- In 2017, Trilantic North America recapitalized Traeger, handing majority control to AEA Investors with Ontario Teachers' Pension Plan as partner while Trilantic and CEO Jeremy Andrus re-invested as minorities.
- The transaction implied about US$954 million of total equity consideration for Traeger.
- During Trilantic's ownership, Traeger tripled sales, expanded distribution, and strengthened product development and supply-chain operations.
- Traeger later went public in August 2021, raising roughly US$423.5 million in gross IPO proceeds.
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The 2017 recapitalization of Traeger Grills reflects a mature private equity transition from growth scaling to value realization. Trilantic North America, having been the lead investor since 2013, oversaw significant operational expansion and revenue growth—sales tripled during its stewardship. The move to bring in AEA Investors as majority shareholder, with Ontario Teachers’ Pension Plan participating, suggests that Trilantic perceived that Traeger had entered a phase where further growth would require deeper capital, stronger strategic brand-building, and possibly international expansion, areas where larger institutional investors could add value.
The deal value—US$954 million equity consideration—provides an implied valuation benchmark at that time, and supports the scale Traeger had reached by 2017. There is no public disclosure of EBITDA margins or earnings, but given the described level of investment, growth, and expansion of multiple channels (direct-to-consumer, retail, accessories, etc.), the implied expectations were high.
Strategically, the recapitalization allowed for several potential levers: leveraging AEA’s and Teachers’ capital and networks to accelerate Traeger’s brand strength, enhance international distribution, and possibly pursue further product innovation or category adjacencies. Trilantic’s continued minority investment also aligned incentives and allowed them to capture upside while partially exiting risk. CEO Jeremy Andrus retaining a stake signals management continuity and alignment.
Going forward, open strategic questions include: how much growth was organic vs. through acquisitions; what margin structure the company achieved or targeted; what competitive threats (e.g., gas, charcoal, or alternative outdoor cooking technologies) may impact its category leadership; and finally, how Traeger’s capital structure, especially post-IPO, supports continued innovation vs. needing further external financing.
Supporting Notes
- Trilantic North America agreed to recapitalize Traeger with AEA Investors as the new majority control shareholder, in partnership with Ontario Teachers’ Pension Plan; Trilantic and CEO Jeremy Andrus were to re-invest.
- The total consideration transferred to acquire 100% equity of Traeger in that transaction was US$954 million.
- Under Jeremy Andrus’ leadership during Trilantic’s prior ownership, Traeger’s sales tripled, with investments in product innovation, performance, features, quality, and supply chain optimization; distribution was expanded.
- In August 2021 Traeger completed an IPO, offering 23,529,411 shares at US$18.00 each, raising approximately US$423.5 million gross; it sold shares both from the company and from existing stockholders.
- Ontario Teachers’ Pension Plan had C$175.6 billion in net assets as of December 31, 2016, and has a significant track record of supporting consumer growth businesses.
- William Blair & Company acted as exclusive financial advisor to Traeger; legal advice to Traeger and AEA was provided by Kirkland & Ellis LLP and Fried, Frank, Harris, Shriver & Jacobson LLP respectively.