SGB 2023 Year In Review: Active Lifestyle M&A Activity – Part I
Active Lifestyle M&A Activity in 2024: What You Need to Know
As we reflect on the year that was 2024, it’s clear that the active lifestyle industry saw its fair share of acquisitions, from small to medium-sized deals. However, major mergers and acquisitions were a rarity for the second year in a row. The reasons? Well, higher interest rates, an uncertain economy, and a decrease in the number of consolidators all played a role.
One big headline was VF Corporation’s sale of the Supreme brand to EssilorLuxottica, the parent company of Ray-Ban and Sunglass Hut, for a whopping $1.5 billion. This move came after VF Corporation had acquired Supreme for over $2 billion back in 2020. The decision to sell was driven by CEO Bracken Darrell, who aimed to improve the company’s liquidity position and focus on growing core brands like Vans and The North Face.
Another notable transaction was Clarus Corp.’s sale of its Precision Sport segment to JDH Capital Co. for around $175 million. By offloading this segment, Clarus was able to pay down debt, shift focus to other sectors, and avoid the complexities of operating an ammunition business.
Vista Outdoor, known for its acquisitions in the outdoor, golf, and ammo industries, made a strategic decision to separate its segments into two independent companies. This move led to the sale of its ammo business to Czechoslovak Group (CSG) for $1.91 billion and the sale of its outdoor segment to Strategic Value Partners for $1.125 billion.
The year also saw some key mergers in the apparel sector, with brands like Champion, Sperry, and Salt Life changing hands. Lolë Brands, New Era, and Iconix were also active in acquiring new brands.
In the footwear space, we saw companies like RG Barry, Pajar Canada, and Nidecker Group engage in mergers, while Yeti Holdings made a surprising acquisition of Mystery Ranch and Butter Pat Industries to expand its product offerings.
The highlight of the year was KKR’s purchase of Varsity Brands for a reported $4.75 billion, signaling a major deal in the team sports sector. Retailers like JD Sports, Shoe Carnival, and Mountain Warehouse also made notable acquisitions in 2024.
From Colt CZ’s acquisition of grenade launcher technology to Camping World’s expansion into Louisiana, the first half of 2024 was filled with interesting M&A transactions in the active lifestyle industry. Stay tuned for more updates as we dive deeper into the world of finance and securities!
