Northern Tool + Equipment Enters Agreement To Acquire The Sportsman’s Guide and The Golf Warehouse

  Northern Tool + Equipment Enters Agreement To Acquire The Sportsman’s Guide
  and The Golf Warehouse

  Acquisition to make Northern Tool + Equipment a nearly $1.5 billion dollar
                                   company

Business Wire

BURNSVILLE, Minn -- November 08, 2012

Northern Tool + Equipment, a leading supplier of high-quality tools and
equipment founded and owned by the Kotula family, today announced it has
agreed to acquire The Sportsman’s Guide and The Golf Warehouse from Redcats
USA, a division of French company PPR, for $215 million.

Pending regulatory approval, the deal will transform Northern Tool + Equipment
into a company nearing $1.5 billion in sales.

The Sportsman’s Guide is a South St. Paul, Minn.-based supplier of top-quality
outdoor goods sold via catalogs as well as SportsmansGuide.com,
BoatingSavings.com and WorkWearSavings.com. The Golf Warehouse is a Wichita,
Kan.-based online golf equipment retailer. Both companies will continue to
operate as stand-alone brands to take advantage of their considerable brand
equity.

Northern Tool + Equipment expects to seamlessly integrate The Sportsman’s
Guide and The Golf Warehouse into its current operations, taking advantage of
ample economies of scale. Moreover, all the brands share a common target
customer that Northern Tool + Equipment has marketed to very effectively for
more than 30 years.

No job cuts are expected as a result of the acquisition. Northern Tool +
Equipment anticipates eventually adding new jobs as a result of a successful
melding of the businesses.

“We are very bullish about this milestone acquisition – it builds on our
operational strength and synergies,” said Chuck Albrecht, president, Northern
Tool + Equipment. “Furthermore, we were drawn to both companies being
family-run institutions with strong management. We look forward to building an
even brighter future together.”

Houlihan Lokey advised on the acquisition process. J.P. Morgan Securities LLC
is arranging the financing for the transaction.

About Northern Tool + Equipment

Northern Tool + Equipment has been a supplier of high-quality tools and
equipment founded and owned by the Kotula family for more than 30 years,
selling products through direct mail, the Internet and at 80 retail locations
in 16 states, including Florida, Georgia, North Carolina, South Carolina,
Virginia, Tennessee, Texas, Minnesota, Wisconsin, Iowa, Kansas, Oklahoma,
North Dakota, South Dakota, Nebraska and Mississippi. Along with a deep
selection of hand, power and air tools, Northern Tool + Equipment carries a
wide variety of products, including generators, pressure washers, air
compressors, hydraulics, small engines, trailers, water pumps, tractors,
welding equipment and much more. Northern Tool + Equipment also serves as the
exclusive distributor of NorthStar brand equipment, which is fabricated and
assembled at the company’s 250,000-sq.-ft. manufacturing facility located in
Faribault, Minn. Northern Tool + Equipment’s corporate headquarters are
located in Burnsville, Minn. For more information, visit www.NorthernTool.com.

Contact:

One Simple Plan
John Feld, 612-677-2248
 
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