RECREATIONAL PRODUCTS Q1 2015

CONTACTS MERGER & ACQUISITION ACTIVITY

Jacob Voorhees The recreational products industry continued to experience a surge of mergers & acquisitions in Managing Director 2014 with nearly 100 transactions reported for the year, as activity continued to accelerate during (617) 619-3323 the current economic expansion. This extraordinary number of transactions is being fueled by the [email protected] continued consolidation of many recreational product categories, as well as buyers looking to benefit from the growth of the industry, which in-turn is being supported by a moderately Sophea Chau expanding economy, healthy consumer confidence and a continued march towards consumer Director fitness and increased activity levels. (617) 619-3307 [email protected] Recreational Products M&A Transactions

Daniel Schultz 120 Director of Business Development 98 100 (617) 619-3368 [email protected] 80 63 60 54 47 41 43 39 40 31 29 24 20

0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Includes M&A transactions in the U.S. and Canada Sources: Capital IQ and Capstone Partners LLC research

2015 OUTLOOK

The recreational products industry is a moderately expanding market that consistently attracts investment dollars. The industry is expected to show continued strength in 2015, with growth for the year anticipated in the 2%-3% range as economic expansion continues, underpinned by rising employment and wages, which should in-turn boost consumer spending. Increased participation BOSTON rates, the -going fight against obesity and a fitness surge by baby boomers are also expected to CHICAGO contribute to long-term industry growth. While the United States is still the largest market for LONDON recreational products, accounting for approximately 32% of global sales, the European market is projected to continue its steady recovery and the Asian-Pacific markets are expected to show LOS ANGELES above-average growth, all of which are contributing to the industry’s positive outlook for 2015. PHILADELPHIA SAN DIEGO Based on these positive market conditions, the industry’s M&A outlook for 2015 is optimistic, supported by healthy business valuations and a very favorable borrowing environment for buyers. SILICON VALLEY TAMPA

Recreational Products Q1 2015

The wide assortment of NOTABLE M&A TRENDS & TRANSACTIONS companies and product A review of recent transactions in the recreational products industry reveals a categories included in the number of interesting M&A trends including the following: industry’s list of recent transactions indicates the Blockbuster Deals and Middle-Market Transactions: A wide range of acquisitions strength of the are occurring in the industry, with buyers targeting everything from small, single- product companies or individual brands to large corporations with a full stable of recreational products products and brand names. Examples of blockbuster transactions include the recent category overall, and its sale of Varsity Brands to private equity group Charlesbank Capital Partners. Varsity broad-based Brands includes three businesses, Herff Jones, Varsity Spirit and BSN SPORTS. attractiveness as an Financial details of the transaction were not disclosed, but Varsity Brands has sales of investment target. more than $1.2 billion. Other examples of mega-deals include the pending acquisitions of International by Jynwel Capital Limited at a transaction value of $2.2 billion and that of Remington Outdoor Company, which is being acquired by Global Digital Solutions for $1.8 billion. Despite these headline-grabbing deals, most of the transactions in the industry are completed in the middle market and smaller categories. Recent middle-market transactions include such well-known brand names as retailer Sports Chalet and outdoor product manufacturer Igloo Products. At the smaller end of the spectrum we are seeing a wide range of single-product companies, such as Hip Appeal, a manufacturer of hip fitness wraps for active women, which sold for $2 million and the singularly focused company Dead Down Wind, a maker of scent control products that “stop a hunter from smelling like a hunter.” Acquisitions of all sizes provide a way for buyers to gain market share and sustain growth, while building their stable of brands. While large targets enjoy advantages in economies of scale and strong brand recognition, smaller targets can provide buyers with specialized or unique products. Innovative, high quality products and a good reputation among end-users all contribute to competitive advantages and can be found in targets of all sizes.

All Types of Recreational Activities: A wide variety of companies are included in the list of recent industry transactions, including manufacturers, distributors and retailers of apparel and equipment used in a diverse set of recreational activities. Ball sports, adventure sports, fitness activities, winter sports and other categories are all represented in the transactions. While several traditional sports product companies are included, the long list of others contains companies serving smaller niche markets such as scuba and free equipment, equipment, fishing lures, billiards and dart supplies.

