American Outdoor Brands to Acquire Grilla Grills

About this update from American Outdoor Brands, Inc.

[{"type":"text","content":"- Strategic Acquisition Expands AOB Portfolio Into Outdoor Cooking\n - Diversifies AOB and Drives Growth in Outdoor Lifestyle Category\n - Expands AOB Direct-to-Consumer Brand Offering\n - AOB Credit Facility to be Expanded by $25 million\n\n\nCOLUMBIA, Mo., March 10, 2022 /PRNewswire/ -- American Outdoor Brands, Inc. (NASDAQ Global Select: AOUT), an industry leading provider of products and accessories for rugged outdoor enthusiasts, today announced that it has entered into an agreement to acquire privately owned Grilla Grills (\"Grilla\"), a provider of high-quality, barbecue grills, Wi-Fi-enabled wood pellet grills, smokers, accessories, and modular outdoor kitchens for $27 million in cash, or approximately $24 million after factoring in the future tax benefit resulting from the asset purchase. The acquisition of Grilla will allow American Outdoor Brands to enter the estimated $7 billion, U.S. barbecue grill market with an authentic, direct-to-consumer brand that can benefit from the company's Dock & Unlock™ strategy and drive growth in the company's outdoor lifestyle product category.\n\n \n \n \n \n \n \n\n \nThe grill market has been growing, with an estimated 9 million grills sold in the U.S. each year, driven by recent trends toward outdoor cooking. Grilla, founded in 2015 by Dave Shidler, Owner & President, and Mark Graham, Engineering & Sales Manager, has generated net sales growth of over 161% in the past two years, with a compound annual growth rate of approximately 50% over the last five years, and calendar 2021 net sales of totaling over $15 million. The company has amassed a loyal consumer following, and its products are sold 100% direct-to-consumer on the company's website, and through two retail locations in Holland, Michigan and Dallas, Texas. \nBrian 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 q...

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