Q&A: Northern Wholesale CEO on Sun Capital Partnership – RVBusiness – Breaking RV Industry News
LINO LAKES, Minn. – Northern Wholesale Supply LLC (NWS) made headlines late last year when it was announced that substantially all of RV aftermarket distributor’s assets were acquired by an affiliate of Sun Capital Partners Inc., a global private investment firm with nearly 30 years of experience.
The strategic partnership marks the beginning of an “exciting chapter for the NWS business,” according to the release announcing the transaction, and brings “renewed resources, operational expertise and a strong foundation for long-term growth.”
“This acquisition represents an exciting opportunity to build on the strong legacy of NWS and unlock the full potential of the business,” said Chad Smith, CEO of NWS. “With Sun Capital’s support and expertise, we are well-positioned to enhance our operations, expand our reach, and deliver even greater value to our employees, customers, suppliers, and partners.”
After an extensive process to identify a partner with the expertise and resources to support the restructuring and growth of the NWS business, the release continued, Sun Capital was selected for its “proven track record and deep industry experience.” Sun Capital brings the experience and capabilities needed to support the business in achieving its strategic objectives and driving sustainable value creation.
Founded in 1984, NWS is a leading provider of RV and marine parts and accessories, selling over 30,000 products to hundreds of customers throughout the United States. The company also maintains a proprietary products division (primarily comprised of its Extreme Max product line to address unmet customer demand. NWS is headquartered in Lino Lakes, Minn.
What follows is an edited Q&A with Smith regarding the partnership with Sun and what it means for Northern going forward.
Tell us about your new partnership.
We’re really excited about this new chapter for NWS. Sun Capital shares our vision for growth and is fully aligned with our goals. They have a strong history of supporting companies like ours, helping them grow and succeed through customer service, innovative strategies and business investments. With their support, we’re able to continue focusing on what we do best—serving our customers, strengthening our processes, and empowering our team.
What are your future plans for NWS?
We have some exciting things ahead! We continue to expand our offering within RV, Marine and Powersports applications, building relationships with new manufacturing partners, and investing in tools and processes to better serve our customers. Given the volume of new products and technologies in our markets, we are partnering with suppliers to increase training and technical support for dealers. We are also making investments in our Owned Brands, specifically Boat Lift Boss and UltraLegs. We are excited about our recent product development and expanded manufacturing capacity in these products. The partnership with Sun Capital also allows us to focus on geographic expansion to reach more customers and widen our inventory footprint.
Can you speak to the challenges recreation markets have faced recently?
The past few years certainly have been a rollercoaster. Our markets saw unprecedented demand during and following the pandemic and lockdowns. The good news is this brought significant interest and new entrants to recreation of all types. However, in recent years, we have all been dealing with normalizing market demand, combined with the headwinds of inflation, high interest rates and market uncertainty. This combination of fluctuating demand and stubborn excess inventory has been a significant challenge for manufacturers, distributors, dealers and retailers alike.
At NWS, we’ve addressed these challenges by sharpening our demand planning, streamlining our warehouse and fulfillment operations and strengthening relationships with our dealers and suppliers. These adjustments have made us more agile and better prepared to handle market changes. We’re focused on making sure our customers facilitate consumers having an incredible experience, so they become lifelong recreation enthusiasts. That means offering reliable, high-quality products and making it easier for people to enjoy the outdoors.
Where do you see recreation markets headed in 2025?
We’re optimistic about the trajectory of recreation markets. Over the next couple years, we expect markets to show recovery as inflation eases, interest rates stabilize, and consumer confidence improves. That said, dealers and consumers remain cautious. Manufacturers and distributors will need to take the lessons learned from recent years to provide consistent, reliable service to support our customers. While new unit sales should start to rebound, the aftermarket remains a huge opportunity since so many units already in use require maintenance, repairs, and upgrades. We view aftermarket remaining a strong segment of the industry for years to come.
What trends do you see currently shaping the industry?
Given the fluctuation in demand and inventory, dealers are focused on optimizing their inventory of units and parts to best serve the consumer demand. Many dealers are also finding a balance between selling new and used units, while also focusing on service and aftermarket opportunities.
Manufacturers have been hard at work on new product development, and launching exciting and innovative new products and technologies that make recreation more accessible and enjoyable. This requires strong marketing efforts to drive awareness, as well as training and technical support to improve dealer and consumer confidence.
We have a lot of new entrants into recreation markets, and new ways to enjoy the outdoors with RVs, boats and a variety of powersports vehicles. The last few years have proven that recreation continues to be an affordable and exciting way for families and friends to have fun and create lasting memories.
What is the culture of NWS?
At NWS, we live by our core values: People, Accountability, Customers, and Teamwork (PACT). These values guide everything we do. Every team member is encouraged to go above and beyond for our customers and work together to achieve our shared goals. We’ve built a culture where hard work, integrity, and collaboration thrive to produce something special. I see examples of this every day, and it makes me incredibly proud to be part of this team. While we have been through a lot the last few years, we ride the rollercoaster together, and support each other to find new ways to adapt to best support our partners and customers.
So, in conclusion, what is your message to the industry – especially to your supplier partners and dealer customers –as NMS moves forward with the new partnership?
The new partnership with Sun Capital puts NWS in a strong position to thrive for the years to come. Our message to suppliers and customers starts with our team. Many of us being outdoor enthusiasts ourselves, we care about our industry, our relationships and the applications we serve. We made significant investments in the business in recent years that has allowed us to navigate the changing market conditions, and puts us in an ideal position to scale as markets normalize and return to growth. Sun Capital allows us to continue these investments, and focus on geographic expansion to spread our footprint and best practices. We are excited about the outlook for our industry, and the role NWS will play, as we adhere to our core values and focus on our role in helping people enjoy the outdoors.
