Capstone Partners advised Kash CA LLC, L.A.X. LLC, and Xtreme Bullets Mfg LLC (Kash-LAX)—a combined entity specializing in ammunition development and distribution—on its acquisition by Fernandez Holdings, Inc. (FHI). Terms of the deal were not disclosed.
Kash-LAX, the combined company, is comprised of Kash CA LLC, L.A.X. Firing Range LLC, and Xtreme Bullets Mfg LLC—a wholly-owned subsidiary of Kash CA LLC (Kash CA previously acquired certain assets from Howell Munitions & Technology or HMT and certain of its affiliates). L.A.X. Firing Range LLC, based in Los Angeles, CA, is the largest vertically integrated ammunition retailer in the U.S. The company is a full-service provider to firearms consumers with a dominant California retail presence and has a renowned indoor firing range with ancillary training and programs.
Kash CA LLC, based in Lewiston, ID, specializes in the development of ammunition, components, loading machinery, and Original Equipment Manufacturer (OEM) production. Combined, the companies own three very prominent DTC ecommerce domains that specialize in ammunition: www.laxammo.com, www.freedommunitions.com, and www.xtremebullets.com.
Kash-LAX’s vertically integrated business model has enabled the company to provide a reliable supply of ammunition to over 8.0 million new gun owners in 2020 and 5.4 million new gun owners in 2021. The Company is well positioned to meet the demand of an increasingly diverse and growing customer base. This transaction will further support the growth of the Company’s manufacturing capabilities, facilities and operations in Lewiston, ID, and vertical integration.
We had the right firm in Capstone Partners for this sale process. Being in a very unique and nuanced industry, Capstone was able to leverage their expertise in DTC ecommerce and tactical and outdoor coverage, to run a process that navigated us expertly through any and all challenges we faced.
Paul Louie, Managing Director at Capstone Partners commented, “I am very happy to effect this transaction that rewards Dan for his leadership and vision, and the very calculated risks he took to build the company to where it is today. Also, very excited to see where the new owner in Fernandez Holdings is able to elevate the company to new heights.”
Peter Bailey, Director who covers the Tactical and Outdoor sector for Capstone Partners added, “This transaction represents a very successful closing for a marquee client that is one of the largest online and brick and mortar retailers for their own branded and manufactured ammunition.”
Fernandez Holdings is a Los Angeles-based long-term investment firm focused on acquiring profitable middle market businesses with proven management teams, defensible market positions, and sustainable opportunities for growth. All investment capital is funded by its founder, Kirk Fernandez, and generated by its portfolio companies. FHI has no limited partners, which enables a long-term investment approach and the ability to buy-and-hold without the need to return capital to other investors. Learn more here: www.fernandezholdings.com
The expert investment banking professionals on Capstone Partners’ Consumer Investment Banking Team work with leading middle market companies operating in the Consumer market to advise with their strategic decision-making in order to maximize financial outcomes at every stage of the business lifecycle. Our firm has developed a full suite of corporate finance solutions, including M&A advisory, debt advisory, financial advisory, and equity capital financing to help privately owned businesses and private equity firms address any need, ranging from growth and financial or operational advisement to an ultimate exit transaction. To learn more about this transaction, or about the benefits of starting a relationship with our Consumer Banking Team, contact us here.