manufactures sports equipment. - - -
Sportsman’s Great Outdoors Offers outdoor sporting goods including camping
12/21/20 products and fishing products. $1,082.7 0.9x 5.7x
(Nasdaq:SPWH) Group
Peloton Manufactures and supplies fitness machines and
12/21/20 Precor cardio equipment. $420.0 - -
(Nasdaq:PTON)
Super Free Stillfront Group
12/18/20 Develops casual word games. - - -
Games (OM:SF)
12/17/20 Bicycle Sport Shop Trek Bicycle Operates as a bicycle retailer. - - -
High Voltage Keywords Studios
12/15/20 Develops video games. $50.0 - -
Software (AIM:KWS)
TACO Patrick Industries Provides boating products including sport fishing and
11/30/20 - - -
Metals (Nasdaq:PATK) outrigger systems.
Develops, markets, and distributes PC and
11/25/20 Piranha Games Enad (OM:EG7) console games. $72.7 4.2x 11.0x
Provides outdoor gear with a focus on outdoor packs
10/27/20 BE Outfitter OvareVentures and equipment. - - -
Source: Capital IQ, PitchBook, FactSet, and Capstone Research
10Outdoor Recreation & Enthusiasts | April 2021
SELECT TRANSACTIONS (CONTINUED)
Enterprise EV / LTM
Date Target Acquirer Target Business Description Value (mm) Revenue EBITDA
Easton Manufactures bats, bags, helmets, and other baseball
10/20/20 Rawlings - - -
Diamond and softball equipment.
Provides trapper hats, fleece face shields, and other
10/17/20 SA Company TZP Group outdoor apparel and gear. - - -
10/15/20 G.I. Sportz Kore Outdoor Manufactures paintball related products. - - -
Provides hunting blind products to help individuals hunt
10/15/20 Ghostblind Summit Brands better. - - -
TRUE
10/14/20 Octane Fitness Offers fitness equipment. $33.6 - -
Fitness
Limestone Boat
10/13/20 LL One Manufactures yachts. - - -
(TSXV:BOAT)
Lazydays
10/08/20 Camp-Land Provides new and used recreational vehicles. - - -
(Nasdaq:LAZY)
Assets of Remington Vista Outdoor Comprises an ammunition manufacturing facility
09/28/20 and related intellectual property. $81.4 0.4x
Outdoor (NYSE:VSTO)
Compass Diversified Manufactures closure systems for shoes including laced
09/22/20 Boa Technology shoes, buckles, and sports shoes. $454.0 4.5x 15.1x
(NYSE:CODI)
National Safety Designs and manufactures technical outwear and
08/20/20 Wild Things gear serving U.S. Marines and special forces. - - -
Apparel
Take-Two Interactive
08/18/20 Playdots Develops mobile games. $192.0 - -
(Nasdaq:TTWO)
Cold Iron Provides mobile, console, and personal computer games
08/11/20 Daybreak Game - - -
Studios including shooter and other action games.
Trade Bill’s Outdoor
07/28/20 Southern Reel Offers fishing rods and equipment online. - - -
Sports
Bridge Lake
07/14/20 Siege Sports Supplies custom athletic uniforms and apparel. - - -
Partners
Instinct Binovi Provides eyewear for sport and tactical
07/10/20 disciplines including military. $3.2 - -
Performance (TSXV:VISN)
Lazydays
06/30/20 Total Value RV Offers recreational vehicles and parts. $10.5 - -
(Nasdaq:LAZY)
Lululemon Provides a connected fitness system that streams live
06/29/20 Mirror and on-demand classes. $500.0 - -
(Nasdaq:LULU)
06/23/20 Haas-Jordan Dynamic Brands Manufactures umbrellas for golf and other specialties. - - -
Facebook
06/22/20 Ready At Dawn Develops video games. - - -
Technologies
Provides bicycle motocross products including
06/02/20 Race American BMX retro and modern bike frames. - - -
Duke’s Sporting
06/01/20 H+W Sports Offers athletic uniforms and sports equipment. - - -
Goods
Northland Fishing
05/27/20 Bagley Bait Provides fish baits in the U.S. and Canada. - - -
Tackle
Lone Wolf Manufactures and sells survivalist and escape gear
05/22/20 Vigilant Gear - - -
Distributors including fire starting tools and knives.
