Ski Area Management has reported that Kohlberg & Co., L.L.C. purchased Newell Brands Inc.’s winter sports portfolio which includes K2, Volkl, Marker, Dalbello, Line, Full Tilt, Ride, Madshus, Atlas, Tubbs and BCA, for $240 million. Kohlberg is a private equity firm specializing in add-on acquisitions, follow-on acquisitions, expansions, turnarounds, corporate carve-out, public-to-private transactions, and equity and debt investments in buyouts of mature and middle market companies. It does not invest in companies operating in the technology and emerging telecommunication sectors. The firm primarily invests in both stable and under performing companies with operational deficiencies. It seeks to invest in companies operating in the traditional manufacturing and services sectors with a focus on consumer product, industrial manufacturing, financial services, healthcare services, commercial services etc. The portfolio recorded net sales of about $330 million in 2016 and an annual adjusted EBITDA of $25 million. Kohlberg’s size and resources should should serve these companies well going forward.
Mountain Creek, which operates a ski resort and water and action park, filed for chapter 11 protection today in the Bankruptcy Court for the District of New Jersey. The petition filed to initiate the case lists $10 million to $50 million in both assets and liabilities. Much like the Wisp ski resort and Greek Peak resort filings of the past, the company blames the filing on a lack of liquidity based due to a combination of warmer winter temperatures, litigation, and the lingering impact from the residential real estate crisis. The company intends to “gain access to additional capital and liquidity necessary to continue to upgrade the Resort and its facilities, restructure its balance sheet and negotiate the terms of a plan of reorganization.” The filing lists approximately $2.6 million in trade debt plus $40 million in unsecured loans, and $29 million in secured debt.