As K2 and Russell push back from the table to digest their recent acquisitions, the consolidation wave in sporting goods continues unabated as Escalade Sports moved last week to acquire the assets of North American Archery Group LLC out of bankruptcy court. Products are sold under the Fred Bear, Jennings, Golden Eagle, Brave, and Satellite Archery brand names.
The deal, subject to court approval by June 6, is reportedly worth $11.1 million, with $4.8 million in cash and the assumption of $6.3 million in debt.
ESCA said it expects the acquisition to add between $12 and $14 million in annual sales and should add to 2003 earnings, but the amount was undetermined at his time.
The deal expands Escalades reach outside of the game segment and into the hunting category with one of the most revered brand names in the archery business. The Fred Bear brand is the prize here, reflecting the NAAG founders commitment to product innovation.
Escalade will fund the deal through existing credit lines with Bank One Indiana N.A.