Source: Capital IQ, PitchBook, FactSet, and Capstone Research
11Outdoor Recreation & Enthusiasts | April 2021
PUBLIC COMPANY DATA:
TACTICAL PRODUCTS & OUTDOOR RECREATION
Price % 52 Wk Market Enterprise LTM EV / LTM
Company 03/24/21 High Cap Value Revenue EBITDA Margin Revenue EBITDA
Acushnet Holdings Corp. $40.38 84.7% $3,000.0 $3,274.9 $1,612.2 $211.9 13.1% 2.0x 15.5x
American Outdoor Brands, Inc. $24.63 82.1% $345.3 $326.8 $255.3 $41.3 16.2% 1.3x 7.9x
AMMO, Inc. $5.80 58.3% $519.5 $515.8 $40.1 NM NA NM NM
Axon Enterprise, Inc. $133.45 62.8% $8,512.0 $7,974.4 $681.0 $25.3 3.7% NM NM
Brunswick Corporation $90.71 84.1% $7,072.8 $7,536.9 $4,347.5 $749.3 17.2% 1.7x 10.1x
Callaway Golf Company $26.14 80.2% $4,827.3 $5,374.7 $1,589.5 $117.6 7.4% 3.4x NM
Camping World Holdings, Inc. $34.74 78.8% $1,519.8 $3,892.8 $5,446.6 $712.1 13.1% 0.7x 5.5x
Clarus Corporation $15.85 80.7% $496.2 $518.4 $224.0 $22.4 10.0% 2.3x NM
CZG - Ceská zbrojovka Group SE $16.74 90.7% $546.5 $598.0 $284.2 $59.0 20.8% 2.1x 10.1x
Dorel Industries Inc. $10.11 78.1% $331.5 $916.3 $2,762.5 $145.2 5.3% 0.3x 6.3x
Escalade, Incorporated $20.20 84.0% $280.2 $308.3 $273.6 $37.0 13.5% 1.1x 8.3x
Garmin Ltd. $126.78 95.0% $24,287.4 $21,405.0 $4,186.6 $1,210.8 28.9% NM 17.7x
Johnson Outdoors Inc. $134.00 89.0% $1,343.8 $1,187.6 $631.8 $98.9 15.7% 1.9x 12.0x
Malibu Boats, Inc. $76.91 82.7% $1,596.7 $1,759.3 $677.6 $125.2 18.5% 2.6x 14.1x
Olin Corporation $35.91 85.0% $5,697.2 $9,737.6 $5,758.0 $669.1 11.6% 1.7x 14.6x
Polaris Inc. $126.55 89.8% $7,753.5 $8,714.9 $7,108.3 $895.0 12.6% 1.2x 9.7x
Smith & Wesson Brands, Inc. $16.70 60.1% $889.3 $875.0 $1,078.1 $296.0 27.5% 0.8x 3.0x
Sportsman's Warehouse $17.17 93.0% $749.4 $1,021.5 $1,271.7 $124.0 9.8% 0.8x 8.2x
Sturm, Ruger & Company, Inc. $64.71 71.3% $1,135.3 $995.9 $568.9 $147.0 25.8% 1.8x 6.8x
Thule Group AB (publ) $44.45 98.7% $4,647.7 $4,698.6 $953.2 $211.4 22.2% 4.9x 22.2x
V.F. Corporation $76.66 85.5% $30,034.8 $33,480.1 $8,758.6 $1,449.8 16.6% 3.8x 23.1x
Vista Outdoor Inc. $28.58 74.5% $1,666.9 $2,004.5 $2,055.3 $288.3 14.0% 1.0x 7.0x
YETI Holdings, Inc. $66.60 82.3% $5,805.9 $5,731.1 $1,091.7 $257.1 23.6% NM 22.3x
Mean 15.9% 1.9x 11.8x
EV = enterprise value; LTM = last twelve months
$ in millions, except per share data Median 14.9% 1.7x 10.1x
NM = Not Meaningful
Bold indicates trading above 90% of 52wk high Harmonic Mean 12.3% 1.2x 9.0x
Source: Capital IQ as of March 24, 2021
12Outdoor Recreation & Enthusiasts | April 2021
PUBLIC COMPANY DATA: SPORTING GOODS & ACTIVE LIFESTYLE
Price % 52 Wk Market Enterprise LTM EV / LTM
Company 03/24/21 High Cap Value Revenue EBITDA Margin Revenue EBITDA
Academy Sports and Outdoors, Inc. $23.59 84.3% $2,145.2 $3,959.3 $5,462.3 $642.7 11.8% 0.7x 6.2x
Big 5 Sporting Goods Corporation $14.04 79.0% $299.7 $531.1 $1,041.2 $184.5 17.7% 0.5x 2.9x
DICK'S Sporting Goods, Inc. $73.88 91.1% $6,596.1 $8,088.5 $9,584.0 $1,779.8 18.6% 0.8x 4.5x
