Strategic Financing Drives CSC Generation's Acquisition of Backcountry
In a major advancement for the outdoor retail industry, Second Avenue Capital Partners, SB360 Capital Partners, and Ares Commercial Finance have successfully finalized a $112,000,000 Senior Secured Revolving Credit Facility and Term Loan. This funding is critical as it not only refinances an existing credit line but also supports CSC Generation Enterprise's acquisition of Backcountry, a well-known premium specialty retailer in outdoor gear and apparel.
Founded in 1996 by outdoor enthusiasts Jim Holland and John Bresee in Park City, Utah, Backcountry started as a small online retailer focused primarily on backcountry skiing products. Over the years, the company has undergone impressive growth. Now, Backcountry offers a wide array of outdoor gear and apparel, showcasing both exclusive and well-known brands like Columbia, Patagonia, and The North Face. This shift reflects the increasing demand for high-quality outdoor equipment among a broad spectrum of consumers.
The Expansion and Offerings of Backcountry
Backcountry has thrived by diversifying its product offerings beyond its own brand. It has established significant partnerships with emerging brands such as Hoka and On Running. Now, Backcountry sells its products through various e-commerce platforms, including its own site, Steep & Cheap, Competitive Cyclist, and MotoSport, as well as major third-party marketplaces such as Amazon and eBay. Additionally, the company boasts nine retail locations across several states and the District of Columbia, reinforcing its presence in the outdoor gear market across multiple channels.
Partnerships That Fuel Success
Mark E. Gallivan, Managing Director of Second Avenue Capital Partners, expressed excitement about collaborating once again with CSC for this transaction. He mentioned, “When they approached us about acquiring Backcountry, we were eager to support a sponsor with a proven track record in specialty retail.” Gallivan noted that this partnership builds on their previous success with CSC's acquisition of Sur La Table in 2020, showcasing a relationship that continues to thrive through various endeavors.
Justin Yoshimura, CEO of CSC, shared his positive outlook, stating, “Second Avenue Capital Partners has been our reliable financing partner for several years. This Backcountry deal presents a major opportunity to lead the business into its next successful chapter. With the strong support from SACP and SB360, we're well-equipped to implement our business strategies while ensuring our financial needs are met.” This collaboration between CSC and its financial partners is crucial for executing their growth strategy effectively.
Second Avenue Capital Partners specializes in offering tailored financial solutions geared toward the retail and consumer products sectors. Their dedication to promoting sustainable growth makes them a preferred partner for companies like Backcountry. Additionally, SB360 Capital Partners, in collaboration with Ares Commercial Finance, played essential roles in crafting this extensive financial package that allows for flexibility in addressing Backcountry's specific needs.
Insights from SB360 and Ares' Collaboration
Aaron Miller, President of SB360, emphasized the importance of their contributions, stating, “As affiliates of the Schottenstein organization, our extensive experience in collateral financing allows us to customize financial solutions tailored to each client's situation. Partnering with Ares Commercial Finance significantly boosts our ability to meet Backcountry's needs efficiently.” This collaboration illustrates a shared vision that has led to a successful financing structure that aligns with the firm's strategic goals.
Company Profiles and Market Implications
About Second Avenue Capital Partners, LLC - As an affiliate of Schottenstein, Second Avenue Capital Partners emphasizes providing asset-based loans specifically aimed at the retail and consumer products sectors. Drawing from the expertise of seasoned industry veterans, SACP delivers customized capital solutions that reveal hidden value within company assets, reinforcing their commitment to achieving strategic financial milestones.
About SB360 Capital Partners - Recognized as one of North America's leading asset realization and merchant banking firms, SB360 utilizes equity capital to support growth opportunities and enhance liquidity for businesses in transitional phases. Its lending arm, Second Avenue Capital Partners, provides asset-based loans designed to meet the needs of middle-market companies.
About Ares Commercial Finance - As part of Ares Management Corporation, Ares Commercial Finance specializes in offering credit facilities of up to $300 million to businesses across various sectors, including retail and consumer goods. They adapt their financial solutions to accommodate a wide range of client needs such as refinancing, growth initiatives, and acquisition financing.
About CSC Generation Enterprise - CSC Generation is reshaping the retail environment through its AI-powered platform that transforms traditional retailers into successful digital-first enterprises. Their diverse portfolio includes various brands, such as Backcountry and Sur La Table, marking CSC as a vibrant player in the retail landscape.
About Backcountry - With a well-established reputation in the outdoor retail space, Backcountry consistently sets the benchmark for premium products and outstanding customer service. They offer an extensive selection of brands and specialize in high-performance gear, backed by a knowledgeable team committed to assisting customers with their outdoor pursuits.
Frequently Asked Questions
What is the total financing amount secured by CSC Generation for Backcountry?
CSC Generation has acquired a financing package of $112,000,000 to facilitate the acquisition of Backcountry.
What is Backcountry particularly known for?
Backcountry is well-known for its premium outdoor gear and apparel, featuring a wide variety of products from established and emerging brands.
Who are the primary partners involved in this acquisition?
The main partners in this acquisition include Second Avenue Capital Partners, SB360 Capital Partners, and Ares Commercial Finance.
What was Backcountry's original focus when it was founded?
When founded, Backcountry concentrated on backcountry skiing gear, starting as a small online shop specializing in essential safety items.
How does Second Avenue Capital Partners assist businesses?
Second Avenue Capital Partners provides tailored financial solutions designed to meet the unique needs of businesses in the retail and consumer products sectors, fostering sustainable growth.
