Kona Bicycles, Advised By Bell Lap Advisors, Acquired By Kent Outdoors

Date

January 2022

Client

Kona Bicycles

Service

Sell-Side M&A Advisory

Buyer

Kent Outdoors, a portfolio company of Seawall Capital

Cycling, Mountain Biking, Wholesale, Independent Bike Shops, DTC, Outdoor Recreation

Washington-based Kona Bicycles was acquired by Kent Outdoors, a portfolio company of Seawall Capital. Terms of the transaction were not disclosed, other than to confirm that Kona founders Dan Gerhard, Jake Heilbron, and Jimbo Holmstrom will remain at the company "in their familiar roles".

Kona Bicycles, which was originally founded in Vancouver, B.C. in 1988, is known for their innovative mountain bike designs. Kona is considered the first brand to produce a line of sloping top tube designs.

Kona co-founder Heilbron said of the transaction, "Our partnership with Kent Outdoors signals our renewed commitment to competing in a rapidly evolving industry. We are more dedicated than ever to building great bikes, partnering with our independent bike dealers, and maintaining the Kona Way. In fact, Kent’s investment will enable Kona to invest more meaningfully behind these goals to better serve our independent retailers, team members, and consumers worldwide. By partnering with Kent, we’ll give more people the freedom and empowerment of getting outdoors on Kona bikes"

Kent Outdoors, which was previously known as Kent Water Sports, owns a portfolio of 15 brands across watersports, outdoors and snowboarding. While Kona is its first mountain bike brand, it does have a mountain bike connection through its CEO Ken Meidell, who was previously CEO at Outerbike.

Meidell drew on his past experience as a cyclist and CEO of a cycling firm as inspiration for taking Kona to new heights, saying, “I've been riding mountain bikes since the days of coaster brakes. I started with fully rigid forays into the forests where I grew up and the stoke never really left. It's safe to say it's in my blood. Working with Kona fulfills a dream of mine, and I can't wait to help bring more iconic bikes to cyclists all over the world." Meidell becomes the new CEO of Kona as part of the acquisition.

Kent is itself a portfolio company of Seawall Capital, LLC, a Private Equity firm whose other portfolio companies include Sports Endeavors and BOTE, among others.

Bell Lap Advisors, which advised Kona on the sell-side, is a leading M&A advisory firm focused exclusively on outdoor recreation and active lifestyle industries. Bell Lap Advisors is the most experienced M&A adviser for the cycling industry, globally, completing more deals in the cycling industry each year than any other firm, including bike brands, eBike brands, apparel, footwear, components, parts and accessories, with buyers and sellers located in the USA, Canada, Netherlands, France, United Kingdom, Taiwan, and Hong Kong.

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