Frasers Group plc $6.39 91.6% $3,206.1 $4,555.3 $4,967.2 $902.6 18.2% 0.9x 5.0x
Hibbett Sports, Inc. $67.00 85.5% $1,112.0 $1,151.1 $1,419.7 $238.6 16.8% 0.8x 4.8x
Mean 16.6% 0.8x 4.7x
Median 17.7% 0.8x 4.8x
Harmonic Mean 16.1% 0.7x 4.4x
PUBLIC COMPANY DATA: GAMING & ENTERTAINMENT
Price % 52 Wk Market Enterprise LTM EV / LTM
Company 03/24/21 High Cap Value Revenue EBITDA Margin Revenue EBITDA
Activision Blizzard, Inc. $90.51 86.6% $70,123.0 $65,207.0 $8,086.0 $3,120.0 38.6% NM 20.9x
DraftKings Inc. $66.63 89.6% $26,499.1 $24,763.4 $614.5 NM NA NM NM
Electronic Arts Inc. $129.80 86.4% $37,333.9 $31,915.9 $5,670.0 $1,550.8 27.4% NM 20.6x
Enthusiast Gaming Holdings Inc. $7.31 86.6% $846.8 $874.2 $57.3 NM NA NM NM
Flutter Entertainment plc $223.38 95.5% $39,115.1 $42,877.8 $6,026.3 $1,235.7 20.5% NM NM
Penn National Gaming, Inc. $104.06 73.3% $16,231.3 $25,557.7 $3,578.7 $1,081.7 30.2% NM 23.6x
PointsBet Holdings Limited $10.23 74.4% $2,102.8 $1,871.0 $94.8 NM NA NM NM
Sportech PLC $0.36 82.8% $68.7 $58.6 $64.8 NM NA 0.9x NM
Super League Gaming, Inc. $7.18 64.1% $166.0 $159.3 $2.1 NM NA NM NM
Mean 29.2% 0.9x 21.7x
Median 28.8% 0.9x 20.9x
Harmonic Mean 27.7% 0.9x 21.6x
Source: Capital IQ as of March 24, 2021
13Outdoor Recreation & Enthusiasts | April 2021
PUBLIC COMPANY DATA: TRAVEL & LEISURE
Price % 52 Wk Market Enterprise LTM EV / LTM
Company 03/24/21 High Cap Value Revenue EBITDA Margin Revenue EBITDA
Booking Holdings Inc. $2,202.73 89.2% $90,227.8 $88,599.8 $6,796.0 $1,276.0 18.8% NM NM
Carnival Corporation & plc $24.85 82.5% $27,691.8 $46,568.8 $5,594.0 NM NA NM NM
Expedia Group, Inc. $166.14 88.4% $23,901.7 $31,762.7 $5,199.0 NM NA NM NM
Hilton Worldwide Holdings Inc. $118.50 91.9% $32,896.5 $41,392.5 $1,600.0 $506.0 31.6% NM NM
Hyatt Hotels Corporation $80.46 87.3% $8,150.6 $9,921.6 $780.0 NM NA NM NM
Marriott International, Inc. $143.28 89.6% $46,647.7 $57,116.7 $2,119.0 $962.0 45.4% NM NM
Royal Caribbean Group $81.58 82.2% $20,766.9 $37,222.4 $2,208.8 NM NA NM NM
Vail Resorts, Inc. $278.35 83.4% $11,215.0 $13,268.3 $1,587.7 $440.1 27.7% NM NM
Mean 25.2% NA NA
Median 25.2% NA NA
Harmonic Mean 23.6% NA NA
Source: Capital IQ as of March 24, 2021
14Outdoor Recreation & Enthusiasts | April 2021
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. Joseph’s
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 “Emerging Leaders” (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 14 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 Associate
cmcleod@capstonepartners.com | 617-619-3319
Connor is a Research Associate at Capstone Partners primarily specializing in Building
Products & Construction Services, Consumer & Retail, and Healthcare. Prior to joining
Capstone, Connor was a specialist with the Investor Services team at BlackRock. Connor
holds a BA in Economics from Bates College and is a Series 7 Registered Securities
Representative.
