Airhead

Falconhead Capital LLC and M3 Outdoor Investments have teamed up to purchase Kwik Tek Inc., a supplier of outdoor branded products for the water and winter sports industries. Financial terms of the deal were not disclosed.

Kwik Tek designs a variety of outdooring products using the Airhead, Dryopak, Sportsstuff and Yukon Charlie’s brands. The target’s portfolio of sports products include: towables, inflatables, life jackets, wakeboards, kneeboards, snowshoes, trekking poles, snow sleds, pool floats, lounge items and accessories. Kwik Tek, based in Colorado, was founded in 1991 by the target’s current CEO Aaron Kramer.

M3 Outdoor is a private equity company founded by former U.S. Navy Seal Mike Noell. The investment firm looks to provide capital and management resources to new and emerging businesses. Noell is the founder and former CEO of Blackhawk Products Group, a manufacturer of tactical, military, law enforcement and outdooring equipment.

Falconhead is a New York-based private equity firm that focuses on the consumer industries. The middle-market PE firm invests up to $100 million per transaction. The firm’s current and previous portfolio consists of a variety of businesses, including: beverage company Multi-Flow Industries LLC, denim brand NYDJ Apparel LLC (the brand was later sold to Crestview Partners and Maybrook Capital Partners), ESPN Classic Europe, Tickets.com, Italian ice chain Rita’s Water Ice Franchise Co., Extreme Fitness Inc., and coffee maker Javo Beverage Co.

Recent outdoors-related deals include: Peak Rock Capital’s purchase of Do Outdoors Inc., the owner of fishing product manufacturer Lew’s Fishing; Cabela’s Inc.’s (NYSE: CAB) agreement to purchase Bass Pro Shops for $5.5 billion; and Bass Pro Group LLC’s deal to acquire Fishing Holdings LLC from Platinum Equity Partners. In 2015, Norwest Equity Partners picked up a stake in ski and snowboard equipment retailer Christy Sports and Johnson Outdoors said it will add underwater watch maker Seabear.

Lazard Middle Market LLC served as financial advisor to Kwik Tek and Greenberg Traurig LLP acted as legal counsel to Falconhead. J.P. Morgan (NYSE: JPM) provided senior revolver financing for the transaction and LBC Credit Partners also provided senior term financing.

 

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