Wind Point Leads Worldwide Sports Recap

Following an introduction by a member of its advisory board, Wind Point Partners of Chicago led the recapitalization last Thursday of Worldwide Sports & Recreation, the parent company of Bushnell and Voit sporting good companies, which had $150 million in total revenue in 1998.

“We became aware a year ago that the company was being marketed,” said Joseph Messner, a Wind Point adviser. “They were unable to complete the deal then, but we stayed in touch and were able to offer the opportunity to sell the business without disrupting the ongoing business.”

Simultaneous to the recapitalization, Messner was appointed president and chief executive officer of Worldwide. Messner had been president of Bushnell for six years when the company was a division of Bausch & Lomb.

Wind Point Managing Director Rich Kracum said the value of the recapitalization exceeded $100 million, with Wind Point committing $60 million from Funds III and IV to obtain a majority stake in the company. Kracum said approximately two-thirds of Wind Point’s equity commitment went to the recap, while the balance will be put in abeyance for future acquisitions.

Additional equity financing came from Messner’s management team and the seller, an individual, who retained a minority stake in the company. Antares Leveraged Capital Corp. provided senior debt financing for the transaction, and Northwestern Mutual Life of Milwaukee provided subordinated debt. Like the equity commitments, the debt financing was structured to finance future acquisitions in addition to the recap.

“I think the exciting part is [Bushnell] is a great franchise in an exciting business area,” Messner said. “We want to leverage that marketing and distribution and look for additional product lines that will complement the existing business.”

The company will begin evaluating acquisition candidates immediately. Kracum said targets will expand product offerings, such as accessories that have general applications beyond enthusiast markets.

“Realistically, Bushnell is a leader in the markets they serve,” Kracum said. “So we want to grow those categories while adding new products through internal development and acquisitions.”

Messner has extensive experience working with private equity firms. In addition to leading First Alert for two years after Thomas H. Lee bought the company, he is on the board of directors of American Lock, a Goldner Hawn Morrison portfolio company and the board of Totes Isotoner, a Bain Capital portfolio company.