GSM Outdoors Senior VP: ‘We have no desire to milk brands for profit’

When it comes to hitting the acquisition trail there are few – if any – in the industry who can match GSM Outdoors in the US.

Since making the decision to strike out into the fishing tackle market three years ago, the Irving, Texas business has not been slow to build up an impressive line-up of businesses, adding 16 tackle companies to its portfolio.

Before turning its attention to the fishing tackle industry, GSM Outdoors was already a major player in the hunting and shooting space and boasts a range of top brands in the sectors. The company’s Senior VP of Fishing, Crispin Powley, told Angling International: “We believe that we can offer a unique one-stop-shop to both retailers and customers with a collection of fishing brands and products that the outdoorsman knows and relies on.

“Many hunters fish. Many anglers hunt. We believe that we have assembled the best collection of fishing and hunting brands ever. Our team are very passionate end-users and care deeply about the category and the sport. Fishing is what we do and it made perfect sense for the GSM model.”

GSM announced its entrance into the fishing market with the acquisition of the highly respected Gary Yamamoto Custom Baits brand, a lure maker that Powley says was the perfect brand to enter fishing with. “It is a premium legacy brand with a category leading product in the Senko and loads of runway for growth.”

GSM’s latest acquisition is one of its largest – Northland Tackle. Powley says: “We wanted to be competitive in the Midwest and the northern region of the US as well as Canada. We wanted to be meaningful in walleye, ice, panfish and bass. Northland ticks all those boxes. The brand is born and bred in that region with products designed and endorsed by anglers who represent the region.

“We were always impressed with the traditions and legacy of Northland and once it became a viable opportunity we jumped at it.”

He adds that there is no ‘one size fits all’ answer to the question of what criteria must potential acquisitions fulfil. “We tend to look for brands that complement our current portfolio, but also have an opportunity for growth. We have no desire to acquire brands and milk them for profit.

“Our goal is to better a brand post acquisition. To us that means increasing quality, not the cost any more than absolutely necessary. Ultimately, we want to design products that give anglers the greater opportunity to be successful. I realise that isn’t the reputation that typically comes with a company the size of ours, but until someone tells us otherwise that will be our modus operandi.”

Integrating so many brands at once could be a logistical nightmare, but Powley counters: “One of the advantages we have at GSM that many people don’t understand is the value of our synergies with processes. We can integrate an individual brand into our processes and make it more efficient and productive from day one.

“Also, when sourcing materials we have an advantage over most of our competitors due to volume. Another often overlooked part of our integration strategy is relationships. We have assembled a team on the fishing side with well over 100 years of combined experience in the industry.

“We all bring decades-long relationships with vendors and buyers. We have operational advantage combined with the personal aspect few can rival.”

Despite being aggressive in the acquisition market, Powley says that GSM does not have a set number of takeovers in mind. “We do, however, have a list of brands that appeal to us and our vision. We are not perusing the close-out aisle looking for deals, but we are interested in meaningful brands that we can add value to.

“We have a vision of offering a portfolio of meaningful brands and products to retailers and consumers across most genres of fishing. We won’t buy a brand simply because it is for sale. Even if it fits in an area of need for us, we are very systematic in our approach of identifying companies and products that have a real value to the end user.

“Historically, ‘conglomerates’ have a reputation for buying cheap, selling high and whittling down brands to only best-selling items. That’s not who we are or what we want to do. We have a legitimate passion for fishing and products that make fishing productive. We treat each brand as if we personally own it and rely on it for our fishing experience.”

Powley adds that in the longer-term his ambition is to showcase a portfolio of brands to the market that proves anglers still dictate what manufacturers produce. “I want to show that a big company can run legacy brands with the same hands-on care that the originators did.

“I want my team to be happy with how we do business and retailers and anglers to feel the same. I want people to say: GSM did this right.”

Powley spent 17 years at Strike King before joining GSM in 2021. He explains: “CEO Eddie Castro and CSO Zach Henderson pitched me their vision and the opportunity to do exactly what we are right now. It was an incredible opportunity and one of the best decisions I have ever made.”