Tuck-in acquisition strengthens strategic position of UTV Canada and MSD
January 23, 2024
Edmonton, Alberta — KV Capital’s Private Equity team is excited to announce the acquisition of UTV Canada Inc. (UTV Canada)—one of Canada’s top distributors and retailers of all-terrain vehicles (ATVs) and utility task vehicles (UTVs) parts and accessories. The deal will see UTV Canada merge with Mountain Sports Distribution (MSD), the full-service powersports distributor that joined the KV Capital Fund II portfolio in 2023.
“UTV Canada and MSD have a complementary relationship,” says Jonathan Herman, President of Private Equity at KV Capital. “In the powersports industry, we see three main pillars: snowmobiles, motorcycles, and UTVs. MSD has built a strong presence in snowmobiles and motorcycles, while UTV Canada specializes in UTVs. Both businesses have great talent and a strong desire to grow. Together, their strengths will let them bring a new level of service excellence to the entire powersports industry.”
The deal originated when UTV Canada’s CEO, Stacy Nehring, reached out to the MSD team after learning about the KV-MSD partnership.
“In the past, our team had discussed the possibility of a sale,” says Nehring, who retains equity and will join MSD as part of the partnership. “It is a tight knit industry, and when we heard about MSD working with KV, we wanted to ask MSD’s owners about their experience and the opportunity. What we heard from Chuck Gorton, MSD’s CEO, was very exciting and led us to today. This deal means my team and I can do more of what we love—helping off-road enthusiasts experience more—and less on administrative work and managing back-office systems.”
MSD CEO Chuck Gorton also welcomes the partnership. “We’re very excited to partner with the UTV Canada team, grow our dealer network and brand portfolio, and offer our customers even more,” he says. “Partnerships like this one are why we were eager to join KV.”
The acquisition will optimize strategic and operational excellence for both MSD and UTV Canada. The two teams will merge to share expertise and create efficiencies while retaining their individual brand identities in the market.
“Both MSD and UTV Canada’s dealers can expect improved access to more products with the same helpful staff and retail experience they know—but with more horsepower behind it,” says Herman. “This is a significant milestone in our journey to build Canada’s leading powersports platform through partnerships with strong powersports distributors and brands.”
Financial terms of the deal were not disclosed. For KV Capital, Bryan & Company LLP provided legal counsel. For UTV Canada, Swainson, Miki, Peskett LLP delivered legal services.
KV Capital Private Equity continues to actively seek new investment opportunities to expand its powersports platform by partnering with distributors and brands. The team expects to have more news to share soon.
About KV Capital
Founded in 2006 and based in Edmonton, Alberta, KV Capital is a Canadian, alternative investment fund manager with approximately $400 million in committed assets under management. KV Capital’s funds are split into a diverse range of asset classes including private operating businesses, real estate, and mortgages. KV Capital has been on the Profit 500 ranking of Canada’s fastest-growing companies for six consecutive years and has funded over $1 billion in investments across several different asset classes.
About MSD, Inc.
Established in 2009, Mountain Sports Distribution is one of Canada’s leading powersports parts and accessories distributors. Located in Golden, British Columbia, a recreation mecca, MSD distributes winter snowmobiling equipment and summer motorcycle equipment in Canada and USA. In 2020, 2021 and 2022 Mountain Sports Distribution was named one of Canada’s Top Growing Companies and in 2019 was recognized on Canada’s Growth 500 list.
About UTV Canada
UTV Canada is a family-run company that was built out of passion and commitment to the powersports lifestyle. It has served Canadian riders and motorsports dealerships for over 15 years.
From a humble start in a family garage in Edmonton, UTV Canada has grown into one of Canada’s most reputable distributors and online retailers of aftermarket UTV parts and accessories. Today it is the choice brand for hundreds of dealers across Canada.
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Inquiries
Vanessa Tracy-Roth
Marketing Manager, KV Capital
vanessa.tracy-roth@kvcapital.ca | 780.999.5727
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