Platinum Equity has signed a definitive agreement to acquire GSM Outdoors from Gridiron Capital. The transaction is expected to be completed in the third quarter of 2024. Gridiron Capital acquired GSM in 2020.
The parties did not disclose the financial terms.
GSM Outdoors CEO Eddie Castro will continue to lead the outdoor and consumer sporting goods company.
“We are proud of the company we’ve built and the success we have had, and now look forward to a new chapter,” said Castro. “Platinum’s expanded access to capital, M&A resources and operational expertise can help further accelerate our growth and create more opportunities for GSM to serve our customers.”
Platinum Equity Co-President Louis Samson praised the company’s leadership and culture as vital to its success.
“GSM is led by an experienced team of outdoor enthusiasts who are passionate about their mission and the products they bring to market,” said Samson. “We look forward to working with the management team to support a new phase of growth and expansion.”
GSM, based in Irving, TX, is home to a diverse, growing portfolio of over 50 brands.
“The popularity of outdoor recreation is driving increased demand for a wide range of innovative, technically advanced products tailored for enthusiasts and adventure seekers of all kinds,” said Samson. “The sector is characterized by an attractive combination of resilience, growth potential and M&A opportunities, which suits our firm well. We believe GSM’s distribution network, experience bringing new products to market, rigorous quality control and care for its customers position it well to capitalize on those dynamics and diversify its portfolio to meet the growing demand.”
Platinum Equity Managing Director David Glatt noted that GSM Outdoors will continue investing in organic growth and M&A under Platinum Equity’s ownership.
“Our work has proven that GSM is highly regarded among consumers and channel partners for its customer service, diverse product portfolio and efficient operations,” Glatt said. “The company is an excellent platform for growth in a highly fragmented market and has proven to be an attractive home for brands looking to increase their reach and maximize their potential.”
Glatt said that Platinum Equity will partner with the company to expand its offerings through in-house R&D and pursue the large and growing pipeline of prospective acquisitions in existing product categories and new segments.
“We share the company’s passion for serving outdoor enthusiasts and are excited to get to work,” added Glatt.
Gridiron Capital Managing Partner Kevin Jackson said his firm partnered with Eddie Castro and the GSM management team in 2020 to “build an industry-leading outdoor enthusiast platform.”
“Over the course of our partnership, GSM has grown significantly through strategic expansions into fishing and other rugged outdoor categories while dramatically scaling the cellular and app subscription business, completing 18 acquisitions of iconic brands, and driving consistent organic growth through new product development,” noted Jackson. “The GSM team’s passion for serving their customers and winning in the marketplace is contagious, and we are incredibly proud to have been GSM’s partner during this exciting time. We are confident that GSM is positioned for even greater success going forward.”
Platinum Equity, headquartered in Los Angeles, is a global investment firm with over $48 billion of assets under management. The firm owns Mad Engine, the printer and manufacturer of apparel and accessories that produces private label products for large manufacturers and brands in the active lifestyle industry. Mad Engine is also home to Neff Headwear, LRG Clothing and Fifth Sun. Platinum Equity previously owned Fishing Holdings, LLC, the Flippin, AK-based manufacturer of the Ranger Boats, Stratos and Triton fishing boat brands, which the firm sold to Bass Pro Group.
Bank of America Merrill Lynch will arrange financing for the GSM acquisition. Latham and Watkins is serving as Platinum Equity’s legal counsel on the transaction.
Image courtesy SOG Knives