Lifestyle brands have also been popular targets, as many categories – such as and yoga – enter the mainstream. Due to shifting consumer interests, recreational activities are evolving. The recent acquisitions of World Industries (skateboarding), PrAna Living (yoga), Camp Nine Surf (), Yukon Charlie’s (snowshoeing) and C4 Waterman (stand up paddleboards) are all examples of the attractiveness of lifestyle products and brands.

The wide assortment of companies and product categories included in the industry’s list of recent transactions indicates the strength of the recreational products category overall, and its broad-based attractiveness as an investment target.

Capstone Partners LLC 2 Recreational Products Q1 2015

Several major sporting NOTABLE M&A TRENDS & TRANSACTIONS (Continued) goods companies are Continued Consolidation in Certain Segments: Although most segments of the developing products with industry have been active, certain categories have witnessed a flurry of M&A activity built-in sensors that and consolidation. For instance, there have been a number of recent transactions in analyze an athlete’s the hunting & shooting market. Targets in the category range from well-known performance and provide companies like Remington Outdoor, Battenfeld Technologies (acquired by Smith & Wesson) and Feradyne Outdoors (acquired by Shockey Enterprises/Snow Phipps feedback during activity. Group), to smaller firms such as Muddy Outdoors, a high end tree stand, safety harness and scent control product supplier acquired by Mainstream Holdings and Top Secret Deer Scents, which was acquired by Portland Outdoors and manufactures a deer scent for the hunting market.

Cycling is another category that has seen elevated activity, with deals reported across the spectrum, from city bikes (Simcoe’s pending acquisition by Hawley-Lambert) and mountain bikes (Ellsworth’s acquisition by BST Nano Carbon) to apparel (SQUADRA’s pending acquisition by K-2), bike helmets (C-Preme Limited, acquired by BRG Sports, Inc.) and bike rentals (Tri-Cycle Rentals’ acquisition by American Bicycle Group).

Continued consolidation is also occurring among retailers, led by Running Specialty Group (RSG), a partnership between The Finish Line and Gart Capital Partners. The Running Specialty Group made at least six acquisitions in 2014, as it continues to buy leading independent running stores for access to attractive geographic markets.

Technology Theme Continues: Technology continues to be a prevalent theme in the industry, one that is expected to intensify in the coming years. Several major sporting goods companies are developing products with built-in sensors that analyze an athlete’s performance and provide feedback during activity. rackets, clubs, fly-fishing rods, and other equipment are all being connected to wireless devices that measure motion and record detailed biometric data that can be used to pinpoint problems with a golf swing, fishing cast or tennis stroke. Furthermore, activity and fitness trackers, smart watches and other wearable technology are among the fastest growing categories in sporting goods, expected to surpass $1 billion in sales in the U.S. in 2014, a 26% increase over 2013. As further proof of the importance of technology to recreational products brands, and recently joined the Consumer Electronics Association.

Technology is also playing a growing role in retail sales, as consumers up their online purchases. A recent survey by Mintel showed that two thirds (67%) of online holiday shoppers planned to buy at least half of their gifts online.

Recent transactions that underscore the industry’s technology trend include Yurbuds, which develops headphones designed specifically for athletes, acquired by Harman International Industries, and Start It Labs’ acquisition of i1 Biometrics, a developer of Impact Sensing Mouthguard, a solution to track and tally cumulative forces of collisions and Impact Intelligence System, a system for detecting undiagnosed sports brain injuries.

Capstone Partners LLC 3

Recreational Products Q1 2015

Private equity buyers are NOTABLE M&A TRENDS & TRANSACTIONS (Continued) attracted to the sector’s Private Equity Firms Attracted to the Industry: Private equity firms continue to be long-term growth acutely interested in the recreational products space and the industry remains a opportunities, as well as sweet spot for these buyers. Private equity buyers are attracted to the sector’s long- the chance to play an term growth opportunities, as well as the chance to play an important role in important role in supporting a company’s expansion efforts during periods of rapid growth and scale- building. The following transactions exemplify some of the recent acquisitions of supporting a company’s recreational products companies by private equity firms. expansion efforts during periods of rapid growth Bruckmann, Rosser, Sherrill & Co. (BRS) acquired Quikfletch LLC and New and scale-building. Products Corporation (September 2014) – BRS, a New York-based private equity firm, acquired New Archery Products (NAP) and Quikfletch from NAP’s founder and other stockholders. The acquisition was made through BRS Outdoor Sports Holdings LLC, which also owns Gamo Outdoors (airguns and other outdoor accessories), Evolv Sports & Designs ( footwear), Magpul (firearm accessories), and Royal Robbins (outdoor and travel apparel). NAP and Quikfletch are manufacturers of fixed and mechanical broadheads, vanes and fletching and other archery related accessories. NAP’s products can be found at mass merchants, sporting goods retailers and dealers throughout the country. BRS was attracted to NAP’s proprietary manufacturing and patented designs, reputable brand name, innovative products and loyal customer base. BRS plans to provide strategic guidance to strengthen the Company’s focus on product development and its position in the archery market.

