The M&A market heated up in the outdoor industry again last week as three industry brands changed hands. Gregory Outdoor Products, Teko socks and Native Eyewear all welcomed new ownership, with the first going independent for the first time since its inception, the second losing its founder as a distributor takes over, and the last entering public life as a corporate subsidiary. While terms were not disclosed in either the Gregory or Teko deals, investment bankers said it is a great time to be shopping outdoors.

With the most active strategic buyer having withdrawn from the market, credit tight and equity prices trending down, valuations are trending more reasonable. The downturn in the value of the U.S. dollar is also likely having an effect with international companies acquiring U.S. brands at a bit of a discount. At Silver Steep Partners, Robert Farinholt estimates that EBITDA multiples have fallen from the 9x to 12x range to the 7x to 9x range.


“There’s more of an emphasis now on the scale, the quality, and the predictability of earnings,” said Farinholt. “Investors are still seeking growth, but there’s much more focus on visibility.”