Northern Tool to Pay $215M for 2 Cos., Boost Sales to $1.5B
Northern Tool + Equipment announced Thursday that it has agreed to pay $215 million to acquire two vendors from France-based retail giant The PPR Group. The Burnsville-based company expects its annual sales to surpass the billion-dollar mark for the first time as a result of the acquisition.
The deal involves St. Paul-based The Sportsman’s Guide—a supplier of outdoor gear and equipment—and Wichita, Kansas-based golf equipment retailer The Golf Warehouse, both of which are part of PPR’s Redcats USA division. The two businesses will retain their names and continue to operate under their respective brands.
Northern Tool said that the acquisition, which is expected to close before the end of the year, will boost its annual sales to nearly $1.5 billion. The company’s sales totaled $925 million for the fiscal year that ended in July—up 5.1 percent from $880 million the previous year.
“We are very bullish about this milestone acquisition—it builds on our operational strength and synergies,” Northern Tool President Chuck Albrecht said in a statement. “Furthermore, we were drawn to both companies being family-run institutions with strong management. We look forward to building an even brighter future together.”
Northern Tool said that it doesn’t expect any job cuts as a result of the acquisition, as it plans to absorb all of the 600 Sportsman’s Guide employees and Golf Warehouse’s 250 employees. It also expects the deal to “eventually” create new jobs, but didn’t reveal how many or over what time period.
PPR—which owns such brands as Gucci, Puma, and Yves St. Laurent—said that the deal with Northern Tool provides both The Sportsman’s Guide and The Golf Warehouse with “interesting growth perspectives.”
Northern Tool sells tools and power equipment through catalogs, on its website, and at 80 retail stores located across the United States. The company is among Minnesota’s 25 largest private companies based on annual revenue and has roughly 2,200 employees.