Chartwell Investments Inc. acquires Easton Hockey, Inc. (August 2014) – Chartwell Investments, a New York-based private investment firm, acquired the Easton Hockey business from BRG Sports Inc. Founded in 1992, Chartwell invests in and partners with family and entrepreneurially owned companies across a range of industries. Chartwell plans to provide “substantial financial backing” to the Company to improve product innovation, strategic retail partnerships and consumer connections. Easton Hockey is a leading designer, developer, manufacturer and marketer of hockey sticks, skates, protective, accessories and apparel worldwide. Chartwell also owns Richard Childress (NASCAR teams).

Vestis Retail Group acquires Sports Chalet (August 2014) – Vestis Retail Group, owned by Versa Capital Management acquired Sport Chalet, a full- service specialty sporting goods retailer with 50 stores in the Western United States. The combination of Sport Chalet with Vestis' East Coast- based retailers (Bob's and Eastern Mountain Sports) creates one of the country’s largest outdoor-focused retail groups, with more than 150 stores and $800 million in annual sales. Sport Chalet strengthens Vestis’ position in the active lifestyle and outdoor categories, provides scale from which to grow and diversifies its geographic footprint. The transaction was valued at approximately $60 million. Versa also owns Hatteras Yachts and CABO Yachts and Polartec (outdoor fabrics).

Capstone Partners LLC 4 Recreational Products Q1 2015

SELECTED RECREATIONAL PRODUCTS M&A TRANSACTIONS

Enterprise Value Date Target Acquiror Target Business Description (mm) Race Face and Fox Factory Manufactures high-performance mountain and road bike wheels Pending $30.2 Easton Cycling Holding Corp. and other high-performance cycling components.

Pending Reebok International Jynwel Capital Limited Manufacturers apparel, shoes and sports related products. $2,200.0

Remington Outdoor Global Digital Also known as Freedom Group, Inc., operates as a firearms, Pending $1,689.2 Company, Inc. Solutions Inc. ammunition and related products company.

Pending Simcoe Hawley-Lambert Manufactures city bikes. -

Pending SQUADRA, INC. K-2 Corporation Manufactures cycling and gear. -

Altamont Operates as a global motocross equipment, apparel and 12/22/14 Fox , Inc. - Capital Partners accessory brand. Charlesbank The parent of BSN Sports and Herff Jones. Products include sports 12/15/14 Varsity Brands - Capital Partners apparel and equipment. Battenfeld Smith & Wesson A designer, importer and marketer of hunting and 12/1/14 $130.5 Technologies Inc. Holding Corporation shooting accessories. The Running Specialty 11/26/14 Run Colorado Operates a running store. - Group (RSG)/Gart Wac'Em Archery 11/17/14 Broadhead Company Manufactures archery broadheads. - Products, LLC Arcus Hunting/Bregal Manufactures scent control products that stops a hunter from 11/17/14 Dead Down Wind - Investments Inc. smelling like a hunter.

11/11/14 Stoneridge Cycle Ltd. Kent International, Inc. Offers bicycles and bike accessories for children and adults. -

Todd & Moore Operates as a leading retailer and distributor of team apparel and 11/11/14 BSN Sports - Sporting Goods, Inc. equipment in South Carolina. Manufactures hip wraps for fashion conscious, active and on the 11/4/14 Hip Appeal, Inc. In Media Corporation $2.2 go women. Manufactures hydration bottles under the Contigo and 9/4/14 Ignite USA, LLC Newell Rubbermaid $308.0 Avex brands. Supplies high end treestands and safety harnesses and a full line 9/4/14 Muddy Outdoors Mainstream Holdings - of scent control products under the Xecute brand.

