Sun Mountain Sports: SOLD!

Sun Mountain Sports: SOLD! – Key Takeaways

• Sun Mountain Sports sold to Solace Capital Partners
• Terms undisclosed
• Sun Mountain management team to stay in place

Sun Mountain Sports has new ownership. Solace Capital Partners, a Los Angeles-based private investment firm, announced today that it has purchased Sun Mountain—lock, stock and pushcart—from Rick Reimers, the company’s founder, director and sole shareholder.

According to Solace, Sun Mountain will remain headquartered in Missoula, Mont. And it appears the existing management team will remain in place. In addition, Reimers will retain control of Sun Mountain Motor Sports, makers of the Finn golf scooter.

“I’m proud of the patents we have earned, the innovations we have ushered in and the lifelong friends I have made along the way,” said Reimers in a statement. “Solace brings a shared sense of values and deep appreciation of the brand and I am confident … the company’s best days are ahead.”

“Under Rick’s ownership, (Sun Mountain) has built a stellar reputation for excellence,” said Solace Managing Partner Brett Wyard. “We see attractive opportunities to grow the business and bring its wide range of products to as many golfers as possible.”

Sun Mountain Sports: History

Reimers, a former golf pro from California, has a long history as an innovator. He first dabbled in lightweight nylon golf bags in the late 1970s and established Sun Mountain in 1981 in San Jose, Calif. Three years later, he moved operations to Missoula and introduced unique lightweight golf bags such as the Front 9, his first big seller. In 1986, Sun Mountain released the Eclipse, which the company says was the first modern, lightweight stand bag.

By the ’90s, Sun Mountain extended its reach into rain gear and other golf-specific seasonal apparel. Along with Izzo, Sun Mountain was the first to introduce double straps on its golf bags. The company also introduced three-wheeled pushcarts in the ’90s and added the foldable Speed Cart in 1999. By 2010, Sun Mountain was the largest American maker of golf bags in the industry.

The company currently employs more than 200 people.

In 2019, Reimer introduced the Finn golf scooter and established Sun Mountain Motor Sports.

Who Is Solace?

We did find this oddly specific nugget in this morning’s press release announcing the sale:

“Solace Capital Partners is a Los Angeles-based private investment firm that provides flexible debt and equity solutions for established lower middle-market businesses. Solace seeks to leverage its extensive expertise to provide financial stability, lead operational improvements and drive performance growth.”

According to its website, Solace—as the name suggests—provides help for established businesses facing complex situations. The firm also looks to invest in sound companies with sustainable market positions, attractive assets and positive cash flow.

Therefore, today’s announcement should not be taken to mean Sun Mountain was in any financial trouble or seeking some sort of bailout. That doesn’t appear to be Solace’s style, especially since management at Sun Mountain will remain in place.

Given that Reimers is holding on to Finn, the sale likely falls into the category that Solace calls a “Special Situation Buyout.” That would indicate Solace felt Sun Mountain is a solid investment with potential. For Reimers, it would appear Solace made the right offer at the right time. It also appears Reimers will be using his new capital to focus on Finn so the most logical explanation is Reimers is cashing out on Sun Mountain and going all-in on Finn, a single-rider scooter Reimers believes will speed up the pace of play.

Currently, Finn scooters are part of rental fleets at more than 160 courses in 40 states in U.S. and in Canada.