KCM CAPITAL COMPLETES ACQUISITION OF POWERSPORTS AFTERMARKET RETAILER ROYAL DISTRIBUTING
Investment in Royal Distributing Builds Upon KCM’s History of Partnering with Leading Enthusiast-Based, Aftermarket Parts and Accessories Platforms to Support Their Next Phase of Growth
January 18, 2023
Chicago-based private investment firm KCM Capital Partners LLC (“KCM”), an investor in lower middle-market business services, value-added distribution, and specialty industrial companies, announced today that on November 4, 2022, it completed the acquisition of Ontario, Canada-based Royal Distributing (“Royal” or the “Company”). The transaction was completed in partnership with Company management and Chicago-based private equity firm Prairie Capital (“Prairie”). Terms of the transaction were not disclosed.
Founded in 1990, Royal Distributing is Canada’s leading omnichannel specialty retailer serving the powersports enthusiast market for snowmobile, ATV, UTV, dirt bike, motorcycle, and watersports aftermarket products. With a wide selection of specialty parts, accessories and performance gear catering to virtually all makes, models and ride types of powersports activities, the Company serves a loyal base of customers through its five Canadian-based retail locations and its comprehensive e-commerce platform.
Company management, led by owners Jordan Smart and Scott Spark, helped build the Royal Distributing business before deciding to partner with KCM to position the Company for enhanced growth. Consistent with KCM’s investment philosophy – Keeping Continuity Matters – Royal Distributing will remain under the guidance of current leadership, who remain actively invested in the business and will continue to oversee day-to-day operations.
Jordan Smart, shareholder and CEO of Royal Distributing commented, “We are excited to partner with KCM and Prairie Capital. With their financial and strategic resources, I’m confident we can accomplish our shared vision of accelerating the growth of the business, while creating opportunities for our valuable employees, vendors and customers. We look forward to this next phase of growth with KCM and Prairie.”
Jon Gilbert, Partner at KCM said, “Jordan and Scott have built a strong and sustainable platform in the powersports aftermarket. As powersports enthusiasts themselves, their passion for their industry, products and customers really shines through. As the largest Canadian powersports aftermarket retailer with a strong brick-and-mortar presence combined with a leading and fast-growing e-commerce platform, Royal is truly in a unique position to offer powersports enthusiasts a value-added and differentiated customer experience. We couldn’t be more excited to partner with this experienced management team.”
CIBC Bank provided senior debt financing in support of the transaction, while Katten Muchin Rosenman LLP served as legal counsel to KCM.
About Royal Distributing:
Founded in 1990, Royal Distributing is Canada’s leading omnichannel specialty retailer serving the powersports enthusiast market for snowmobile, ATV, UTV, dirt bike, motorcycle, and watersports aftermarket products. With a wide selection of specialty parts, accessories and performance gear catering to virtually all makes, models and ride types of powersports activities, the Company serves a loyal base of customers through its five Canadian-based retail locations and its comprehensive e-commerce platform with an industry-leading shipping and return policy. For more information, please visit www.royaldistributing.com.
About KCM Capital Partners:
KCM Capital Partners is a Chicago-based private investment firm focused on investing in lower middle-market business services, value-added distribution and specialty industrial businesses throughout North America. Founded in 2017, KCM follows a simple philosophy – Keeping Continuity Matters – which is emblematic of our belief in the importance of a healthy culture and collaborative, trustworthy partnerships. With this strategy in mind, we look to support founders and management teams of niche market leaders with creative solutions and strategic guidance to effect transformational growth. For more information, please visit www.kcmcap.com.
Contact:
Jon Gilbert
Partner
(312) 902-524
jgilbert@kcmcap.com