North Tool + Equipment says it doesn't anticipate the acquisition to eliminate any jobs, according to a company news release.
The Sportsman’s Guide, based in South St. Paul, sells its outdoor products through catalogs and online at SportsmansGuide.com, BoatingSavings.com, and WorkWearSavings.com. The Golf Warehouse is an online golf equipment retailer based in Kansas.
You can read the news release below:
BURNSVILLE, Minn. – Nov. 8, 2012 – Northern Tool + Equipment, a leading supplier of high-quality tools and equipment founded and owned by the Kotula family, today announced it has agreed to acquire The Sportsman’s Guide and The Golf Warehouse from Redcats USA, a division of French company PPR, for $215 million.
Pending regulatory approval, the deal will transform Northern Tool + Equipment into a company nearing $1.5 billion in sales.
The Sportsman’s Guide is a South St. Paul, Minn.-based supplier of top-quality outdoor goods sold via catalogs as well as SportsmansGuide.com, BoatingSavings.com and WorkWearSavings.com. The Golf Warehouse is a Wichita, Kan.-based online golf equipment retailer. Both companies will continue to operate as stand-alone brands to take advantage of their considerable brand equity.
Northern Tool + Equipment expects to seamlessly integrate The Sportsman’s Guide and The Golf Warehouse into its current operations, taking advantage of ample economies of scale. Moreover, all the brands share a common target customer that Northern Tool + Equipment has marketed to very effectively for more than 30 years.
No job cuts are expected as a result of the acquisition. Northern Tool + Equipment anticipates eventually adding new jobs as a result of a successful melding of the businesses.
“We are very bullish about this milestone acquisition – it builds on our operational strength and synergies,” said Chuck Albrecht, president, Northern Tool + Equipment. “Furthermore, we were drawn to both companies being family-run institutions with strong management. We look forward to building an even brighter future together.”
Houlihan Lokey advised on the acquisition process. J.P. Morgan Securities LLC is arranging the financing for the transaction.