9/3/14 iHunt Calls Altus Brands, LLC Develops a mobile application for animal and hunting calls. -

Quikfletch LLC and New BRS Outdoor Sports Manufacture fixed and mechanical broad heads, vanes and 9/3/14 - Archery Products Holdings fletching and other archery related accessories. Ellsworth 9/3/14 BST Nano Carbon Manufactures mountain bikes. - Handcrafted Bicycles Chartwell Manufactures and markets hockey sticks, skates, protective 8/27/14 Easton Hockey, Inc. - Investments Inc. accessories and apparel.

8/20/14 XO Athletic EZ GARD/Shock Doctor Manufactures athletic protection products. -

Versa Capital 8/18/14 Sport Chalet, Inc. Operates a chain of retail sporting goods stores. $59.5 Management/Vestis Retails cycles including custom and semi custom bikes for racers, 8/17/14 Pro Peloton, LLC Boulder Cycle Sport, LLC - casual riders and cycling enthusiasts. World Industries INA International/ Develops and owns skateboarding brands including World and 8/10/14 - Skateboard Brands Golden Viking Sports Flameboy vs. Wet Willy.

Capstone Partners LLC 5 Recreational Products Q1 2015

SELECTED RECREATIONAL PRODUCTS M&A TRANSACTIONS

Enterprise Value Date Target Acquiror Target Business Description (mm) Gregory Mountain Provider of technical backpacking, mountaineering and trail 7/23/14 Samsonite International $85.0 Products backpacks, running products and accessories. Chris Tutton of Race Manufactures a full range of wheel sets and components for 6/17/14 Easton Cycling - Face Components Inc. bicycle manufacturers and riders globally. Manufactures fiberglass recreational wakeboard and boat 6/23/14 Four Winns Boats, L.L.C. Bénéteau S.A. - accessories and products. Harman International Develops in-the-ear and behind-the-ear headphones that are 6/17/14 Yurbuds LLC - Industries, Incorporated ergonomically and functionally designed specifically for athletes. Manufactures and markets carrying bags to snowboard and 6/17/14 Zippy Bags, Inc. Individual investor - bicycle shops, as well as outdoor retailers. Provides decks of playing cards - delivered in both physical and 6/13/14 FitDeck, Inc Implus - digital formats - that make exercise simple, convenient and fun. Operates as a licensed sports apparel, headwear and novelty 6/6/14 Cardboard Heroes Lids Sports Group - retailer. Develops protection and performance products and systems for 6/4/14 i1 Biometrics Start It Labs - athletes. Sentinel Capital Manufactures playground and recreational equipment, aquatic 5/30/14 PlayCore, Inc. - Partners, L.L.C. solutions, sports and fitness equipment, and surfacing solutions. Columbia Sportswear 5/30/14 prAna Living, LLC Manufactures outdoor and yoga apparel. $190.0 Company

5/29/14 Metro Run and Walk Fleet Feet Operates as a retail store for runners. -

Designs and manufactures fixed-blade broadheads used in 5/29/14 Slick Trick Broadheads The Outdoor Group - bow hunting.

5/29/14 Vortex Tennis, LLC Zulu Energy Corp. Markets Vortex brand tennis products in the US. -

Synergy Sportz, dba Designs and develops winter sports and outdoor lifestyle 5/20/14 Kwik Tek Inc. CF Yukon Charlie’s products, specializing in snowshoes and complementary products. Doing business as Raskullz, manufactures and markets bike 5/13/14 C-Preme Limited, LLC BRG Sports Inc. - helmets and accessories. Olympia Sporting A leading distributor of sports team apparel and equipment in 5/7/14 BSN Sports - Goods Inc. the state of Alabama. RTH Processing, Inc. and Accella Performance Manufactures colored EPDM granules used in playground 5/1/14 - RDT Manufacturing, LLC Materials Inc. surfacing, running tracks and other athletic products. The Running Specialty Operates eight specialty running stores in Greater Detroit, Ann 5/1/14 Running Fit - Group (RSG) Arbor and Traverse City Michigan. Rents bikes to participating athletes at multi-sporting events in 4/29/14 Tri-Cycle Bicycle Rentals American Bicycle Group - the Northeast.

