Financing Follows Earlier Investments from
Preeminent Investor Group; Kent to Continue to Invest
in Leadership, Innovation, and Operations
SALT
LAKE CITY, April 19, 2024 /PRNewswire/ -- Kent
Outdoors ("Kent" or the "Company"), which has been helping people
in their pursuit of outdoor adventures for more than 60 years,
today announced a $100 million credit
facility from asset-based lender (ABL) Eclipse Business Capital.
The new ABL facility follows recent investments from Goldman Sachs
and Comvest Partners. These investments are critical to the
Company's efforts to implement a strategy for future growth and
success as it continues to market innovative new products for
outdoor enthusiasts and adventure seekers.
"We appreciate being trusted to deliver this critical financing
on an expedited timeline. It was a pleasure partnering with such a
select group - the Company, Arete Capital Partners as well as term
lenders including Goldman Sachs and Comvest," said Marty Battaglia, chief executive officer of
Eclipse Business Capital.
With the financial support of its backers, Kent expects to make
significant operational improvements, as well as bring in new
leadership.
"We appreciate Eclipse's partnership approach; their
organization worked expeditiously throughout and delivered the
financing exactly as outlined. The capital investment is
instrumental to maintaining solid partnerships with our key vendor
partners and customers while allowing Kent the flexibility to also
pursue new growth opportunities," said Kent Executive Chairman
Lee Belitsky. "The support also
allows the Company to continue to build our market share by
attracting new marquee customers and maintaining long-term
relationships with key suppliers."
Belitsky joined Kent as part of the capital investment, bringing
significant experience in the sporting goods industry as a key
executive who helped drive Dick's Sporting Goods growth over the
past 25 years. Additionally, Kent recently appointed Rob Otto as chief financial officer. Otto joined
Kent after successfully completing the sale of RW Designs, where he
served as the company's chief financial officer and chief operating
officer, a wholesale and direct-to-consumer business. Prior, Otto
held CFO and COO executive leadership roles at multiple CPG
companies such as Z Gallerie, Hudson
Jeans, Seven For All Mankind, and Affliction Holdings.
"We are encouraged by the commitment to Kent's brands from its
employees and stakeholders,"
said Kent Sowell, vice president
of Goldman Sachs. "Coupled with new additions to the Kent
executive leadership team, we are excited to support the Company as
it focuses on its next phase of growth."
While Kent's business operations are evolving with a focus on
customer service and consumer satisfaction, its key operating
divisions continue to move forward with an eye on the future with
new product innovation for the 2024 season. Kent is now in a
position to move more aggressively forward in servicing its loyal
customers and those entering outdoor sports for the first time with
incredible products. Kent's dedicated employees have spent
countless hours helping the Company get to this point.
The Company has retained key leaders of core divisions such as
Dave Cook in the Outdoors Division
and C.J. Vlahovich in Watersports, both of whom have been with the
Company for more than 25 years. Additionally, Zack Eckert, who also has extensive experience
in the outdoor industry, has been promoted to general manager of
the BOTE brand. Eckert has been with BOTE for more than five years,
most recently as vice president of sales, and previously held
various leadership positions with West Marine for more than 11
years.
"Kent is synonymous with outdoor sports and the pursuit of
outdoor adventure," said Cook. "Focusing on the Company's
profitable core business lines that provide the greatest promise
for long-term growth will help right the ship and navigate the
Company into calmer waters."
In connection with the investment of capital and the management
team coming onboard, the Company performed a strategic review of
its operating units and determined that it would continue to seek a
buyer for its bike business, Kona. This move allows the Company to
direct its resources toward investment in its key water sports
businesses. The bike industry has faced very significant challenges
in the post covid world and Kona has not been immune to these
headwinds.
"Within the Kent Outdoors family of brands, we pride ourselves
on a robust legacy characterized by resilience and an unwavering
ability to overcome hurdles, consistently emerging stronger in the
face of adversity," said Vlahovich. "While the path to improvement
has been demanding, our devoted team remains steadfast in our
conviction that Kent Outdoors is destined to continue as the
foremost innovator in cultivating vibrant brands that elevate
outdoor enjoyment for all."
About Kent Outdoors
Founded in 1959 in New London,
Ohio, Kent Outdoors is a diverse platform of outdoor brands
with a broad product set spanning personal flotation devices,
wakeboards, water skis, towable tubes, snowboards and more. The
Company's portfolio of more than 15 iconic brands comprises
industry- leading names such as BOTE, HO/Hyperlite, Connelly,
O'Brien, Liquid Force, Onyx, Aquaglide, Barefoot/Fatsac and Arbor
Snowboards (managed by agreement with the Arbor Collective), which
have all contributed to the Company's long-term success in serving
a broad base of action sports participants of all ages and skill
levels.
About Areté Capital Partners
Areté is an operational improvement and investment firm which
provides independent fiduciary and stewardship services to
companies experiencing complex organizational change. Areté is
proud to serve on Kent's Board of Directors and currently maintains
C-Suite and Strategic Finance roles, having supported the Company
throughout this period of growth and leading the Company's
refinancing efforts.
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SOURCE Kent Outdoors