Shortly after EMS announced their Management buyout, The B.O.S.S. Report sat down with the company’s CEO and President Will Manzer, VP-GMM Pete Gilmore and CMO Scott Barrett.

BOSS: I understand you just finished telling the rest of the company about the MBO, what was the reaction?

Will Manzer: It was great! I think the company has been prepared for this for quite a while now. I made my intentions about a management buyout clear very early on and everyone was expecting this. In fact I came on board with this very goal in mind – this was spelled out with ARG (American Retail Group) prior to my coming on board. Actually we had the intention to do this a year prior to my joining the company and several different private equity firms have approached us with different offers. We decided to go with Whitney and see a long and sustainable future with them.

BOSS: What were the motivations behind the buyout?

Will Manzer: There were really three levels of motivation behind this.

First there is the personal level – We felt that an inspired management team that partly owns the company is the best way to take our vision and explode it. This deal is a very personal issue for all of us. We love the brand and we love the company.

The second is purely strategic. The company we have chosen as a partner, J.H. Whitney, is known for taking companies under their wing and they really want to win with EMS.

Third is the motivation provided by this deal – nothing is more personal than a management led buyout. It provides a terrific motivation tool for everyone at the company.

Scott Barrett: I think there is also an element of change involved. Our partnership with Whitney will let us become more authentic and move to the past – the way EMS was. It will let us use that authenticity to separate ourselves from the big box stores.

BOSS: Is the battle between Dicks and TSA in the Northeast having any effect on EMS stores?

Pete Gilmore: In markets where our stores are in the same area as a Dick’s we generally do quite well. TSA historically has been catering to more of the bat and ball crowd, so they really have no effect on us, but where we are seeing a challenge is with Galyan’s being pulled into Dick’s. We also see some effects in areas where Dick’s and TSA are getting very promotional. Now, with Gart Sports’ involvement with TSA we are keeping a close eye on them and their shift to winter sports in our area. We are competing more in the specialty market than in the big box market.

BOSS: How will you be separating EMS from the big box retailers?

Will Manzer: The outdoor athlete is our main focus. This is a much narrower focus than big box stores – a narrower focus than REI. We have, for the most part, 7,500 square foot footprints, and going forward we will only have stores this size. We have exceptional customer service and a visibly authoritative staff that is trained to engage customers and also educate them. We will be able to represent the community outdoor store.

Inside the stores will be an adrenaline-rich atmosphere. We will also have a larger gear presence over time, which we feel is very different from big-box.

Scott Barrett: I came on-board because I saw a huge opportunity to build an authentic outdoor lifestyle brand. We are taking a very different approach than EMS has in the past. There will be a seamless integration between our on-line store and the retail stores.

We will also be launching a 188 page “cata-zine” with a visual connection to the website and the stores. The content will focus on the “hero-athlete” and educating our customers…

BOSS: How is the ownership of EMS structured now?

Will Manzer: J.H. Whitney has a majority interest in the company now, and select members of the management team own a significant percentage.

BOSS: What did ARP receive in the deal?

Will Manzer: All I can say is that I saved a lot of money by switching to Geico.

BOSS: What about J.H. Whitney, what do they want out of the deal?

Will Manzer: Whitney approaches their investments with a very pragmatic attitude, and they are truely in it for the long-term. If it happens, we would love to take EMS public at some point… During the next 12 to 18 months we will focus on perfecting the brand strategy of the company. During this time revenue growth will come from our enhanced web presence. After that we will begin opening new stores in new markets, but in outdoor retail, this needs to be done with precision. We need to be very careful and expand purposefully… Right now web revenues are a very small part of the business, and we expect them to become eight to ten times larger than they are today, and that is a conservative estimate. They will become 12-13% of total sales in the next two to three years.