Ronin Funds Woodmaxx Acquisition - Rebrands to Engenuity Outdoor Equipment.

March 20, 2024 - Operationally-focused buyout group Ronin Equity Partners has funded through a $25 million term-loan facilitating the purchase of Woodmaxx by the market-leading outdoor equipment company, DK2. The transaction adds annually $20 million in Woodmaxx revenues and some $5 million in synergies. As part of the deal, DK2 (formed 20 months ago through Ronin’s purchase and simultaneous merger of three companies) is being renamed Engenuity Outdoor Equipment. Ronin set up the term loan facility for the purchase of Woodmaxx when Engenuity was formed from the merger of DK2, Snowbear - both based in Ontario, Canada - and Mount Airy, Georgia-based Currahee Trailers.

Since its founding in 2010, Akron, New York-based Woodmaxx has built a loyal customer base attracted by quality engineering and a value-for-money ethos. “This latest transaction creates an extraordinarily diversified outdoor equipment business in sales channels and product offerings,” says Ronin Partner and Engenuity Chief Financial Officer, Tiffany Bell. “We’ll expand Woodmaxx’s reach into traditional retail channels and dealers, while bringing its engineering and product development expertise to DK2,” says Kurt Schie, President and founder of Woodmaxx. “Combined, we’ll deliver more value to customers and build an even broader range of innovative products.” Schie and fellow Woodmaxx owners are reinvesting a substantial portion of their proceeds from the sale into a double- digit minority stake in Engenuity.

Woodmaxx expands DK2’s offering, centered on products with embedded engines, by adding power take-off
equipment – more robust machinery highly appealing to professionals - powered by a connected energy source, typically tractors or skid steers. The acquired company’s products, currently sold through online and phone-based direct-to-consumer channels, will also be offered through DK2’s retail network (and visa-versa for DK2 equipment).Woodmaxx products and its substantial domestic manufacturing diversify Engenuity’s supply chain, reducing dependence on outsourced manufacturers, while adding procurement cost synergies.

“This is a match made in heaven,” says Doug Robinson, Chairman and CEO of Engenuity, and former President of International Operations & Development at Lowe’s Companies. “With the team at Woodmaxx, we’re getting some of the industry’s best talent in product engineering, domestic manufacturing capabilities, and customer service.”

The combined group is expected to achieve long-term revenues in excess of $100 million, including cross-selling opportunities and synergies. Engenuity is a leading North American outdoor equipment player, selling a wide range of woodchippers, snowplows, winches, auto accessories and trailers. Its core customers are individual landowners taking on do-it-yourself projects (known as “prosumers”) and small to medium-sized professional landscapers, ranchers and farmers.

Since 2021, when it began investing, Ronin has deployed over $350 million, including reserves for follow-on
investment. This covers five platform investments, comprising 23 companies. Ronin and Engenuity management have identified more than 35 complementary outdoor equipment businesses and expect further acquisitions.

Katten Muchin Rosenman acted as legal advisors on Woodmaxx; buyside M&A advisors were Harvey & Company; and debt was provided by a syndicate led by RBC, HSBC, National Bank of Canada and Desjardin.