KV Capital recently announced the acquisition of UTV Canada — one of Canada’s top distributors and retailers of ATV and UTV parts and accessories. The deal will see UTV Canada merge with Mountain Sports Distribution (MSD), a full-service powersports distributor that is part of KV Capital’s portfolio.
“UTV Canada and MSD have a complementary relationship,” says Jonathan Herman, president of private equity at 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’s CEO, Stacy Nehring, reached out to the MSD team after learning about the KV-MSD partnership.
“In the past, our team had discussed the possibility of a sale,” says 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 welcomes the partnership. “We’re very excited to partner with the UTV Canada team, grow our dealer network and brand portfolio, and offer our customers even more,” he says. “Partnerships like this one are why we were eager to join KV.”
The acquisition will enhance strategic and operational performance for both MSD and UTV Canada, according to a statement from KV Capital. The two teams will merge to share expertise and create efficiencies while retaining their individual 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,” says Herman. “This is a significant milestone in our journey to build Canada’s leading powersports platform through partnerships with strong powersports distributors and brands.”
Financial terms of the deal were not disclosed. KV Capital says it is actively seeking new investment opportunities in the powersports space to add to its $400 million investment fund. The team expects to have more news to share soon.