After 46 years manufacturing all manner of paddlesports equipment, most notably PFDs, Stohlquist has ceased operations. The decision was made public in early January, following the acquisition of Stohlquist’s parent company, Aqualung Group, by investment banking firm Barings.
Stohlquist’s Operations Shuttered After 46 Years
According to Ryan Lightbody, former senior product manager at Stohlquist, there had been lots of top-level management shifts at Aqualung in the last five years, so the expectation among Stohlquist’s staff was that there would be more of this following the acquisition. But no one thought it would spell the end of Stohlquist.
“With any acquisition there are going to be changes,” says Lightbody. “But you don’t necessarily think they are going to shut you down.”
On December 8, 2023, a press release was published announcing the completion of Barings’ acquisition of Aqualung.
“Then four or five days later, we had an all-company meeting, at least with the North American employees, and the senior management announced then that they would be shutting down that office,” explains Lightbody.
The official decision was that the company would no longer be pursuing sporting goods within North America, affecting Stohlquist as well as a couple other internal brands in Aqualung’s portfolio.
Twenty years of partnership
Based in France, Aqualung started out manufacturing cutting-edge diving gear in 1943 and has since grown and acquired other diving and watersports brands. In 2004, they joined forces with Stohlquist to enter the paddlesports market in North America.
Lightbody, who has been with Stohlquist since 2008, says it was a great partnership.
“We were able to take advantage of this bigger company and have some support and distribution and sales support from Aqualung,” he explains. “That was really where Stohlquist grew the most was during that time, between 2004 and 2017.”
When Jim Stohlquist started the company in 1977, the focus was solely on whitewater apparel, but following the partnership with Aqualung the offerings grew to include recreational paddling and kayak fishing.
“I think the partnership helped bring some focus to the brand and really grow the offerings in a more meaningful way, rather than just making odds and ends pieces,” says Lightbody.
Barings acquisition brings dramatic changes
In 2017, Aqualung was bought by a private equity firm. This was when the management turnover began, and Lightbody says he started to see decisions that were very different from what Stohlquist would have decided for itself as a brand.
Talks of Barings acquiring Aqualung began in June 2023 and continued throughout the summer with various personnel changes and an office move for Aqualung’s California employees. Then the official acquisition announcement and decision to shutter sporting goods operations in North America.
“I think the main thing was they wanted to focus dollars on Aqualung, the namesake of the parent company,” Lightbody says. “I think the military professional business is typically a little more stable than the recreation market. With the ups and downs of COVID and things like that, I think they see that as a safer investment at the end of the day. It’s definitely interesting, definitely educational in terms of how bigger businesses look at us.”
Benjamin Gillett, managing director at Barings, said in an email that the company didn’t wish to comment at this stage. Michel Abaza, chairman and chief executive officer at Aqualung Group, also declined to comment while the companies are still in the preliminary stages of the sale.
While he was disappointed in the decision to shutter Stohlquist, Lightbody says he understands private equity and investment bank firms have a different way of looking at things than small businesses do.
“It’s easy to point the finger and say, ‘Those guys did this terrible thing.’ But they’re doing what they do, and hopefully we can get back to what we were doing.”
“I think you have to look at their decisions as being a separate business model than what a brand in paddlesports would do,” he continues. “Stohlquist is in the business of making great products that help people enjoy time on the water. And those guys’ business is buying and selling companies and hopefully making money. Sometimes, some things don’t align.”
In other words, the decision was all business.
“It’s easy to point the finger and say, ‘Those guys did this terrible thing.’ But they’re doing what they do, and hopefully we can get back to what we were doing,” says Lightbody.
A second wind for Stohlquist?
There have already been inquiries from other names in the paddlesports industry who are interested in acquiring Stohlquist and keeping the brand alive. But Lightbody says it’ll be up to Barings and Aqualung to accept these offers.
“We had some pretty exciting stuff playing, so that’s probably the most disappointing thing,” says Lightbody. “I’m hoping something can be revived, and some of those exciting things can see the light of day one of these days.”
As for Lightbody, he says he’s hoping to stay in the industry, whether that means sticking with Stohlquist if the brand is carried on or moving on to a new company.
“I’ve always enjoyed being part of paddlesports and the industry,” he says. “I think that’s one of the things that really stands out to me about paddlesports, is that despite being competitors, everyone knows each other, everybody’s buddies. It’s such a fun group of people to hang out with.”
After 46 years manufacturing all manner of paddlesports equipment, most notably PFDs, Stohlquist has ceased operations. | Feature photo: Vonpics/Pixabay
