Outdoor Recreation Market Update – April 2026

Emerging Hot Spots Buoy Dealmaking Activity in the Outdoor Recreation Market

The Outdoor Recreation market sustained dealmaking momentum in 2025 as operators accelerated sourcing diversification strategies and strengthened operational resilience as a buffer against macroeconomic disruptions. To date, the sector has benefited from robust growth in the Sporting Goods segment and a dynamic Boating & Watercraft category amid elevated demand for experience-driven purchases, both of which have supported healthy transaction volume and investor interest. In contrast, the broader Consumer market has weathered more uneven discretionary spending and softer merger and acquisition (M&A) activity, highlighting the Outdoor Recreation sector’s resilience. The sector’s resilience amid widespread market uncertainty has reinforced optimistic growth expectations for 2026, with many buyers looking to capitalize on this momentum by targeting acquisitions of companies with a wide range of brand offerings.

Sporting Goods continues to be an active segment for M&A in the Outdoor Recreation market as youth sports, rapid development of sports facilities, parent spending, and evolution in Sports Technology continue to be catalysts for growth. The Boating segment has seen a recent pickup in M&A activity as premium brands with affluent consumers are in demand.

Pete BaileySenior Director, Capstone Partners

Outdoor Recreation Market Participants Defensively Realign Global Sourcing Strategies

Consumer demand for outdoor recreation products remained robust in 2025, with sector public companies averaging last 12-month (LTM) revenue growth of 4.8% year-over-year (YOY) compared to 2024. This revenue growth outpaced the broader Retail and Food Service category sales (excluding motor vehicles and parts), which ended 2025 up 3.7% YOY, according to the U.S. Census Bureau.¹ Consumer stickiness has underpinned this relative strength in sector sales, even as discretionary spending patterns across other pockets of the consumer economy have softened. “Thule is well positioned regardless of the market situation, and we have sharpened our priorities to drive growth and profitability. More and more people want to live active lives, which also gives us tailwind over time. The work to build a larger, more profitable Thule continues,” Mattias Ankarberg, President and CEO of sports and outdoor equipment retailer Thule Group (OM:THULE), said in the company’s Q4 2025 earnings call.² Resilient consumer demand for outdoor recreation activities and equipment is expected to continue through 2026, strengthening operator confidence and reinforcing acquirer conviction around the sector’s long-term growth. In the near-term, companies have continued to tackle operational weaknesses and refine supply chain structures amid a shifting trade landscape.

Manufacturing and product development have undergone a significant transformation as companies have increasingly diversified production sourcing locations. This shift has stemmed from operators seeking to reduce exposure to tariff pressures, supply chain disruptions, and overreliance on select procurement pipelines. The “China Plus One” (C+1) strategy has become a widely adopted approach among sector manufacturers which involves expanding a company’s global assembly footprint to include at least one additional country beyond China and reducing dependency on a single sourcing location. Notably, Academy Sports and Outdoors (Nasdaq:ASO) reduced its reliance on Chinese production exposure from 50% in 2024 to just 6% by year-end 2025, according to a June 2025 press release.³ The sharp decline emphasizes how swiftly major Outdoor Recreation sector participants have adapted key supply chain operations. “We continue to proactively manage our supply chain in the face of changing tariff rates, including migrating certain products to more advantageous countries of origin and securing cost-sharing arrangements from our supplier partners,” said H. Andrew Fulmer, Executive VP and CFO at American Outdoor Brands (Nasdaq:AOUT), in the company’s Q1 2026 earnings call.⁴ These sourcing realignment strategies will likely continue as tariff and geopolitical volatility pressures persist, enabling sector businesses to maintain margin and sales performance and sustain both organic and inorganic growth initiatives.

Outdoor Recreation M&A Maintains Strong Upward Momentum

Outdoor Recreation market M&A has continued to expand in spite of muddied supply chain visibility and global tariff tensions as companies have turned to portfolio realignment and inorganic growth opportunities to maintain margins and profitability. Transaction volume marked its second straight year of growth in 2025, rising 47.7% YOY to 164 announced or closed deals. Conversely, broader Consumer industry M&A contracted 18.9% over the same period, highlighting the sector’s relative strength and significant headwind resistance compared to other Consumer markets. Elevated acquisition activity in the sector has carried forward into year-to-date (YTD) 2026, with M&A volume rising to 40 transactions from 20 in the prior year period. The sector’s consumer spending resilience has underscored this growth as sector businesses have remained insulated from incessant macroeconomic pressures, a trend that has continued to attract sustained M&A activity. Acquirers have demonstrated persistent appetite to use M&A to gain access to capabilities including supply chain agility, product quality, and margin protection.

