Traeger’s Private Equity Evolution: Growth, Risks & Strategic Moves

The announced article “Financial Advisor – Traeger Pellet Grills LLC / Kroll” appears to refer to Duff & Phelps’s advisory role in a transaction from June 18, 2013, when Trilantic Capital Partners bought a substantial minority interest in Traeger. Despite originally being published by or hosted on a Kroll domain, the content confirms Duff & Phelps was the exclusive financial advisor, in a minority equity recapitalization and a refinancing of Traeger’s credit facilities. [1]

The original deal did not disclose financial terms but included both ETL (equity) infusion and senior credit facility financing provided by Prospect Capital Corporation. That suggests a hybrid capital structure approach was used, allowing Traeger to grow leverage and equity in tandem. [2]

Four years later, in 2017, Traeger underwent a recapitalization. AEA Investors, in partnership with Ontario Teachers’ Pension Plan, became the majority control shareholders; Trilantic and CEO Jeremy Andrus reinvested. William Blair & Company served as exclusive financial advisor for Traeger in that transaction. Again, terms were not publicly disclosed. [3]

On operating performance, Traeger, Inc., now publicly traded (NYSE: COOK), shows signs of turning the corner despite ongoing loss-making: Q4 Fiscal 2024 saw total revenues at $604.1 million (down slightly year-over-year), net losses narrowed to US$34.0 million, with adjusted EBITDA improving to US$81.9 million from US$61.1 million prior year. Grill revenues have been the main growth engine, strongly outpacing consumables and accessories, the latter being pressured by softer demand (including the MEATER thermometer acquisition drag). [4]

Strategically, several tensions are emerging: macroeconomic headwinds (tariffs, trade policy, consumer softness), product mix shifts impacting gross margin, and international revenue declines (notably in “rest of world”). Management has withdrawn full-year guidance for FY 2025 due to uncertainty. To mitigate risks, the company is focusing on supply-chain optimization (including shifting away from China), selective pricing actions, cost reduction, and inventory control. [4]

Additionally, the brand strength has been defended legally: a lawsuit filed in 2019 accuses Dansons and Joseph & Brian Traeger of infringing IP rights and violating agreements involving name, likeness, trade dress, and design. This case underscores the importance of brand protection even in a highly competitive, commoditized product space. [6]

Open questions remain: what valuation multiples were involved in the 2013 and 2017 transactions, and how those translate into current expectations; how successful are cost mitigation & supply chain shifts in recapturing margin; whether accessories/IoT enable growth or continue as drags; how the consumer landscape will evolve under inflation and trade policy pressure; and how much legal risk remains in ongoing infringement suits.