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.

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.

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.

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).

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 Management has withdrawn full-year guidance for FY 2025 due to uncertainty.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.

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.

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.