Lovers of outdoor sports, camping, hiking and mountaineering probably know something about the company Sea to Summit. This project of Australian origin focuses on the sale of products related to outdoor sports and has more than twenty-five years of experience behind it.
And although their track record was very good, in the last few days they have announced that they have made the decision to sell the majority of their shares to another larger Australian company called Five V Capital. This is a private equity firm, which in addition to operating in Australia, also operates in New Zealand and in other countries further afield, such as the United States. Although different personalities related to Sea To Summit have spoken on the subject, it has not been revealed what economic movements have been carried out in the sale.
What could be the reasons why Five V Capital may be interested in acquiring Sea To Summit? This is a doubt that has arisen after its announcement, in the same way that many wonder why Sea to Summit has decided to carry out this sale with the good trajectory they had, even after the two years of pandemic. Let’s shed some light on this whole issue, and tell you what we know about the sale and how it will affect consumers.
How has Sea to Summit grown over the past few years?
The sale of Sea to Summit to a larger company has surprised many people. All those accustomed to purchasing the products of this outdoor sports brand have wondered if things were really going badly, or if it was an unrelated decision that has a coherent explanation.
And it does, because in the words of Sea to Summit’s general manager in North America, the brand has been on a very steep growth curve for a whole decade, and not just within Australia but internationally. This has a lot of merit considering the enormous amount of change over the last ten years, and especially in the last two.
However, the pandemic was not all bad for Sea to Summit’s sales. We have told you on previous occasions how everything related to outdoor sports had skyrocketed when it started to become difficult to make trips of all kinds. The big fans of camping, hiking and mountains were already doing it, but to them were added many other users who were looking for a leisure where there were no large crowds, and that also did not go against the restrictions that there were in virtually all countries of the world.
In fact, in 2020 Sea to Summit managed to acquire its own distribution rights in North America, a country in which it had been working for more than twenty years. This was excellent news, and made them design a series of plans to continue its extension and sales for the next five years.
So why have the shares been sold to another company in the last few days? Precisely because the founders of Sea to Summit have come to the conclusion that they have taken their project to the maximum height that is possible without external funding, and in order for it to continue to grow internationally, they need the support of a company like Five V Capital, which will only bring more and more benefits.
Reasons why Five V Capital has decided to acquire the shares of Sea to Summit
Now that you know why Sea to Summit’s management has decided to sell the vast majority of its shares to another company, you may be interested in the reasons why a company as large as Five V Capital may want to acquire these shares.
But the reasons are very obvious! Besides the fact that Sea to Summit’s track record was going very well, and they had managed to carve a respected niche in the market, even internationally, in all their years of career, there are other reasons:
Those of you who are fans of the outdoor sports world will know that there are many brands that are specialized. That is, brands that are dedicated to professional mountain sports, for example, and have technical equipment that is enormously useful, but not for everyone. There are people who simply want to go up for a day and spend a few pleasant hours in the mountains.
In that sense, Sea to Summit is a brand that has managed to diversify its products and make them for everyone. It is an accessible brand, suitable for everyone and also for different outdoor sports activities. And it has always been known for its affordable prices. This means that, perhaps, if a person does not want to invest a lot of money in technical equipment because they are only going to use it during their vacations once a year, they can turn to a more generalist and economical brand and have the sports products they want.
In short, Sea to Summit is a very profitable project, and it looks like it will continue to grow over the next few years. Now that a company with larger capital has decided to buy the vast majority of its shares, we are likely to see broader movements when it comes to deciding where sales are going to take place and what the channels are going to be like for these sales to take place.
Is this going to affect the user when purchasing Sea to Summit products?
As you can probably imagine, the news is too recent for us to know how it will affect everyone in the coming months. It is not yet known what decisions the people at Five V Capital are going to make when it comes to implementing Sea to Summit’s strategies.
But, in principle, the idea is that they will continue to operate as at this time, simply with the fact that they will probably start to expand into other countries during the next year, now that they have more capital. We will keep an eye out for any movement or news they give in this regard, and of course we will inform you about it.
Thank you very much for reading us, and if you have any doubt, you can write us without any problem! Also stay tuned to the news and articles of our blog, where we permanently talk about this kind of news about economic movements in the world of sports.