Strategic buyers maintained the majority (83.5%) of Outdoor Recreation market acquisitions in 2025, recording 137 deals compared to 82 in 2024. This trend has continued in YTD 2026, with strategic acquirers accounting for 87.5% of total sector deal volume. Private strategic buyers have registered an 19 deal increase (+146.2% YOY) to date, while public strategics have remained relatively muted dropping one deal to date, as the group has shifted its focus towards internal operations amid elevated shareholder scrutiny and widespread macroeconomic volatility. Private equity (PE) deal volume dropped from 29 transactions in 2024 to 27 in 2025. The slowdown in financial M&A was caused by a 53.3% YOY drop in PE platform formations. Platform activity has remained subdued with zero new formations in YTD 2026 as fund managers have instead elected to focus on opportunistic tuck-ins for existing platforms. Add-on activity through early March has more than doubled YOY, rising from two to five transactions YTD. Conditions for renewed PE dealmaking have ripened as both secured overnight financing rate (SOFR) and spread rates declined in 2025, resulting in a more borrow-friendly environment and positive impacts to leveraged buyout (LBO) models, according to Capstone’s Q4 Capital Markets Update. Moreover, the amount of dry powder available for deployment reached a new high ($1.9 trillion) in 2025, signaling that sponsors are well-positioned to accelerate their reentry into the M&A market in 2026.

Resilient Sales, Sticky Consumers Reinforce Outdoor Recreation Valuations

Healthy acquirer appetite across the Outdoor Recreation market has supported elevated M&A pricing. The average EBITDA multiple has stayed flat between 2024 and YTD 2026 from 9.5x in 2022-2023. In contrast, the average M&A EBITDA multiple in the broader Consumer industry has fallen to 9.6x between 2024 and YTD from 11.8x in 2022-2023. Sustained sales growth, despite consumer spending and cost pressures, has positioned outdoor recreation businesses as attractive investment targets, intensifying buyer competition for quality, multi-brand platforms. The Sporting Goods segment notably contributed to this dynamic. Retail sales within the category grew 8.8% YOY in December 2025, further strengthening investor conviction in the segment’s growth trajectory, according to the Federal Reserve Bank of St. Louis (FRED).⁵ As a result, acquisitions of Sporting Goods segment companies, particularly those offering product diversification, customer loyalty, and competitive pricing synergies, have helped the sector maintain premium valuations relative to the broader Consumer market. Notably, Coats North America acquired O2 Partners in July 2025 for $770 million, representing 3.0x EV/Revenue and 10.0x EV/EBITDA. The shared synergies between the companies—combined with O2 Partners’ longstanding operational history and blue-chip partnerships in the Sporting Goods segment—supported Coats’ willingness to pay a premium for the business. Strong consumer engagement and high-single-digit category growth, paired with predictable revenue, margin stability, and actionable operational upside, have drawn premium valuation multiples for targets in the segment. Competitive M&A pricing is expected to persist in 2026, as operators position themselves to secure a strong foothold in the sector’s next growth phase.

Heightened Activity in Sporting Goods and Boating Segments Spark a Renewed Wave of Outdoor Recreation M&A

Category-level momentum has reshaped the Outdoor Recreation M&A market in 2026, concentrating buyer interest towards targets with synergistic segment operations positioned for scalable, long-term growth. The Sporting Goods segment has garnered substantial M&A appetite, with transactions doubling YOY to 10 deals in YTD 2026. Growth in Sporting Goods segment M&A has been underpinned by buyers pursuing vertically aligned capabilities to help mitigate external disruptions and support sustained growth during a challenging macroeconomic environment. Targets with strong brand reputation, product diversification, and accessibility to low- and mid-income consumers have attracted heightened acquirer interest. Complementing this momentum, a handful of larger transactions in the Boating & Watercraft segment have also contributed meaningfully to overall deal volume, as operators in these categories have ramped up M&A activity to streamline production and prioritize margin-stable business models. Durable demand patterns, recreational activity participation expansion, and immediate value creation have reinforced strategic rationale for buyers to pursue inorganic growth opportunities in the Outdoor Recreation market. Both the Sporting Goods and Boating & Watercraft categories are expected to remain central drivers of sector growth, setting a strong foundation for sustained M&A momentum throughout 2026. Several notable outdoor recreation transactions are listed below.

