The rising popularity of outdoor recreation has reportedly fueled “significant” growth in the Outdoor Recreation & Enthusiasts market, according to recent findings in the Outdoor Recreation & Enthusiasts Sector Update published by Capstone Partners.
Capstone said in its latest report that as more individuals seek nature-based experiences, sector operators have actively worked to capture this expanding consumer base.
“Strategies such as sector consolidation and the cultivation of strong brand identities have become central to attracting and retaining new participants,” the report’s authors wrote. “These companies have not only grappled for market share in the expanding space but have also aimed to build consumer trust and limit brand switching as competition intensifies.”
“This growth has signaled a robust and resilient market, driven by changing consumer preferences and values toward wellness, sustainability, and experiential lifestyles,” Capstone suggested. Capstone said the market’s expansion presents both opportunities and challenges for operators who must balance steady growth with maintaining brand reputation and quality.
Strategic Buyers Continue to Bolster Sector M&A Activity
M&A activity in the Outdoor Recreation & Enthusiasts sector has surged 63 percent year-over-year, reportedly driven by rising consumer participation and companies’ push to become trusted lifestyle brands.
Capstone reported that transaction volume for the YTD period climbed from 54 deals in YTD 2024 to 88 in YTD 2025, underscoring a dynamic and competitive deal environment. This momentum has reportedly been supported by broader economic tailwinds, including consistent growth in Disposable Personal Income (DPI).
DPI rose 4.5 percent year-over-year in Q2 2025, 4.1 percent in Q1 2025, and 4.8 percent in Q4 2024, outpacing inflation rates of 2.5 percent, 2.7 percent and 2.7 percent, in the same periods, according to the Bureau of Economic Analysis (BEA) and the Bureau of Labor Statistics (BLS).
This sustained growth in disposable income has likely bolstered consumer confidence and spending. Notably, the Consumer Confidence Index rose 2.0 points month-over-month to reach 97.2 in July, according to The Conference Board. This uptick was said to reflect improving perceptions of current economic conditions, further fueling continued investment in the Outdoor Recreation space.
“Strong sector fundamentals and a healthy macroeconomic backdrop have enabled participants to capitalize on a lively acquisition landscape, consolidating smaller operators to strengthen strategic positioning in a competitive market,” Capstone noted.
Strategic buyers have remained highly active, contributing 67 deals YTD, an 86.1 percent increase compared to 36 deals in the prior year-to-date period. Financial buyers having also shown modest growth, with deal volume rising to 21 in YTD 2025 from 18 in YTD 2024. From a segment perspective, five of six key categories having all posted positive year-over-year momentum, with the only volume decline in Tactical & Hunting. However, that segment may rebound if tariffs on metals like brass and copper ease.
Capstone expects heightened acquirer interest in segments experiencing strong consumer engagement through year-end and into 2026.
The firm said M&A multiples in the Outdoor Recreation & Enthusiasts sector have normalized following the COVID-era bull market. Average EBITDA multiples have ticked lower recently, falling to 8.7x between 2024 and YTD from 9.1x over the 2022/23 period. The average multiple YTD has declined by almost three and a half turns compared to 2020/21 (12.1x EV/EBITDA).
Sector participants with strong brand equity, particularly those in the Sporting Goods segment, have typically seen premium valuations, often north of the sector average. Notably, Kontoor Brands acquired Helly Hansen for an enterprise value of $897 million, equivalent to 1.4x EV/Revenue and 12.5x EV/EBITDA in February 2025.
Top Sporting Goods and Outdoor Recreation M&A Deals in 2025 (So Far)
Among the major deals in the 2025 year-to-date period was Dick’s Sporting Goods recently completed $2.4 billion acquisition of Foot Locker, Inc.
Closer to home for the Outdoor industry, VF Corp., parent of The North Face, watched as its denim spin-off Kontoor Brands, in June, acquired Helly Hansen, a major player in outdoor outerwear and sailing, from Canadian Tire for approximately $900 million.
UK-based thread manufacturer Coats Group agreed in July to acquire U.S.-based footwear insole maker OrthoLite for $770 million.
In a go-private deal, SoCal-based Big 5 Sporting Goods, a significant player in outdoor equipment, footwear and apparel, snow sports, hardwoods, apparel, and hunting, fishing and camping gear, agreed to be acquired by a partnership comprising Worldwide Golf and Capitol Hill Group in a $112.7 million deal. Capstone noted that Capitol Hill’s financial backing and Worldwide Golf’s retail expertise are expected to help re-accelerate Big 5’s growth.
