Canada’s Mission Ready Services Inc. has signed a letter of intent to acquire military and outdoor outerwear maker Wild Things in the U.S. for $4.5 million.
Under the terms of the agreement, Mission Ready will acquire the business and certain assets of Wild Things, LLC consisting of $3.5 million cash paid on closing of the acquisition and $1 million in convertible promissory notes. The notes will mature two years from date of issuance and are convertible at 10 cents during the first year subsequent to the close and 15 cents during the second year. Mission Ready officials said they are working with a New York-based investment firm to finalize a commitment of $3.5 million in debt financing to satisfy the cash portion of the purchase price.
Founded in 1981 and based in Middletown, RI, Wild Things produces technical garments for the U.S. Military, including Marines, Special Forces, including U.S. Navy Seals and other elite units, Department of Homeland Security and other federal agencies, law enforcement, alpinists, explorers, climbers, bikers, campers, hikers, and outdoors enthusiasts worldwide. The company manufactures its products in the U.S. under two divisions: Wild Things for the outdoor enthusiast and WT Tactical for the unique needs of the military and law enforcement communities. In addition to the design studio and executive offices located in Middletown, RI, Wild Things operates a factory and second design studio in Gorham, NH.
“We believe these companies, when combined, will allow us to become one of the leaders in the industry in designing, manufacturing and providing state of the art products to law enforcement and special forces personnel throughout the world,” said Jack Wyant, Wild Things director and managing director of Blue Chip Venture Company, an investor in Wild Things. “We have high expectations for the company. Guided by safety and superior technology, its leaders are passionately focused on customers’ physical protection and on building shareholder value.”
The Wild Things team is led by Ed Schmults, whose experience in the outdoor apparel business includes Patagonia, and Moonstone Mountain Equipment. Schmults is the former vice chairman of the board of directors of Recreational Equipment Inc. (REI) and a current board member for Vera Bradley. Also, he is a former member of the board of trustees of National Outdoor Leadership School (NOLS), an international leadership and outdoor skills school, from 2009 to 2015. Schmults served on the board of the Outdoor Industry Association from June of 2013 to August 2015. In addition, Schmults serves as a mentor to retiring Special Forces members through his involvement with the Commit Foundation and the Station Foundation.
“This transaction enhances Wild Things ability to serve our customers – military and consumer – by improving our product development, manufacturing and sales capabilities,” Schmults said. “The entire Wild Things team is excited about the opportunities ahead.”
Headquartered in Vancouver, BC, Canada, Mission Ready provides services for the global defense, security and protective services, including environmentally responsible cleaning, logistics, maintenance, program management, consulting and client representation solutions.
“As Mission Ready focuses its business model to become a premier manufacturer, we are excited with the prospect of adding the Wild Things team and business to the company’s current manufacturing business,” said Mission Ready CEO Rod Reum. “The combining of the entities will allow us economies of scale, open new markets and allow access to additional sales channels for both businesses.”
Mission Ready expects to close the acquisition in the fourth quarter of 2016, subject to financing and regulatory approval.
Photo courtesy Wild Things