BSN Sports is a leading distributor of team uniforms and sporting goods in the United States.

www.bsnsports.com

Investment

C$57 million

Fund

ONCAP II

Period

August 2010 – June 2013

ONCAP Team

Mark Gordon
Ryan Mashinter
Wole James

BSN Sports image

Transaction Summary

ONCAP alongside management and a large existing shareholder acquired the majority of BSN Sports (“BSN”) in a going-private management buyout in August 2010.

Business Description

At the time of ONCAP’s investment, BSN was the largest multi-channel direct marketer, manufacturer and distributor of sporting goods, athletic equipment, footwear products and team uniforms in the U.S. BSN served more than 110,000 institutional customers throughout the U.S. including schools, camps, youth sports programs and colleges through its vast network of national catalogs, websites, road sales and telesales professionals. The company distributed proprietary products that it either sourced or manufactured under its own brands including MacGregor and Voit, and also re-distributed products on behalf of third-party vendors such as Nike, Adidas, Under Armour, Wilson and Riddell.

Accomplishment and Outcome

The institutional team sports marketplace continued to seek solutions to simplify and consolidate the acquisition of uniforms and equipment to support athletic programs while reducing the time, resources and cost associated with ordering these products. ONCAP believed BSN was well-positioned to continue to gain market share due to its national catalog offerings, merchandising and direct distribution capabilities, direct sales force, extensive product offerings, longer-term customer relationships, proprietary products and product sourcing expertise. ONCAP believed that several opportunities existed to grow and enhance BSN through the introduction of new sales tool technology, new proprietary product lines, sales force and catalog expansion, improvement of e-commerce capabilities, expansion into under-penetrated sales channels and expansion into new sports and regions both organically and through accretive acquisitions.

BSN experienced substantial growth in sales and profitability as a result of the technology and operational improvements executed under ONCAP’s ownership and the successful completion of nine accretive acquisitions. In June 2013, a strategic buyer purchased BSN. ONCAP achieved a 4.5x gross multiple of its capital invested, representing a 67.6% gross IRR over the three-year investment period.