• Varsity Brands to Acquire Soccer.com and Lax.com (April 2026, ~$350 Million) – In April 2026, Varsity Brands, a KKR (NYSE:KKR)-backed team sports uniform and sports apparel company, acquired Soccer.com and Lax.com for ~$350 million in enterprise value. Varsity Brands has long been known for its expertise in cheerleading, and this acquisition will allow the company to expand its retail capabilities into the Soccer and Lacrosse segments that have seen growing participation as of late. One central focus around this deal for Varsity Brands and KKR was potential exposure to the club teams within these sports. Youth programs operate on recurring purchasing cycles for uniforms, training gear, and equipment which are usually updated every season. These revenue streams are expected to bring accounts with predictable cash flows, allowing the company to benefit from increased sales visibility.

• Malibu Boats Acquires Saxdor Yachts (March 2026, $259.3 Million, 7.2x EV/EBITDA) – Malibu Boats (Nasdaq:MBUU), a designer and manufacturer of diverse recreational powerboats and marine-services, acquired Saxdor Boats, for an enterprise value of $259.3 million, representing 7.2x EV/EBITDA for last-twelve-months (LTM) ending March 31, 2026, according to a press release.⁶ Saxdor Yachts engages in the production of premium adventure dayboats, known for innovative technology and functional luxury. This transaction will help Malibu Boats fill strategic gaps in its product suit, as well as expanding its sourcing and servicing capabilities. With Saxdor, we are taking a meaningful step towards our vision of becoming a global marine solutions and services provider. The strategic merits of this transaction extend beyond increased scale and portfolio expansion – it also establishes a global manufacturing footprint which provides for improved sourcing, expanded service capabilities, and a deeper distribution infrastructure – creating a more diversified, more resilient platform that can deliver results through market cycles,” mentioned Steve Menneto, CEO of Malibu Boats, in the press release.
• Donerail Group to Acquire MarineMax (February 2026, $1.9 Billion, 0.8x EV/Revenue, 12.5x EV/EBITDA) – Donerail Group, a California-based PE firm, announced its proposal to acquire MarineMax (NYSE:HZO) for $1.9 billion, equivalent to 0.8x Ev/Revenue and 12.5x EV/EBITDA in February 2026. MarineMax operates a dual-focused business model, combining traditional retail operations with in-house product manufacturing. The company retails new and used recreational boats, yachts, and sports cruisers, among many other types of watercrafts. The product manufacturing arm of the business focuses on producing a wide breadth of marine parts and accessories, including marine electronics, water sport fixtures, engine components, and high-performance boating modules. The prospective acquisition would give Donerail Group access to MarineMax’s extensive presence and diversified portfolio within the Boating Leisure market. MarineMax currently operates approximately 120 locations worldwide, containing more than 70 dealerships and 65 marina storage facilities, according to a February 2026 Reuters article.⁷
• MasterCraft Boating to Acquire Marine Products (February 2026, $229.3 Million, 0.9x EV/Revenue, 13.4x EV/EBITDA) – In February 2026, MasterCraft Boating (Nasdaq:MCFT) announced its acquisition of Marine Products (NYSE:MPX) for an enterprise value of $229.3 million (0.9x EV/Revenue, 13.4x EV/EBITDA). Marine Products manufactures recreation and sport fishing powerboats. The transaction will combine two recreational marine products manufacturers, bringing together MasterCraft’s product suite of premium performance and leisure powerboats with Marine Products’ recreational and sport fishing brands to create a more diversified portfolio. The integration of complementary supplier and consumer networks is expected to unlock expanded geographic coverage, accelerate new model launches, and strengthen manufacturing capabilities to service evolving end user needs. “Like MasterCraft, Marine Products has succeeded through Boating industry cycles with a disciplined approach to managing production, inventory levels, and dealer health while maintaining a robust financial profile. Together, we will be well positioned to capitalize on growth opportunities, particularly as demand for our products recovers,” stated Brad Nelson, CEO of MasterCraft, in a press release.⁸

