The spate of recent mergers and acquisitions continues following on the heels of the Side By Side Stuff/Seizmik/EPI/System3 buyouts by Nivel comes news that SuperATV is going to be sold to publicly traded Dorman’s once the anti-trust formalities are out of the way. The deal valued at more than $500 million ($490 million in cash at closing, plus an earn-out of up to $100 million in the aggregate payable over a two-year period subject to certain performance targets being achieved in 2023 and 2024), is subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act, and is expected to close in the second half of 2022.
“This combination aligns with our strategy to diversify our customer base and product offering by providing a compelling entry point to the large and rapidly growing powersports industry,” claims Kevin Olsen, Dorman’s President and CEO. “Not only is SuperATV a leader in their space with an extensive portfolio of widely recognized brands and proprietary products, but they also have a highly successful approach to new product innovation that aligns closely with Dorman’s business model. As a result, we are confident we can leverage Dorman’s playbook to further accelerate growth. “
SuperATV generated $211 million in net sales in fiscal 2021, and the combined company is expected to be a best-in-class powersports aftermarket platform. SuperATV’s omni-channel approach, which combines a leading direct-to-consumer platform and relationships across a network of 3,500+ dealers enables customers to have access to the products they need wherever and whenever they choose to shop. SuperATV’s recognized reputation for quality and innovation has cultivated a passionate and loyal customer base.
“The combination of Dorman and SuperATV is extremely exciting,” adds Lindsay Hunt, SuperATV’s CEO and President. “The resources and expertise that Dorman provides will allow us to accelerate our growth and expand to our fullest potential by delivering an even better experience and more products that our customers love. We look forward to becoming part of the Dorman family upon the successful completion of the transaction.”
THE OTHER SHOE DROPS…
“We are excited to welcome SuperATV to the Dorman family and are excited about the value the combined company will generate for our customers and shareholders,” concludes Olsen. In connection with the transaction, Dorman expects to obtain a $500 million incremental credit facility under the terms of its existing credit agreement, resulting in net leverage of less than 2.3x. The cash flow generation of the combined company is expected to provide Dorman with flexibility to continue executing on its strategic priorities. Until the transaction closes, both companies will operate independently.