Mountain Sports Distribution, Inc. (MSD), a distributor in the powersports industry headquartered in Golden, British Columbia, was acquired by KV Capital.
KV Capital, based in Edmonton, also reported forming KV Private Equity Fund II Limited Partnership (Fund II) and said MSG is the fund’s first acquisition.
MSD exclusively distributes for several major brands in powersports and avalanche safety industries, including 509, Tobe Outerwear, Fly Racing, Sidi, and Mammut. With over 560 dealers in Canada and the United States, MSD has been recognized three times by The Globe and Mail as one of Canada’s top growing companies.
With KV Capital as a strategic, operational partner, MSD plans to expand its brand and dealer partner roster.
“We applaud MSD’s authenticity and are proud to partner with their team in continuing to build their market presence,” says KV Capital’s President, Private Equity, Jonathan Herman. “We see significant opportunity to work together in supporting the continued development of their best-in-class enterprise.”
MSD Founder and CEO, Chuck Gorton said, “Collaborating with KV Capital creates additional momentum for our business and is removing the barriers to our expansion,” notes Gorton. “Building from a foundation of aligned values, the financial resources and intellectual capital from this partnership will contribute to elevating MSD’s profile and market position.”
The terms of the transaction were not disclosed.
For KV Capital, Ernst & Young LLP served as the financial and tax advisor, while Bryan & Company LLP provided legal counsel for the acquisition. Bennett Jones LLP and Deloitte Corporate Finance, Inc. provided Fund II formation legal and tax advice, respectively. For MSD, Grant Thornton LLP acted as the financial advisor and Michael, Evrensel & Pawar LLP delivered legal services.
