Dealmaker Q&A: Norwest Equity Partners on Acquiring United Sports Brands
Tony Armand of Norwest Equity Partners shares the strategy that led his firm to reinvest in a brand they believe in
United Sports Brands (USB), a collection of six sporting goods brands, rejoins the portfolio of Norwest Equity Partners (NEP), a middle-market private equity firm based in Minneapolis and West Palm Beach, as a radically different company than the one NEP sold in 2014. Tony Armand, a partner with NEP, says that their growth prospects are global.
Middle Market Growth: When sourcing this deal, what were you looking for in an investment target, and how does United Sports Brands fill those requirements?
Tony Armand: USB is a leader in protective and performance sportswear, bringing innovative products to athletes around the world across its Shock Doctor, McDavid, Cutters, Nathan, PEARL iZUMi and Glukos brands. As we evaluate investment opportunities, we look for profitable, industry-leading companies like USB where we believe we can help accelerate their continued growth.
MMG: What attracted your firm to the sporting goods sector, and how does this deal fit into your broader investment strategy?
TA: NEP has a long and successful track record investing in the sporting goods and active lifestyle sector. Over several decades, we have helped great brands—like Wahoo Fitness, Shock Doctor, Pelican Products, Pure Archery, Michaels of Oregon, Christy Sports and more—grow their platforms and bring their products and services to more enthusiasts around the world. With USB, we feel strongly that both our experience with the company and our long history in the sector will help drive the business to new heights.
MMG: USB is rejoining NEP’s portfolio for a second time. What was the line of thinking that led to the reacquisition?
TA: During our initial six-year investment period, NEP worked with Shock Doctor to increase its position as a market leader in the performance and protective equipment category as well as create and acquire new products lines. While Shock Doctor is still a key part of the USB brand portfolio today, the company has grown tremendously over the years and looks much different than it did back in 2014. We are excited about the growth prospects for the company and we believe that its relentless focus on the athlete makes it a great time to invest in the business again.
MMG: What are some industry headwinds you’re watching in the sports products area, and how will you drive growth for USB despite those challenges?
TA: Like with any consumer business, the macroeconomic environment is top of mind. We will be squarely focused on USB’s continued innovation and brand development to drive growth, regardless of market conditions.
MMG: The press release mentioned the goal of expanding the company’s “international reach and footprint.” Are you eyeing any particular markets, and do you plan to enter those via organic growth, acquisitions or other types of partnerships?
TA: USB is a global business. While the company’s footprint outside of North America is significant, we believe it has much more room to grow. Europe and Asia are specific geographies that the management team is focused on, and we will look to support their key growth initiatives in all markets—some of which are organic, and some that are acquisition-focused.
This interview has been lightly edited and condensed for clarity.
Hilary Collins is ACG’s Associate Editor.
Middle Market Growth is produced by the Association for Corporate Growth. To learn more about the organization and how to become a member, visit www.acg.org.
