Mountain Equipment Company (MEC), the Canadian outdoor-gear retailer, has been acquired by a group of Canadian investors, marking a return to domestic ownership after years of financial turmoil and foreign control.

The new ownership group is led by Tim Gu, a veteran of Canadian retail, manufacturing, and investment.

Gu is best known as the president of textile manufacturer E. Star International and the principal owner of Smart Investment, a real estate investment firm. The latter company is active in all aspects of real estate, including acquisition, development, property management and leasing. 

Gu also chairs Unisync and is an investor in well-known Canadian heritage brands such as Tilley and Roots.

Vancouver-based MEC announced the sale in a news release. The announcement came after Gu told The Globe and Mail that he was a prospective purchaser of MEC, which operated as a co-operative for decades before it morphed into a company.

Gu told the Globe earlier that his group had to work the deal through all regulatory approvals, including a Competition Bureau of Canada review. The acquisition announcement indicates that all necessary approvals have been obtain, although the news release did not state that specifically. The Globe reported previously that the bureau was reviewing a deal between MEC and TGI Holding.

“MEC represents the best of Canadian spirit — adventure, resilience, and community,” said Gu. “As a lifelong believer in Canadian manufacturing and innovation, I’m proud to join MEC’s journey.

“Together, we’ll strengthen its foundation, expand its reach, and ensure that MEC remains an essential part of Canada’s outdoor culture for generations to come.”

The investor group includes MEC’s CEO Peter Hlynsky and Chief Merchandising Officer Chris Speyer, making this a partial management buyout that underscores strong internal belief in the company’s future, said MEC.

“There has never been a better time to celebrate being Canadian,” said Hlynsky. “Today marks the beginning of MEC’s next chapter, grounded in the values that built MEC from the start. We will continue to evolve and innovate in order to stay relevant to the next generation of outdoor enthusiasts, and we will remain true to what sets MEC apart: Expert staff who live and breathe the outdoors, stores that are anchors for outdoor communities and an unwavering commitment to providing the best assortment of outdoor gear found anywhere. MEC being back in Canadian hands means we are more committed than ever to equip Canadians for all trails ahead.”

The previous majority owner, Los Angeles-based Kingswood Capital Management, will retain a minority stake.

“Kingswood has been pleased with the investments we made in the business in the past four years,” said Kingswood Managing Partner Alex Wolf. “Now that it’s in a good place, we’re happy to see control move to new ownership and grow MEC’s presence across Canada.”

Founded in 1971, MEC operates 24 retail stores and employs approximately 2,000 people across the country. Its latest store opened in Whitby, Ont., in July 2024. With approximately six million members nationwide, the retailer remains a key player in Canada’s outdoor- recreation community.

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Pictured: Interior of an MEC flagship store.

Photo: Naturally Wood

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Photo: CNW Group/Mountain Equipment Company

Connect Canada on May 28 | Join Canada’s leading CRE owners, investors, developers, brokers, financiers, and more at Connect Canada on May 28^th at Malaparte in Toronto. Register now to catch forecasts from Canadian CRE leaders on market challenges and opportunities, insights into international investing with evolving market dynamics, the outlook for multifamily housing, and much more. www.ConnectCanada2025.com | May 28, 2025 | Toronto