Strategic Financing Fuels CSC Generation's Acquisition of Backcountry

Strategic Financing Fuels CSC Generation's Acquisition of Backcountry

In a significant development for the outdoor retail sector, Second Avenue Capital Partners and SB360 Capital Partners, along with Ares Commercial Finance, have successfully closed a $112,000,000 Senior Secured Revolving Credit Facility and Term Loan aimed at supporting Backcountry, a renowned premium specialty retailer of outdoor gear and apparel. This financial backing is crucial as it not only refinances an existing credit facility but also facilitates the acquisition of Backcountry by the venture-backed company, CSC Generation Enterprise.

Established in 1996, Backcountry began in Park City, Utah, founded by outdoor enthusiasts Jim Holland and John Bresee. Initially a modest online retailer focused on backcountry skiing products, the business has evolved tremendously over the years. Backcountry now offers an extensive range of outdoor gear and apparel, featuring both exclusive and prominent brand offerings including Columbia, Patagonia, and The North Face. This evolution reflects the growing demand for quality outdoor equipment among a diverse consumer base.

Backcountry's Evolution and Offerings

As a thriving entity, Backcountry has successfully diversified its product range beyond its own brand. They now feature notable partnerships with emerging brands such as Hoka and On Running. Today, Backcountry markets its products through multiple e-commerce platforms, including Backcountry itself, Steep & Cheap, Competitive Cyclist, and MotoSport, as well as on prominent third-party marketplaces like Amazon and eBay. Furthermore, the company operates nine retail locations across several states and the District of Columbia, solidifying its omni-channel presence in the outdoor gear market.

Partnerships Driving Success

Mark E. Gallivan, the Managing Director of Second Avenue Capital Partners, expressed enthusiasm about partnering once again with the CSC team for this transaction. Gallivan stated, "When they approached us regarding their acquisition of Backcountry, we eagerly accepted the opportunity to assist a sponsor with a successful track record in the specialty retail sector." Previously, CSC and Second Avenue Capital Partners successfully collaborated on CSC's acquisition of Sur La Table in 2020, solidifying a partnership that continues to flourish through various transactions.

Justin Yoshimura, CEO of CSC, echoed sentiments of optimism, noting, "Second Avenue Capital Partners has been our trusted source of financing for several years. This Backcountry deal exemplifies a significant opportunity to guide the business into its next chapter of success. With the excellent support from SACP and SB360, we can confidently execute our business plans while knowing our financial requirements are well managed." This synergy between CSC and its financing partners is integral to executing their growth strategy.

Second Avenue Capital Partners specializes in delivering customized financial solutions tailored to the retail and consumer products sectors. Their commitment to fostering sustainable growth places them as a preferred partner for businesses like Backcountry. Furthermore, SB360 Capital Partners, alongside Ares Commercial Finance, played key roles in structuring this comprehensive financial package, allowing flexibility in meeting Backcountry’s unique needs.

Key Insights from SB360 and Ares' Collaboration

Aaron Miller, President of SB360, highlighted the critical nature of their contributions, stating, "As affiliates of the Schottenstein organization, we bring extensive expertise in collateral financing. This enables us to tailor financial solutions uniquely suited to each client's circumstances. Collaborating with Ares Commercial Finance further enhances our capacity to meet the needs of Backcountry efficiently.” This partnership reflects a shared vision, contributing to a successful financing structure that addresses the strategic goals of the company.

Company Profiles and Market Impact

About Second Avenue Capital Partners, LLC - As a Schottenstein Affiliate, Second Avenue Capital Partners focuses on providing asset-based loans specifically targeted at the retail and consumer products sectors. Drawing on the experience of seasoned industry professionals, SACP offers tailored capital solutions that unlock hidden value within company assets. Their approach emphasizes collaboration in achieving financial milestones and strategic objectives.

About SB360 Capital Partners - SB360 stands as one of North America's foremost asset realization and merchant banking firms. The firm deploys equity capital to bolster growth opportunities and enhance liquidity for businesses during transitional periods, with its lending arm, Second Avenue Capital Partners, offering asset-based loans tailored for middle-market companies.

About Ares Commercial Finance - Part of Ares Management Corporation, Ares Commercial Finance specializes in providing credit facilities that extend up to $300 million to firms across various industries, including retail and consumer goods. Ares tailors its financial solutions to meet a wide range of client needs including refinancing, growth strategies, and acquisition financing.

About CSC Generation Enterprise - CSC Generation is revolutionizing the retail landscape with its AI-enhanced platform that effectively transforms traditional retailers into profitable digital-first businesses. Its portfolio includes various brands such as Backcountry and Sur La Table, positioning CSC as a dynamic player in the retail sector.

About Backcountry - With a longstanding reputation in the outdoor retail arena, Backcountry continues to set the standard for premium products and engaging customer service. It offers an extensive range of brands and specializes in high-performance gear, complemented by an experienced team dedicated to supporting customers with their outdoor adventures.

Frequently Asked Questions

What financing amount has CSC Generation secured for Backcountry?

CSC Generation has secured a total financing package of $112,000,000 to support the acquisition of Backcountry.

What is Backcountry known for?

Backcountry is recognized for its premium outdoor gear and apparel, and it offers a variety of products from both established and emerging brands.

Who are the main partners involved in this acquisition?

The key partners include Second Avenue Capital Partners, SB360 Capital Partners, and Ares Commercial Finance.

What was the initial focus of Backcountry when it was founded?

Backcountry initially focused on backcountry skiing gear, beginning as a small online shop that sold essential safety equipment.

How does Second Avenue Capital Partners support businesses?

Second Avenue Capital Partners provides customized financial solutions tailored to the needs of businesses in the retail and consumer product sectors, enabling sustainable growth.

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