American Outdoor Brands (NASDAQ: AOUT), the holding company for various outdoor brands including Smith & Wesson, has announced that it has entered into an agreement to purchase privately owned Grilla Grills for $27M in cash ($24M when factoring in the future tax benefits). The acquisition will allow American Outdoor Brands to expand into the fast growing outdoor cooking market and compete with companies like Vista Outdoor (NYSE: VSTO) who purchased Camp Chef in 2016 and has been expanding.
Grilla Grills, based in Holland, MI, is a provider of grills and smokers founded in 2015 by Dave Shidler, Owner & President, and Mark Graham, Engineering & Sales Manager. They have generated net sales growth of over 161% in the past two years, with a compound annual growth rate of approximately 50% over the last five years, and calendar 2021 net sales of totaling over $15 million. The company has amassed a loyal consumer following, and its products are sold 100% direct-to-consumer on the company’s website,
and through two retail locations in Holland, Michigan and Dallas, Texas details the press release.
American Outdoor Brands, Inc. is an industry leading provider of outdoor products and accessories, including hunting, fishing, camping, shooting, and personal security and defense products, for rugged outdoor enthusiasts. The company produces innovative,
top quality products under its brands Caldwell®; Wheeler®; Tipton®; Frankford Arsenal®; Hooyman®; BOG®; MEAT!; Uncle Henry®; Old Timer®; Imperial®; Crimson Trace®; LaserLyte®; Lockdown®; ust®; BUBBA®; and Schrade®.
Brian Murphy, President and CEO of American Outdoor Brands, said in the press release, “Expanding our outdoor lifestyle category is an important component of our long-term strategic plan, and today, we are excited to welcome Grilla Grills into the American Outdoor family of brands. We have carefully searched for acquisitions that are a fit for our brand lane structure, have plenty of runway for future growth, and allow us to leverage the investments we have made in our e-commerce platform by bringing complementary products and consumers into our brand portfolio. Through its commitment to quality, innovation, and its customers, Grilla has developed a highly respected and authentic brand that aligns well with our core values, and is a perfect fit within our outdoor lifestyle brand offering. We look forward to leveraging our Dock & Unlock™ strategy to take Grilla to the next level by further expanding its innovative and high-quality product line, broadening its loyal consumer base, and delivering sustainable future growth.”
Dave Shidler, President of Grilla, said, “We founded Grilla Grills over seven years ago out of a desire to provide consumers with high-quality, innovative grills and exceptional customer service, allowing them to be stars in their own backyards. Once we met the team at American Outdoors Brands, it quickly became clear that they share our passion for innovation, the customer experience, and the outdoors. We are excited to join forces and take Grilla into its next phase of growth as part of the American Outdoor Brands family.”
The acquisition, which is set to close in a matter of days, is an asset purchase funded by cash on hand and from American Outdoor’s existing line of credit. Along with the acquisition, American Outdoor is increasing their the capacity on their revolving line of credit with TD Bank by $25M to a total of $75M with an accordion feature for an extra $15M.