I noticed a press release posted yesterday on the Ellett Brothers dealer page saying that United Sporting Companies (Ellett) is acquiring Acusport’s distribution warehouses & inventory in Bellefontaine, Ohio, and Salt Lake City, Utah. They are also getting the offices in Waite Park, Minnesota. This is a bankruptcy proceeding, so apparently the lack of anticipated panic-buying from the assumption that Clinton would win the election did not pan out well for Acusport at all.
What this means is that the firearms, ammo, and shooting/hunting accessories distributor Ellett Brothers is about to grow in size by around 30%, making them an even more serious threat and more relevant market presence to other distribution competitors such as Sports South, Crow Shooting, Gulf Coast, Bangers, Davidson’s, J&S, MGE, etc… and all of the buying groups. They will also be better positioned to compete with the ever-growing list of quasi-distributors who are direct-to-retail online entities such as TargetSports USA, MidwayUSA, Outdoor Limited, SG ammo, and Wholesale Hunter.
Here is the transcript:
• May 1, 2018
United Sporting Companies Announces Intent to Purchase Certain Assets of AcuSport Corporation.
United Sporting Companies announces its intent to acquire, through its wholly-owned subsidiary Ellett Brothers, LLC, certain assets of AcuSport Corporation as the stalking horse bidder in a bankruptcy case filed by AcuSport.
USC intends to acquire and operate AcuSport’s distribution center and related systems in Bellefontaine, Ohio and will assume the leases for the satellite distribution center in Salt Lake City, Utah and its Waite Park, Minnesota sales office. USC expects to offer employment to a significant number of AcuSport employees at the time of closing. USC has also offered to buy any remaining inventory from AcuSport’s creditors.
As this is an asset purchase, USC will not assume any of the existing debts to creditors or vendors. Those debts remain with AcuSport and will be dealt with via the bankruptcy case.
“United Sporting Companies is pleased to be acquiring the state of the art distribution capabilities of AcuSport and to provide employment to a significant number of its employees. We believe this purchase will allow us to combine the best of AcuSport and United Sporting Companies to create the industry’s leading shooting sports distribution company,” said Brad Johnson, CEO of United Sporting Companies.
With the acquisition of the Ohio distribution center, USC will look to consolidate some of its distribution assets with the former AcuSport facility. Specifically, USC’s Simmons distribution facility in Spring Hill, Kansas will be transitioned into the existing USC network by the end of July 2018.
The asset acquisition is expected to close by July 6, 2018.
United Sporting Companies (USC) is a leading nationwide distributor of hunting, outdoor and marine products. The company operates through two subsidiaries, Ellett Brothers and Jerry’s Sport Center which were founded in 1933 and 1949, respectively. Providing the Industry’s largest product selection of over 85,000 SKUs in combination with the endless support of the most knowledgeable sales force in the country, USC proudly and efficiently serves over 30,000 independent retail customers across all 50 states through sales offices and distribution centers in Chapin, SC, Newberry, SC, Pittston, PA, Downingtown, PA, Dayton, OH, Spring Hill, KS, Dallas, TX, and Sacramento, CA.
McDermott Will & Emery is acting as legal counsel, and Houlihan Lokey Capital, Inc. is serving as financial advisor, to United Sporting Companies and Bryan Cave Leighton Paisner LLP and Allen Kuehnle Stovall & Neuman LLP are serving as legal counsel, Huron Consulting Group LLP is serving as financial advisor, and Huron Transaction Advisory LLP is serving as investment banker, to AcuSport Corporation.