Northwest sporting goods retailer G.I. Joes, Inc. has signed an agreement with Gryphon Investors, a San Francisco-based private equity firm to complete a transaction that enables current shareholders to take some cash out of the company, while providing more capital to help fuel retail expansion. Terms of the deal, which is contingent upon a favorable vote by G.I. Joes shareholders, were not disclosed. They expect to close the transaction later this month.
G.I. Joe's sales are reportedly expected to exceed $240 million this year.
CEO Norm Daniels and the entire management team are expected to stay in place and will “continue to own a substantial share of the company.”
Norm Daniels said, “We are pleased to be partnering with Gryphon as we enter a new growth phase for Joes and move our store concept to the next level.” They expect to open 15 stores this year, up from the original plan for 11 stores.
“Joes is extremely well-positioned in its market and has a truly differentiated knowledge of the Northwest outdoor lifestyle and experience,” commented Kurt Kaull, Gryphon partner. “The company has a healthy and proven business model of increasing same store sales and rolling out new stores in contiguous geographies, and we are delighted to be working with such a talented management team to grow this successful franchise.”
>>> The best defense is a strong offense here. Joes is clearly expanding faster to defend its position in the Northwest and make it tougher to compete there
>>> An article published in The Oregonian had Daniels explaining that the deal enabled them to keep jobs in Oregon, instead of getting acquired and having those jobs eliminated or moved to Pittsburgh
