KV Capital acquired UTV Canada, Inc., a distributor and retailer of ATV and UTV parts and accessories. The company expects to merge UTV Canada with Mountain Sports Distribution (MSD), a full-service powersports distributor that joined the KV Capital Fund II portfolio in 2023.
Financial terms were not disclosed.
“UTV Canada and MSD have a complementary relationship,” said Jonathan Herman, president of KV Capital. “In the powersports industry, we see three main pillars: snowmobiles, motorcycles and UTVs. MSD has built a strong presence in snowmobiles and motorcycles, while UTV Canada specializes in UTVs. Both businesses have great talent and a strong desire to grow. Together, their strengths will let them bring a new level of service excellence to the entire powersports industry.”
The deal originated when UTV Canada CEO Stacy Nehring contacted MSD after learning about the KV/MSD partnership.
“In the past, our team had discussed the possibility of a sale,” said Nehring, who retains equity and will join MSD as part of the partnership. “It is a tight-knit industry, and when we heard about MSD working with KV, we wanted to ask MSD’s owners about their experience and the opportunity. What we heard from Chuck Gorton, MSD’s CEO, was very exciting and led us to today. This deal means my team and I can do more of what we love—helping off-road enthusiasts experience more—and less on administrative work and managing back-office systems.”
MSD CEO Chuck Gorton also welcomed the partnership and said, “We’re very excited to partner with the UTV Canada team, grow our dealer network and brand portfolio, and offer our customers even more. Partnerships like this one are why we were eager to join KV.”
The acquisition will “optimize strategic and operational excellence for MSD and UTV Canada,” according to KV Capital. The company said it will merge the two companies to “share expertise and create efficiencies while retaining their brand identities in the market.”
“Both MSD and UTV Canada’s dealers can expect improved access to more products with the same helpful staff and retail experience they know—but with more horsepower behind it,” said KV Capital’s Herman. “This is a significant milestone in our journey to build Canada’s leading powersports platform through partnerships with strong powersports distributors and brands.”
Bryan & Company LLP provided legal counsel to KV Capital. Swainson, Miki, Peskett LLP provided legal services for UTV Canada.
Image courtesy UTV Canada