4/25/14 Top Secret Deer Scents Portland Outdoors Manufactures a deer scent for the hunting market. -

Snow Phipps Group, LLC; Designs, manufactures and sells broad-heads, bow-hunting 4/24/14 Feradyne Outdoors, LLC - Shockey Enterprises accessories and bow-fishing equipment.

4/22/14 Confluence Outdoor J.H. Whitney & Co., LLC Manufactures kayaks, canoes and accessories. -

East Texas Sports Operates as a leading distributor of sports team apparel and 4/22/14 BSN Sports - Center, Inc. equipment in Texas. OrthoLite/ Blue Point Capital Manufactures and supplies insoles, specializing in products for 4/17/14 - O2 Partners, LLC Partners athletic shoes and outdoor boots.

Capstone Partners LLC 6 Recreational Products Q1 2015

SELECTED RECREATIONAL PRODUCTS M&A TRANSACTIONS (CONTINUED)

Enterprise Value Date Target Acquiror Target Business Description (mm) Easton / Bauer Performance Manufactures baseball and equipment and accessories, 4/15/14 $330.0 Softball Business Sports Ltd. including bats, gloves, protective equipment and apparel. Manufactures baseball bats and distributes baseball equipment 4/14/14 Brett Brothers Baseball Team Express - endorsed by the Brett family. Develops and manufactures diving equipment for SCUBA and 4/14/14 Liquivision Products, Inc. Huish Outdoors, LLC - freedivers. Golfsmith 4/7/14 Golf Dimensions, Inc. Retails golf equipment and accessories. - International, Inc. Manufactures golf carts and various accessories including baskets, 4/4/14 Riksha Golf Inc. Dynamic Brands, Inc. - cup holders, rain hoods and utility cart boxes. Manufactures hunting accessories such as wildlife calls and scents, 4/2/14 Hunter's Specialties, Inc. Peak Rock Capital - hunting apparel and other items. Manufactures outdoor sporting goods including hunting blinds, 4/1/14 Kolpin Outdoors, Inc. Polaris Industries, Inc. - firearm cases, game calls, decoys and feeders and other items. Adventure 16, Inc., USA Summit Distributes backpacking, camping, climbing and adventure travel 3/31/14 - Wholesale Division Distribution, LLC accessories to outdoor dealers worldwide. Manufactures and markets coolers and outdoor products for the 3/31/14 Igloo Products Corp. Acon Investments, L.L.C. - recreational and sports markets. Doing business as Shock Doctor, Inc., manufactures and markets 3/17/14 EZ GARD Industries, Inc. Bregal Investments Inc. - sports protection equipment and apparel. Mordecai 3/14/14 Individual Investors Operates as a retailer of sporting goods. - Sporting Goods, Inc. Doing business as Altrec.com, offers outdoor clothing and gear 3/5/14 Altrec Inc. TruSnow.com products online for men, women and kids. $3.3 Manufactures and distributes soccer products for soccer 3/3/14 Campea Individual Investors - enthusiasts, players and retailers. North Technology Oakley Capital; Designs and builds products including sails and sailing gear, 3/2/14 $131.0 Group/North Sails Windway Capital Corp. as well as outboard sportboats , rigging and marine components. Wave Loch, Inc., Whitewater West 2/27/14 Manufactures surf water rides. - FlowRider Product Line Industries Ltd. The Running Specialty Operates two running stores with locations in Fredericksburg and - 2/6/14 VA Runner Group (RSG) Woodbridge, VA. A specialty retailer of apparel, footwear, accessories and 2/6/14 West 49 Inc. YM Inc. $2.7 equipment related to the youth action sports lifestyle in Canada. Manufactures stand up surfing paddles, sup boards and stand-up 1/22/14 C4 Waterman, Inc. Wenonah Canoe, Inc. - surfing equipment. Battenfeld Manufactures monopods, bipods and tripods for the hunting and 1/22/14 BOGgear - Technologies Inc shooting market. Hi Fibre Textiles/Dorel 1/20/14 Sombrio Specializes in apparel for mountain bike riding. - (Sugoi) Tony Hawk and Two signature apparel brands previously owned by 1/13/14 Cherokee Inc. $19.0 Hawk Brands Quiksilver, Inc. Blind Ambition Redneck Outdoor Manufacturer of realistic looking hay bale blinds for hunting 1/7/14 - Bale Blinds Products enthusiasts. Kwikee Kwiver Manufactures quivers, bow accessories, arrow holders, 1/1/14 Altus Brands LLC - Company, Inc. replacement parts and sidewinder hip mounts used in hunting.

