Prairie Capital VII Partners With Royal Distributing

On November 4, 2022, Prairie Capital VII, LP partnered with senior management and KCM Capital (“KCM”) to recapitalize Royal Distributing (“Royal” or the “Company”). Headquartered in Ontario, Canada, Royal is an omnichannel distributor and retailer of aftermarket parts, accessories, and performance gear to the powersports market (snowmobile, ATV/UTV, dirt bikes) selling directly to outdoor enthusiasts through its eCommerce platform and retail locations.
 
Royal’s omnichannel business model provides customers access to the products they need wherever and whenever they choose to shop. The Company’s recognized reputation for product breadth and customer service has cultivated a passionate and loyal customer base within the powersports enthusiast community. Royal’s extensive product offering of 50,000 SKUs, including several private label brands, across multiple powersports categories creates a one-stop shop for customers and has fueled Royal’s tremendous growth.
 
The Canadian market for Royal’s products is estimated to be CAD$1.7 billion. Future demand for Royal’s products will benefit from a growing installed base of vehicles, increasing powersports participation rates, and rising vehicle usage frequency. The specialty retail channel, where Royal participates, is projected to grow at twice the overall market growth rate driven by enthusiast customers that value the convenience, expertise, and broad product selection of this channel.
 
Prairie Capital partnered with the management team and KCM to accelerate growth through company-building investments in human capital, sales and marketing, technology, infrastructure, and add-on acquisitions.
 
For more information on Royal Distributing, please contact:
 
DJ Lipke at dlipke@prairie-capital.com
Chris Killackey at ckillackey@prairie-capital.com