Monomoy Capital Partners is purchasing West Marine Inc. (Nasdaq: WMAR), a manufacturer of boating supplies and water gear materials, for approximately $338 million. West Marine will become a privately held company as a result of the deal.
Founded in 1968, West Marine operates more than 250 retail stores selling a variety of boating gear for power boaters, sailors, anglers, watersport and paddle-sport enthusiasts. The target distributes a variety of recreational and commercial boating supplies such as: fishing tools, spinning reels, tackle boxes, waterproof boots, gloves, hats, plow anchors, boat covers, life jackets, and boat seats. West Marine, based in Watsonville, California, reaches domestic and international customers through its e-commerce website and retail stores across the U.S. and Puerto Rico.
Monomoy Capital is a New York-based private investment firm with approximately $1.5 billion in committed private equity capital. Founded in 2005, Monomoy Capital backs middle-market businesses with at least $100 million in annual sales. The firm has acquired more than 40 companies that target the industrial, distribution and consumer sectors.
As the summer season arrives, outdoor-focused businesses begin to heat up as prime middle-market targets. Some related deals include: Malibu Boats’ acquisition of rival company Cobalt, a manufacturer of recreational boats and boat gear; Falconhead Capital's purchase of Kwik Tek Inc., a maker of wakeboards and snowsleds; 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.
The current deal is expected to close in the third quarter of 2017. Guggenheim Securities LLC is acting as acted as financial adviser to West Marine, while Sidley Austin LLP is serving as legal counsel. Jefferies LLC is acting as financial adviser to Monomy, while Kirkland & Ellis LLP is serving as legal adviser.