Mervin Manufacturing, the Sequim, Washington-based producer of snowboards, skis and surfboards, announced Thursday afternoon that it has been acquired by Spring Capital Group, an Oregon-based private investment firm.
The deal preserves Mervin’s U.S. manufacturing operations, recognized as the longest-running snowboard factory in America, and keeps the company’s existing leadership team in place.
Mervin is the maker of Lib Tech, GNU and Bent Metal, among other brands. Spring Capital Group, based in Eugene, Oregon, holds a diverse portfolio of companies including BlackStrap, UBCO Electric Bikes, New Seasons Market and Elmer’s Restaurants, among others.
SESO spoke with Anthony DeRocco, CEO of Mervin Manufacturing, about what the acquisition means for the company, its brands and its plans going forward.
What do you anticipate changing, and what do you think will stay the same with having a new owner?
Mervin Manufacturing CEO Anthony DeRocco: Spring Capital Group is excited about our current team, which is very experienced — most members of the executive team have 20 to 30-plus years of experience in action sports. They want to support us in any manner to help us continue to be successful.
Why is Spring Capital a good fit for Mervin Manufacturing?
Anthony DeRocco: It is a private company that loves the fact that we are Northwest-based and have U.S.-based design and manufacturing.
Private equity buys brands to grow them. Where do you see growth coming from in the future for Mervin?
Anthony DeRocco: To be clear, Spring Capital Group is not a private equity company but rather a private investment group started by two brothers and a partner who are still in the business. They play the long game and are here to support our plans.
Over the course of the last five years, we have set up the factory to have added capacity for snow and surf, and we have repositioned both Lib Tech and GNU to be competitive in all price points in the snowboard market, which was not the case three years ago. This will drive growth as the snow market returns to what I hope are more standard global winters.
The factory also has a strong history of being a top-notch composite molding facility, and we will continue to look at other opportunities whether within the snow and surf arena or outside.
How did the tough winter impact Mervin? I know heading into the winter you were hopeful since the company was able to keep prices steady while competitors were raising prices due to tariffs.Â
Anthony DeRocco: Clearly not an ideal winter, with the Rockies to the Pacific having one of the most challenging snowpacks in the last 50 years. When you are in this business you just need to be nimble and deal with what Mother Nature throws at us.
Having our own factory does allow us to react quickly, and we are in a stable position and look forward to continued success.
Are you excited to have a resolution to the sale process? I know it’s been something you’ve had to deal with for a while now, and I’m guessing it has been very time-consuming for you.
Anthony DeRocco: No question — the entire team is ready to move forward, and yes, it can be a very time-consuming endeavor.
Spring Capital Group was incredible throughout the buy process, and we were all impressed with not only their thorough review but, as important, their attitude and communication style.