In a more recent deal, Backcountry acquired Portland’s Velotech, Inc. to broaden its Cycling category capabilities. Terms of the deal were not disclosed, but Backcountry highlighted Velotech’s headquarters and will-call showroom in Portland to provide regional accessibility and nationwide delivery. This deal came on the heels of another local Utah deal in July.
Backcountry acquired local Utah outdoor specialty and snow sports value retailer Level Nine Sports. The two Level Nine Sports retail locations in Utah, located in Millcreek and Ogden, will reportedly remain open and will continue to serve the local outdoor community with additional retail support from Backcountry.
Both deals come after the outdoor gear and apparel retailer was acquired by CSC Generation less than a year ago.
In August, Sender One Climbing acquired the franchising climbing gym brand’s flagship LAX (Los Angeles Airport) Gym location. Sender One also boasts additional locations throughout Southern California, including Westwood, Playa Vista, Santa Ana, and Lakewood. A new location in Alisa Viejo is scheduled to open in 2026. Kachuwa Impact Fund joined as the lead equity investor in a new entity formed to acquire the property.
Perhaps no deal was more interesting for its unique buyer positioning as one put together by the town of Nederland, Colorado, which announced a deal in early July to acquire hometown snow sports resort, Eldora Mountain Resort, from its prior owner Powdr, which owns and operates Boreal and Soda Springs in California, Copper Mountain in Colorado, Mt. Bachelor in Oregon, SilverStar Mountain in British Columbia, and Snowbird in Utah. The Town’s Board believes the deal could close by early October.
“The seller has opened its books to town leadership, underwriters and advisers, allowing us to fine-tune projections. While we cannot disclose exact figures, we can share that mountain revenue will cover our municipal bond obligation,” the Board indicated in the FAQs published for the town of less than 1,500 residents. “Current models show we can build a reserve of $10 million in the first couple of years. This reserve will sit in the Mountain Recreation Enterprise Fund to pay debt obligations during poor snow years.”
Castle Peak Holdings, the outdoor adventure investment firm founded by Ben Weinberg and Mike Weiss and the company behind Trailborn hospitality brands, acquired the Snow King Resort in Jackson Hole, WY, in April. Located within a 10-minute walk of the historic town of Jackson, the property will reportedly undergo renovations to upgrade and expand the on-site amenities and enhance the building’s exterior, lobby, meeting spaces, and dining offerings. The acquisition marks Castle Peak’s eighth property and the company’s largest, following the recent opening of Trailborn Grand Canyon, Trailborn Surf & Sound and Trailborn Highlands.
It was also a busy Colorado summer for Boulder’s Full Cycle Bikes & Colorado Multisport retail shop, which was acquired by Mike’s Bikes, the 18-store bike retail chain based in California’s Marin County. The bike shop and the Full Cycle Café bar were closed from June 17 -19 and reopened as Mike’s Bikes. Mike’s Bikes is owned by Pon Holdings BV, a Dutch conglomerate in the transportation sector. Pon’s is said to be one of the five largest bike manufacturers worldwide and “owns bicycle brands Caloi, Cannondale, Cervélo, Derby Cycle (owner of Focus), GT, Gazelle, IronHorse, Kalkhoff, Mongoose, Santa Cruz, Urban Arrow (cargo bikes), Veloretti, and Schwinn, among others.”
On the water, but also quite impressive for its brand consolidation and U.S. manufacturing capabilities, May saw former Pelican International executives acquire the assets, excluding GSI Outdoors, of Pelican International, Inc. and Confluence Outdoor, Inc. through a court-approved Sale and Investment Solicitation Process (SISP) under the Companies’ Creditors Arrangement Act (CCAA) in Canada and Chapter 15 in the United States. The combined portfolio now includes the Pelican, Wilderness Systems, Dagger, Perception Kayak, Advanced Elements, and Boardworks paddlesports brands.
“This transaction was led by former Pelican President and CEO Danick Lavoie, along with former executives Frederic Guay and Guy Prenevost. A diverse and experienced group of private investors, represented by Vincent Chiara, president and founder of Mach Capital, Marc Varadi, president of RIMAP Hospitality, Luc Sabbatini, founder of Ganesh Capital, and Charles Malo, Board member and investor, has partnered with management to set Pelican Intl’s path for growth, resilience, and success,” the company said at the time.
At the end of July, Farm to Feet parent Nester Hosiery announced its acquisition of the assets of sock maker Fox River Mills, essentially blending two of the top outdoor sock brands along with the biggest performance merino wool sock maker in the U.S. Fox River Mills will wind down Osage, IA production, relocating manufacturing assets to Nester’s Mount Airy, NC headquarters. Nester and Fox River teams aim to ensure on-time delivery to Fox River customers during the transition.