CF = confidential Transaction highlighted in blue was completed by Capstone Partners Sources: Capstone Partners LLC research, Capital IQ, company public filings and press releases

Capstone Partners LLC 7 Recreational Products Q1 2015

PUBLIC COMPANY TRADING & OPERATING DATA

Price % 52 Wk Market Enterprise LTM 1-Yr Rev EV / LTM Company 12/31/14 High Cap Value Revenue EBITDA Margin Growth Revenue EBITDA Amer Sports Corp. $19.44 95.7% $2,276.4 $2,918.4 $2,752.3 $198.7 7.2% 4.0% 1.1x 14.7x Black Diamond, Inc. $8.75 60.1% $285.8 $268.6 $222.8 $10.0 4.5% 36.9% 1.2x NM Brunswick Corp. $51.26 98.2% $4,764.8 $4,625.6 $4,014.7 $452.3 11.3% 11.4% 1.2x 10.2x

Callaway Golf Co. $7.70 74.4% $597.3 $673.1 $879.5 $53.7 6.1% 5.3% 0.8x 12.5x

Dorel Industries, Inc. $34.56 95.3% $1,121.0 $1,529.7 $2,610.1 $182.0 7.0% 7.7% 0.6x 8.4x

Escalade, Inc. $15.09 87.7% $210.5 $227.9 $166.2 $17.7 10.6% 22.5% 1.4x 12.9x Head NV $1.88 81.6% $128.8 $258.3 $467.0 $25.4 5.4% 8.6% 0.6x 10.2x Jarden Corp. $47.88 98.3% $9,206.9 $13,596.8 $8,064.7 $930.1 11.5% 15.9% 1.7x 14.6x Johnson Outdoors, Inc. $31.20 98.3% $311.1 $248.1 $425.4 $33.8 7.9% (0.2)% 0.6x 7.3x Lafuma SA $23.18 96.1% $164.6 $145.5 $252.7 $19.8 7.8% (14.6)% 0.6x 7.3x

Performance Sports Group Ltd. $18.25 98.4% $847.2 $1,235.5 $489.3 $51.7 10.6% 20.7% 2.5x 23.9x

EV = enterprise value; LTM = last twelve months Mean 8.2% 10.7% 1.1x 12.2x $ in millions, except per share data Median 7.8% 8.6% 1.1x 11.4x NM = Not Meaningful; NA = Not Available Harmonic Mean 7.5% NA 0.9x 10.8x Last Twelve Month Margin Performance

50.0% 43.7% 42.2% 45.0% 39.7% 40.3% 39.6% 40.0% 35.0% 34.5% 35.0% 29.9% 31.2% 26.6% 30.0% 23.3% 25.0% 20.0% 15.0% 11.3% 10.6% 11.5% 10.6% 7.2% 7.0% 7.9% 7.8% 10.0% 4.5% 6.1% 5.4% 5.0% 0.0% Amer Sports Black Brunswick Callaway Dorel Escalade, Inc Head NV Jarden Corp. Johnson Lafuma SA Performance Corp Diamond, Corp. Golf Co. Industries, Outdoors, Sports Inc. Inc. Inc. Group Ltd.

Gross Margin % EBITDA Margin %

Last Twelve Month 1-Year Revenue Growth

40.0% 36.9%

30.0% 22.5% 20.7% 20.0% 15.9% 11.4% 7.7% 8.6% 10.0% 4.0% 5.3%

0.0% -0.2% -10.0%

-20.0% -14.6% Amer Sports Black Brunswick Callaway Dorel Escalade, Inc Head NV Jarden Corp. Johnson Lafuma SA Performance Corp Diamond, Corp. Golf Co. Industries, Outdoors, Sports Inc. Inc. Inc. Group Ltd.

