Vista Outdoor, a leading American outdoor recreation company, has announced that it has struck a deal to sell itself in parts to two buyers for a total of $3.4 billion. This move comes as part of Vista Outdoor’s strategic plan to streamline its business and focus on its core brands.
The first buyer is a consortium led by Compass Diversified Holdings, a publicly traded investment firm, which will acquire Vista Outdoor’s Bell and Giro helmets and Blackburn bike accessories brands for $400 million. These brands are known for their high-quality products and have a strong presence in the outdoor recreation industry.
The second buyer is a group of investors led by private equity firm Regent LP, which will acquire Vista Outdoor’s Savage Arms firearms business for $170 million. Savage Arms is a well-known manufacturer of rifles and shotguns and has a loyal customer base.
The sale of these two divisions will allow Vista Outdoor to pay down debt and focus on its remaining brands, which include CamelBak hydration packs, Bushnell optics, and Federal Premium ammunition. Vista Outdoor CEO Chris Metz stated, “This transaction is a significant milestone in our transformation plan to become a more focused and profitable outdoor recreation company.”
The deal is expected to close in the second half of 2022, pending regulatory approval. Vista Outdoor shareholders have expressed their support for the sale, with many seeing it as a positive step towards improving the company’s financial performance.
Overall, the sale of Vista Outdoor in parts to two buyers for $3.4 billion represents a strategic move by the company to streamline its operations and focus on its core brands. With the support of Compass Diversified Holdings and Regent LP, Vista Outdoor is well-positioned for future growth and success in the outdoor recreation industry.