The grilling industry has seen quite a bit of investment activity, with Vista Outdoor acquiring Camp Chef, American Outdoor Brands acquiring Grilla Grills and Middleby acquiring Kamado Joe, Masterbuilt and Char-Griller. Pellet grill company recteq can be added to the list with Norwest Equity Partners (“NEP”) making a significant investment.
Recteq is a designer, marketer, and direct-to-consumer seller of pellet grills and accessories. The brand was co-founded in 2009 by Ron Cundy and Ray Carnes as REC TEC Grills, but the name was later changed to recteq in 2020.
We’ve been fortunate to experience strong industry tailwinds and increased brand awareness which have led to continued strong revenue growth. We feel really grounded with a solid foundation for growth in 2021, and beyond, and are excited to partner with NEP to support our growth objectives.”Ron Cundy, recteq Co-Founder
There is a great culture fit and alignment between the recteq and NEP teams. We are confident that the combination of NEP’s capital and extensive resources as well as a partnership approach will help take us to the next levelRay Carnes, recteq Co-Founder
NEP is an investment firm founded in 1961 with offices in West Palm Beach and Minneapolis. Some of their other investments include Wahoo Fitness, GoHealth, Arteriors and Integrative Nutrition. Jefferies advised on the deal and the deal was leveraged through debt from PennantPark and First Midwest Bank. Norwest Mezzanine Partners and Yukon Partners provided subordinated debt.
recteq is another great addition to our consumer products portfolio. The NEP team has tremendous ability to work with high-growth, founder-owned businesses and we are excited about our partnership with Ron, Ray and the rest of their management team. They’ve built an outstanding lifestyle brand with a culture of innovation that is well positioned for continued growth.Sundip Murthy, NEP Partner