Target Information

Kimsports CC, headquartered in Knysna, South Africa, is a leading supplier of field hockey equipment in the country. Established 29 years ago by Shane Schonegevel, the business originated from a family sports retail store. Kimsports has developed a robust portfolio by importing and selling internationally recognized hockey brands including Gryphon, OBO, Adidas, JDH, and Voodoo. With a multi-channel sales approach, the company caters to a diverse clientele through wholesale distribution, direct sales to schools and clubs, and a growing e-commerce platform at planethockey.co.za.

Industry Overview in South Africa

The field hockey market in South Africa is experiencing a significant evolution, influenced by a growing interest in sports and active participation at regional levels. The country boasts a rich history in field hockey, producing numerous talented athletes who compete at both national and international levels. This increased attention has led to a rising demand for high-quality equipment, fostering opportunities for suppliers to capture market share.

In recent years, the South African government and various sporting bodies have undertaken initiatives to promote field hockey, enhancing the sport's visibility and engagement. Coupled with this is a favorable demographic landscape, where schools and universities are actively encouraging participation in sports, making it a pivotal time for businesses to invest in this industry.

The presence of established brands like Gryphon and OBO enhances competition within this sector, positioning suppliers like Kimsports to leverage brand recognition and consumer loyalty. The growing e-commerce segment further supports market expansion, allowing suppliers to reach a broader customer base efficiently.

Rationale Behind the Deal

The acquisition of Kimsports CC by Longstreth Sporting Goods represents a strategic move to enhance Longstreth's presence in the international field hockey market. By integrating Kimsports, Longstreth gains access to South Africa's growing hockey equipment market, complementing its existing operations in the United States and Australia.

Both companies share a commitment to providing premium equipment and exceptional customer service to athletes. This alignment in mission and vision is expected to foster collaboration and the sharing of best practices, ultimately leading to improved operational efficiency and enhanced service offerings for customers across all markets.

Information About the Investor

Longstreth Sporting Goods is a preeminent supplier of field hockey equipment in the United States, established over 40 years ago with a focus on supporting women’s sports. The company has built a strong reputation through its comprehensive product offerings and superior customer service. Longstreth operates both a vibrant e-commerce site and a physical retail location, while also participating in wholesale distribution to various educational institutions and retailers.

Supported by Roebling Capital Partners, a private equity fund specializing in lower middle-market investments, Longstreth has been actively pursuing strategic partnerships and acquisitions. Their commitment to expanding operations both domestically and internationally positions them favorably in the field hockey marketplace.

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The integration of Kimsports CC into Longstreth Sporting Goods appears to be a strong investment decision, given the company's proven track record and market position in South Africa. This acquisition not only enables Longstreth to capitalize on a growing market but also strengthens its brand portfolio by providing additional channels for distribution through Kimsports' established networks.

The synergy between the two firms, rooted in shared values and operational similarities, paves the way for knowledge transfer and innovation in product offerings. As both companies continue to represent leading brands within their respective markets, their partnership is poised to enhance their competitive edge.

Moreover, by expanding its footprint into South Africa, Longstreth diversifies its revenue streams and mitigates risks associated with market fluctuations in any single region. As the sport of field hockey continues to gain traction, this strategic expansion could yield significant returns on investment.

Overall, the combination of Longstreth's strong capital backing and Kimsports' established presence in South Africa makes this acquisition a promising venture that could lead to sustained growth and market leadership in the international field hockey space.

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