• CPC Management-backed Paramount Apparel International Acquires Winston Collection (January 2026, Undisclosed) – In January 2026, CPC Management-backed headwear and apparel manufacturer, Paramount Apparel International (Imperial) acquired Winston Collection for an undisclosed amount. Winston Collection manufactures headcovers, towels, and leather goods mainly to the Golf end market. The acquisition expands the growing Imperial portfolio, while bolstering the company’s end-market presence and golf product suite. Through the acquisition, Winston Collection gains access to broader operational scale, merchandise development, and customer base. “Winston’s legacy of craftsmanship and dedication to service perfectly aligns with our go to market approach and pursuit of excellence. This acquisition marks an exciting leap forward in our mission to redefine what premium means in the Golf industry—by delivering innovative, top-tier products with unmatched speed and a service experience that sets a new standard,” mentioned Jeremy Davis, CEO of Imperial, in a press release.⁹

Strengthening product diversification, improving global sourcing infrastructure, and rising consumer engagement are expected to underpin continued expansion across the Outdoor Recreation market in 2026. Companies with meaningful exposure to high-momentum categories, including Sporting Goods and Boating & Watercrafts, will likely capitalize on these sector tailwinds to position themselves for heightened buyer interest. As a result, strategic and financial acquirers are anticipated to increasingly target these assets to complement and expand existing portfolios, supporting M&A activity through year-end.

To discuss the widespread shift in global sourcing and product diversification, provide an update on your business, or learn about Capstone’s wide range of advisory services and Outdoor Recreation market knowledge, please contact us.

Matt Milone, Analyst, was the lead Market Intelligence contributor to this article.

Endnotes

1. U.S. Census Bureau, “Advance Monthly Sales for Retail and Food Services,” https://www.census.gov/retail/sales.html, accessed March 13, 2026.

2. Thule Group, “Year-end Report, Fourth Quarter 2025,” https://www.thulegroup.com/en/reports, accessed March 13, 2026.

3. Academy Sports + Outdoor, “Academy Sports + Outdoors’ First Quarter 2025 Earnings Call,” https://investors.academy.com/events/event-details/academy-sports-outdoors-first-quarter-2025-earnings-call, accessed March 9, 2026.

4. American Outdoor Brands, “Q1 2026 American Outdoor Brands Inc. Earnings Conference Call,” https://ir.aob.com, accessed March 9, 2026.

5. Federal Reserve Bank of St. Louis, “Retail Sales: Sporting Goods Stores,” https://fred.stlouisfed.org/series/MRTSMPCSM45111USN, accessed March 12, 2026.

6. Malibu Boats, “Malibu Boats, Inc. Accelerates Its Global Expansion with the Acquisition of Category Disruptor Saxdor Yachts, One of the World’s Fastest-Growing Boat Brands,” https://malibuboatsinc.com/investor-information/earnings-news/news-details/2026/Malibu-Boats-Inc–Accelerates-Its-Global-Expansion-with-the-Acquisition-of-Category-Disruptor-Saxdor-Yachts-One-of-the-Worlds-Fastest-Growing-Boat-Brands/default.aspx, accessed March 13.

7. Reuters, “Donerail offers to buy MarineMax in all-cash deal valued $1.1 billion,” https://www.reuters.com/sustainability/sustainable-finance-reporting/donerail-offers-buy-marinemax-all-cash-deal-valued-11-billion-2026-02-03/, accessed March 6, 2026.

8. MasterCraft Boat Holdings, “MasterCraft Boat Holdings, Inc. and Marine Products Corporation to Combine, Creating a Diversified Portfolio of Proven Recreational Marine Brands,” https://investors.mastercraft.com/news-releases/news-release-details/mastercraft-boat-holdings-inc-and-marine-products-corporation, accessed March 6, 2026.

9. The Golf Wire, “Imperial Acquires Winston Collection,” https://thegolfwire.com/imperial-acquires-winston-collection/, accessed March 6, 2026.