15Outdoor Recreation & Enthusiasts | April 2021
FIRM TRACK RECORD
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
STRATEGIC JOINT HAS BEEN ACQUIRED BY HAS BEEN ACQUIRED BY HAS BEEN ACQUIRED BY
VENTURE
a portfolio company of
HAS DIVESTED HAS BEEN ACQUIRED BY HAS BEEN ACQUIRED BY HAS RECAPITALIZED
WITH
16Outdoor Recreation & Enthusiasts | April 2021
CITATIONS
1. Recreation Boating & Fishing Foundation, “3 Million More Licenses Sold Year-To-Date,”
https://news.takemefishing.org/, accessed March 15, 2021.
2. Vista Outdoor, “Events and Presentations,” https://investors.vistaoutdoor.com/event-calendar/default.aspx,
accessed March 14, 2021.
3. NPD, “A Blizzard for Early Season Backcountry Equipment Sales as Consumers Set Their Sights on Cold Weather
Outdoor Activities, Reports NPD,” https://www.npd.com/wps/portal/npd/us/news/press-releases/2020/a-blizzard-
for-early-season-backcountry-equipment-sales-as-consumers-set-their-sights-on-cold-weather-outdoor-
activities--reports-npd/, accessed March 13, 2021.
4. National Shooting Sports Foundation, “TAKING STOCK OF RECORD-SETTING 2020 FIREARM YEAR,”
https://www.nssf.org/taking-stock-of-record-setting-2020-firearm-year/, accessed March 13, 2021.
5. Sturm, Ruger & Company, “Q4 Earnings Webcast,” https://www.ruger.com/corporate/, accessed March 14, 2021.
6. Dick’s Sporting Goods, “Events & Presentations,” https://investors.dicks.com/events/default.aspx, accessed March
16, 2021.
7. YETI, “Fourth Quarter 2020 Highlights,” https://s22.q4cdn.com/322452763/files/doc_presentations/2021/02/YETI-
4Q20-Earnings-Presentation-vFINAL.pdf, accessed March 16, 2021.
8. Seeking Alpha, “YETI Holdings' (YETI) CEO Matt Reintjes on Q4 2020 Results - Earnings Call Transcript,”
https://seekingalpha.com/article/4405336-yeti-holdings-yeti-ceo-matt-reintjes-on-q4-2020-results-earnings-
call-transcript, accessed March 16, 2021.
9. Dick’s Sporting Goods, “FQ4 2021 Earnings Call Transcripts,”
https://s27.q4cdn.com/812551136/files/doc_financials/2020/q4/Conference-Call-Script-vF-(1).pdf, accessed
March 17, 2021.
10. PitchBook, “Private Fund Strategies Report,” https://pitchbook.com/, accessed March 11, 2021.
11. CZ Group, “CZG – ČESKÁ ZBROJOVKA GROUP SE TO ACQUIRE COLT,” https://www.czg.cz/czg-to-acquire-colt/,
accessed March 18, 2021.
12. Intrado, “Super League Gaming to Acquire Mobcrush,” https://www.globenewswire.com/news-
release/2021/03/11/2191124/0/en/Super-League-Gaming-to-Acquire-Mobcrush.html, accessed March 16, 2021.
13. Intrado, “AMMO, Inc. Executes Letter of Intent to Acquire GunBroker.com,” https://www.globenewswire.com/news-
release/2021/02/11/2174152/0/en/AMMO-Inc-Executes-Letter-of-Intent-to-Acquire-GunBroker-com.html,
accessed March 16, 2021.
14. Malibu Boats, “MALIBU BOATS, INC. COMPLETES ACQUISITION OF MAVERICK BOAT GROUP,”
https://investors.malibuboats.com/press-releases/press-release-details/2021/Malibu-Boats-Inc.-Completes-
Acquisition-of-Maverick-Boat-Group/default.aspx, accessed March 17, 2021.
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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