Kinderhook recapitalizes Coleman Powersports

As part of the transaction, several seasoned industry executives are joining the maker of powersports vehicles' board of directors: Todd Balan, Mark Hanley, Steve Hill and John Larson.

Kinderhook Industries recapitalized Coleman Powersports, a Tempe, Arizona-based producer of entry-level powersports equipment sold through “Big Box” retailers. Twin Brook Capital Partners financed the deal, while Hudson Capital Advisors provided financial advice to Coleman.

PRESS RELEASE

New York, NY – Kinderhook Industries, LLC (“Kinderhook”) announced today the recapitalization of Coleman Powersports (“Coleman” or the “Company”) in conjunction with management. Financial terms of the transaction were not disclosed. Coleman Founder and CEO, Rich Godfrey, will remain in his current role as CEO and join the Company’s Board of Directors.

Founded in 2010 and headquartered in Tempe, AZ, Coleman is a leading producer of entry-level powersports equipment sold through “Big Box” retailers. Coleman has solidified itself as the market-leader in Mini bikes, Go karts, All Terrain Vehicles (“ATVs”) and Utility Task Vehicles (“UTVs”) sold outside of the traditional dealership channel. With a focus on supply chain and its network of 8,000+ post-sale service centers, Coleman has successfully “created the category” of selling powersports to “Big Box” retailers or other non-dealer accounts. Coleman operates two facilities in Tempe, AZ with 85 total employees.

As part of the transaction, Kinderhook will be adding several of its Business Building Professionals to Coleman’s Board of Directors, including Todd Balan, former Vice President of Corporate Development for Polaris Inc. (NYSE: PII), Mark Hanley, a longtime Kinderhook Business Building Professional, and current Kinderhook portfolio company CEOs J Pearson (Vehicle Accessories, Inc.), Steve Hill (Thermacell Repellents, Inc.), and John Larson (Bestop, Inc.). Collectively, this group will bring (i) expertise in building successful brands, (ii) extensive experience in the powersports industry, and (iii) deep relationships with Coleman’s existing and prospective retail customer base.

“Partnering with Kinderhook will provide Coleman with resources that will improve our business and enhance our ability to serve our valued customers,” commented Rich Godfrey, CEO of Coleman, “With Kinderhook’s support, we look forward to building scale, increasing our distribution capabilities, and exploring new avenues for future growth.”

“Rich has a demonstrated track record of success in the powersports category and has created an industry leader poised for significant growth. Our investment in Coleman reflects the core tenet of Kinderhook’s investment strategy – partnering with world class management teams to execute an aggressive growth strategy,” said Chris Michalik, Managing Director at Kinderhook.

“Rich and his team’s ability to build trusted relationships with leading retailers and provide exemplary customer service is unrivaled in the retail-focused powersports sector,” said Paul Cifelli, Managing Director at Kinderhook, “We are thrilled to add Coleman to the Kinderhook portfolio. We look forward to partnering with Rich and his team to aggressively expand Coleman’s product offering and distribution reach in the rapidly-growing powersports category.”

Kirkland & Ellis LLP served as legal counsel to Kinderhook. Financing for the transaction was provided by Twin Brook Capital Partners.

Hudson Capital Advisors served as financial advisor to Coleman and Burns & Levinson LLP served as legal counsel.