American Outdoor Brands, an industry leading provider of products and accessories for rugged outdoor enthusiasts, forged an agreement to purchase Grilla Grills, a privately owned provider of barbecue grills, Wi-Fi-enabled wood pellet grills, smokers, accessories and modular outdoor kitchens.
The transaction amounted to $27 million in cash, or approximately $24 million after factoring in future tax benefit resulting from the asset purchase.
The acquisition will allow American Outdoor Brands to enter the estimated $7 billion U.S. barbecue grill market, giving it an authentic, direct-to-consumer brand that can benefit from the company’s Dock & Unlock strategy and drive growth in the outdoor lifestyle product category.
Grilla was founded in 2015 by Dave Shidler, Owner & President, and Mark Graham, Engineering & Sales Manager, and has generated what American Outdoor Brands called net sales growth of over 161 percent in the past two years, with a compound annual growth rate of approximately 50 percent over the last five years, and calendar 2021 net sales of totaling over $15 million. The company’s products are sold 100 percent direct-to-consumer on the company’s website, and through two retail locations in Holland, Michigan and Dallas, Texas.
Brian Murphy, President and CEO of American Outdoor Brands, said, “Expanding our outdoor lifestyle category is an important component of our long-term strategic plan, and today, we are excited to welcome Grilla Grills into the American Outdoor family of brands. We have carefully searched for acquisitions that are a fit for our brand lane structure, have plenty of runway for future growth, and allow us to leverage the investments we have made in our e-commerce platform by bringing complementary products and consumers into our brand portfolio. Through its commitment to quality, innovation, and its customers, Grilla has developed a highly respected and authentic brand that aligns well with our core values, and is a perfect fit within our outdoor lifestyle brand offering. We look forward to leveraging our Dock & Unlock strategy to take Grilla to the next level by further expanding its innovative and high-quality product line, broadening its loyal consumer base, and delivering sustainable future growth.”
American Outdoor Brands negotiated directly with the seller on the transaction, which will be structured as an asset acquisition, and is expected to be immediately accretive to American Outdoor Brands net sales and non-GAAP net income. The transaction is expected to be completed in the coming days, following the satisfaction of customary closing conditions.
