KL Outdoor

Situation

KL Outdoor, based in Muskegon, Michigan, was founded in 1982 by the Harris family, becoming the manufacturer of the world’s largest selling brand of recreational kayaks and pedal boats. Additional products included a line of globally distributed resin-based portable restroom modules and accessories for premium outdoor events.

Although the business had struggled through the economic downturn in 2008, and actually entered receivership, it had secured additional investment and over the next seven years experienced unprecedented success.

During 2016, it was determined that a new partner would be better suited to grow the business.

Solution

As advisor to KL Outdoor, Amherst ran a robust and competitive process to identify an investor with the vision to see the value in both of the Company’s major lines of business, and the experience and resources to help it achieve it’s potential.

Ultimately, New Water Capital, a private equity firm with an impressive portfolio of consumer product businesses and a track-record of success helping their portfolio businesses reach new levels of success was identified as the ideal fit.

Results

New Water embraced the company’s “big box” customer base and opportunities for growth. They also had a strong desire to maintain key operating facilities and headquarters in West Michigan.

Less than six months after the sale was finalized, new owner New Water Capital announced a merger of KL Outdoor and Montreal-based GSC Technologies, manufacturer of the Future Beach branded kayak, pedal boats, and stand up paddleboards.

This move nearly doubled the size of the business, creating an organization that is recognized as the dominant manufacturer of personal recreational non-motorized watercraft. Muskegon, Michigan will remain the headquarters, positioning West Michigan as a leading manufacturing center for these products.