GO Outdoors landed a $45.7 million investment from a private equity firm and a new chairman to help more than double its store count to 70 in the next four years and become a “category killer” in outdoor specialty retailing.
The global investment firm 3i agreed to acquire new and existing shares of GO Outdoors for a significant minority stake. The deal leaves the founder and management of GO Outdoors with significant stakes in the company alongside YFM Equity Partners, another investor. The deal came as GO Outdoors named former Tesco executive Colin Holmes to replace outgoing Chairman John Lovering, who had served just eight months in the role.
GO Outdoors has grown rapidly by locating its stores in large, out-of-town locations and offering an broad assortment of product at competitive prices. It currently operates 30 stores and plans to open 40 more by 2015. According to British media reports, it was among several companies competing to acquire assets of Blacks Leisure in late January, when that British outdoor retailer called off the talks.
“We have built a great partnership with management, to help them fulfill the company’s potential as a supportive minority investor and are already working on a number of key projects together to deliver this,” said 3i’s Justin Maltz, who now serves on GO Outdoors’ board of directors. “The founders have done a fantastic job in building the business and we think Colin’s experience will support the next step up in scale perfectly.”