In April, BioLite Energy announced its acquisition deal with Goal Zero, “combining two pioneers in the portable and off-grid energy sectors.” The individual BioLite and Goal Zero brands will reportedly continue in the marketplace while combining core sales, operations, marketing, and engineering teams. In addition to core outdoor channels, the organization is reportedly set to continue expanding into the home energy space in 2025 and beyond, with broader offerings designed to service an increasingly unreliable grid.
Beyond apparel, footwear, outdoor gear, and sporting goods, the camping and hiking RV segment also experienced notable M&A activity. A recent report from the RV Industry Association said nationwide RV shipments for the year-to-date period through July 2025 increased 5.2 percent to 213,338 units compared to the YTD period last year.
July 2025 and YTD 2025 RV Wholesale Shipment Summary
Notable Campground and RV Center Deal Flow
Fun Town RV, the towable recreational vehicle (RV) dealer, ramped up its consolidation efforts, acquiring Michigan’s Larry’s RV Center in April, Florida’s Nature Coast RV in May, Arizona’s Orangewood RV Center in June, and Indiana’s Edmundson RV in July.
Further demonstrating activity in the RV sector, Windish RV Center acquired Airstream of Utah and Airstream of Wyoming in May 2025, expanding Windish RV’s reach into two new states.
“The strategic move strengthens Windish RV’s position as a leading regional partner for the Airstream brand and reinforces its commitment to delivering premium RV experiences,” Capstone stated. “The dealership is expected to capitalize on rising participation in camping and associated outdoor activities.”
Also in May 2025, in the luxury outdoor experiences space, Nationwide RV and Resorts acquired Bryce Glamp and Camp, a premier luxury glamping resort located near Bryce Canyon, UT, for an enterprise value of $3.6 million, equivalent to 3.6x EV/Revenue. According to Capstone’s report, “This strategic acquisition enhances Nationwide RV and Resorts’ portfolio and strengthens its presence in Bryce Canyon, a high-demand tourist destination. The resort is well-positioned to benefit from the region’s growing popularity and increasing interest in upscale outdoor experiences.”
Total M&A Deals May approach by Year End
Overall, transaction volume has climbed to 88 deals in Capstone’s Outdoor Recreation & Enthusiasts sector as of July 23, up from 54 deals in the same period a year ago, plus a dozen or so deals tracked by SGB Data.
Capstone said M&A momentum has been supported by broader economic tailwinds, noting that disposable personal income (dpi) rose 4.5 percent YOY in Q2 2025, 4.1 percent in Q1 2025, and 4.8 percent in Q4 2024, outpacing inflation rates of 2.5 percent, 2.7 percent, and 2.7 percent, in the same periods, according to the Bureau of Economic Analysis (BEA) and the Bureau of Labor Statistics (BLS).
“This sustained growth in disposable income has likely bolstered consumer confidence and spending. Notably, the Consumer Confidence Index rose 2.0 points month-over-month to reach 97.2 in July, according to The Conference Board. This uptick reflects improving perceptions of current economic conditions, further fueling continued investment in the Outdoor Recreation space.”
Strategic buyers have remained highly active in the year-to-date period, contributing 67 deals YTD, an 86.1 percent hike compared to 36 deals in the prior year period. Consolidation has emerged as a leading growth strategy YTD.
Peter Bailey, senior director in Capstone’s Consumer Investment Banking Group, said, “Enthusiasts and casual consumers continue to participate and find good value in their spending in Outdoor Recreation and are willing to pay price increases for brands they trust. Strategics have increased their M&A activity and private equity may follow suit as more certainty on tariffs develops with continued announcements of trade deals.”
Financial buyers showed modest growth, with deal volume rising to 21 in YTD 2025 from 18 in YTD 2024. Capstone said PE firms have grown more cautious amid macroeconomic uncertainty and market hesitations. The report states, “PE-backed companies in the sector have developed a timid acquisition mindset, creating a significant opportunity for strategics to integrate smaller sector players and drive value accretion.”
Capstone expects heightened acquirer interest in segments experiencing strong consumer engagement through year-end and into 2026.
M&A Multiples Normalize Following the COVID-Era Bull Market
Average EBITDA multiples have ticked lower recently in the Outdoor Recreation & Enthusiasts sector, falling to 8.7x between 2024 and YTD from 9.1x over the 2022/23 period. The average multiple YTD has declined by almost three and a half turns compared to 2020/21 (12.1x EV/EBITDA). Sector participants with strong brand equity, particularly those in the Sporting Goods segment, have typically seen premium valuations, often north of the sector average. One notable exception is Kontoor Brands, which acquired Helly Hansen for an enterprise value of $897 million, equivalent to 1.4x EV/Revenue and 12.5x EV/EBITDA in February 2025.
Image courtesy Big Agnes
