American Outdoor Brands (AOB) acquired grill company Grilla Grills early last year. They made the decision to move the brand from Holland, MI, where they were founded down to AOB’s headquarters in Columbia, MO. To accommodate the recent move, they’ve signed a new lease to increase their footprint.
Our ability to expand the existing lease and gain access to the entire Columbia facility provides us with a potential opportunity to enhance our operational efficiencies in the near-term by fine-tuning our floorplan and work processes to optimize the consolidations of acquisitions from Oregon, Texas, and Michigan that we have completed over the past six months. At the same time, it should position us well for the future by providing us with capacity to grow, a benefit that aligns well with our long-term plans, which include organic growth and strategic acquisitions.Brian Murphy, President and CEO of American Outdoor Brands
The new lease will make them the sole tenant of their building and expand their space from 361,000 square feet to 632,000 square feet. It commences in January of next year and runs until the November 26, 2038.
The incremental net annual lease expense will be about $1.3 million, which is projected to be offset by savings from facility consolidation.