A discussion draft of the Online Sales Tax Simplification Act of 2016 is expected to be introduced in Congress soon.
In a move to expand its web and catalog channels, outdoor gear retailer Gander Mountain Co. is acquiring Overton’s Inc. Gander Mountain will pay approximately $70 million in cash for the company.
In a move that will expand its direct marketing channel, outdoor gear retailer Gander Mountain Co. is acquiring Overton’s Inc. from Linsalata Capital Partners, a Cleveland-based private equity firm.
Gander Mountain will pay approximately $70 million in cash for the company. Gander Mountain will finance the deal for Overton’s, No. 447 in the Internet Retailer Top 500 Guide, by issuing $24 million in Gander Mountain common stock at a purchase price of $5.90 per share, a $40 million term loan from Bank of America and borrowings under its revolving credit facility.
Overton`s will continue to operate under its own brand name and as a wholly owned subsidiary of Gander Mountain. "The acquisition of Overton`s enables Gander Mountain to greatly accelerate our strategy to be an integrated, multi-channel retailer featuring Internet, catalogs and retail stores," says Gander Mountain CEO Mark Baker. "Overton`s is a unique opportunity for Gander Mountain, providing an excellent management team, a proven platform and infrastructure, and the capacity to handle substantial additional volume with minimal incremental investment."
Overton’s is a direct marketer and web retailer of specialty water sports and related marine accessories. The company, which operates online at Overtons.com and publishes 15 catalogs, has annual revenue of more than $90 million.
Overton’s operates its own customer service and fulfillment center in Greenville, NC. “We believe we can significantly contribute to the growth of Gander Mountain`s Internet and catalog efforts,” says Overton’s CEO Mark Metcalfe.
Gander Mountain is moving aggressively to build up its web and catalog channel. In July, the United States District Court of Minnesota granted Gander Mountain the rights to the Gander Mountain name and certain trademarks in direct marketing that have been contested since Cabela’s Inc. bought Gander Mountain’s catalog business in 1996.