Source: Capital IQ as of December 31, 2014

Capstone Partners LLC 8 Recreational Products Q1 2015

CAPSTONE PARTNERS: RECREATIONAL PRODUCTS TRANSACTIONS

Recently, Capstone Partners advised Synergy Sportz, dba Yukon Charlie’s, in its sale to Kwik Tek Inc. The transaction resulted in complementary products and market recognition, enhanced distribution channel access, additional sourcing and supply chain expertise and innovative product design and brand capabilities for both companies.

has been Yukon Charlie's management built a leading brand and a scalable business acquired by that, now as part of a larger entity, has enhanced growth opportunities. This transaction is representative of the robust M&A activity in the recreational products space. Both corporate and private equity buyers are active, with many employing a buy vs. build strategy in order to quickly a portfolio company of gain access to growing niches or well-known brands, new sales and distribution channels and expanded geographic markets.

Capstone Partners has completed several transactions in the recreational products industry. These transactions involved companies that manufacture and market a variety of products related to biking, boating, off-roading, hunting and camping. Capstone’s experience in the recreational products sector provides us with insight into the valuable attributes and valuation metrics of a target company, the active buyers in the industry and the nuances of transactions in this space.

has been has been has been strategic acquired by acquired by has divested acquired by joint venture

a portfolio company of

has been financial advisory has recapitalized with has been has been acquired by acquired by acquired by

THE AMERICAN BICYCLE GROUP, LLC

Capstone Partners LLC 9 Recreational Products Q1 2015

RECREATIONAL PRODUCTS TEAM

Jacob Voorhees, Managing Director [email protected] • (617) 619-3323

Jacob is a founding member of Capstone Partners. He focuses on asset positioning, strategy articulation, due diligence and negotiations coordination. Formerly, Jacob was with Andersen Corporate Finance LLC, where he focused his efforts on the software and direct marketing industries. He started his career in New York City with Rabobank International, a multi-national Dutch investment bank headquartered in Utrecht, the Netherlands. While at Rabobank International, Jacob worked in the mergers and acquisitions group focusing on cross-border transactions in the consumer products, food and beverage industries.

The M&A Advisor named Jacob to its prestigious 40-UNDER-40 deal makers list in 2012. Jacob received an MBA from the Sloan School of Management at Massachusetts Institute of Technology (MIT) and a BS from Cornell University. Jacob is qualified as a General Securities Representative.

Sophea Chau, Director [email protected] • (617) 619-3307

Sophea specializes in mergers & acquisitions, private placements and financial advisory services. Her responsibilities include providing financial and valuation analysis, performing due diligence and all marketing materials.

Prior to joining Capstone, Sophea was an analyst at FTN Midwest Securities, a full-service investment banking firm based in Cleveland. While working in their New York office, she focused on M&A advisory for middle-market companies in a variety of industries, including healthcare, pharmaceutical services and marketing & advertising. Sophea is Vice President of the Columbia Alumni Association of Boston and holds a Bachelor of Arts in Economics from Columbia University.

Daniel Schultz, Director of Business Development [email protected] • (617) 619-3368

Dan oversees Capstone’s national business development and industry coverage activities, working closely with current and prospective clients of the firm on matters related to corporate sales, recapitalizations, mergers & acquisitions and growth financings. In his role, Dan is able to deliver specific market intelligence to clients regarding M&A, financing, strategic, industry and competitive trends.

Prior to spearheading the firm’s business development and market initiatives, he was a Vice President in Capstone’s M&A group, managing numerous successful transactions across a variety of industries. Dan also gained hands-on transaction experience as an investment banker at Headwaters MB. He started his career with Ernst & Young’s National Professional AABS practice and later worked in Assurance and Advisory Business Services in the Denver office. Dan received a BE in Biomedical Engineering with a Business Minor from Vanderbilt University. He earned an MBA and a Master of Accountancy from the Daniels College of Business at the University of Denver.

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ABOUT CAPSTONE PARTNERS

Capstone Partners LLC is a premier investment banking firm dedicated to serving For more information the corporate finance needs of middle market business owners, investors and about our expertise, creditors. The firm provides corporate sale & divestiture, merger & acquisition, private placement, corporate restructuring, valuation and financial advisory please visit services. Capstone maintains various industry specialties including one in the www.capstonellc.com Recreational Products industry. The firm also has a merchant banking capability to actively co-invest in transactions. Headquartered in Boston, Capstone has offices in Chicago, London, Los Angeles, Philadelphia, San Diego, Silicon Valley and Tampa.

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