KV Capital has announced the formation of KV Private Equity Fund II Limited Partnership (Fund II) and its first Fund II acquisition of Mountain Sports Distribution Inc. (MSD).
Headquartered in the heart of one of Canada’s primary powersports playgrounds, Golden, BC, MSD exclusively distributes for several globally-recognized brands in the powersports and avalanche safety industries. These brands include 509, TOBE Outerwear, FLY Racing, Sidi and Mammut, covering a four-season spectrum from snowmobiling to summer moto sports.
With over 560 dealers in Canada and the U.S., MSD has been recognized three times by The Globe and Mail as one of Canada’s Top Growing Companies. Together with KV Capital as a strategic operational partner, MSD looks to continue to drive accelerated growth by expanding their roster of exciting brands and dealer partners across Canada and beyond.
We’re extremely excited about the partnership,” says Chuck Gorton, CEO, MSD. “We’ve had our eyes on the growth and future of the business and with KV’s partnership, those goals are absolutely attainable. MSD is ready to scale up and better service our dealer partners. Having the support and expertise of KV is going to help us become better than ever.”
No changes are expected for dealer partners as the collaboration commences. MSD looks to continue to partner with their keystone brands, build out new relationships and continue to nurture the values and partnerships that continue to make MSD stand out in the powersports market.
“We applaud MSD’s authenticity and are proud to partner with their team in continuing to build their market presence,” says Jonathan Herman, president, private equity, KV Capital. “We see significant opportunity to work together in supporting the continued development of their best-in-class enterprise.”
Financial terms of the transaction were not disclosed. For KV Capital, Ernst & Young LLP served as the financial and tax advisor while Bryan & Company LLP provided legal counsel for the acquisition. Bennett Jones LLP and Deloitte Corporate Finance Inc. provided Fund II formation legal and tax advice, respectively. For MSD, Grant Thornton LLP acted as the financial advisor and Michael, Evrensel & Pawar LLP delivered legal services.
KV Capital continues to actively seek new investment opportunities for KV Private Equity Fund II.