AOUT - American Outdoor Brands to acquire Grilla Grills for $27M

American Outdoor Brands (NASDAQ:AOUT) will acquire privately-owned Grilla Grills for $27M in cash, or ~$24M after factoring in the future tax benefit resulting from the asset purchase. The acquisition will allow AOUT to enter the estimated $7B U.S. barbecue grill market with a direct-to-consumer brand that can benefit from AOUT's Dock & Unlock strategy and drive growth in its outdoor lifestyle product category. AOUT negotiated directly with the seller on the transaction, which will be structured as an asset acquisition, and is expected to be immediately accretive to AOUT's net sales and non-GAAP net income. The transaction is expected to be completed in the coming days. AOUT expects to fund the acquisition with a combination of cash on hand and availability from its existing line of credit. In conjunction with the acquisition, TD Bank approved an amendment to AOUT's current loan and security agreement, increasing the capacity on the revolving

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American Outdoor Brands to acquire Grilla Grills for $27M