Vista Outdoor to sell eyewear brands, focus on other products
An unidentified European private equity fund will acquire Vista Outdoor’s eyewear brands Bollé, Cébé and Serengeti for $158 million. Vista is a publicly traded designer, manufacturer and marketer of outdoor sports and recreation products based in Farmington.
The company said that the sale is part of its previously announced strategic business transformation plan, designed to allow the company to focus resources on pursuing growth in its core product categories of ammunition, hunting and shooting accessories, hydration bottles and packs and outdoor cooking products.
“We are pleased to have successfully reached an agreement to sell our eyewear and safety business at an attractive price,” said Chris Metz, CEO of Vista Outdoor. “The business will have the opportunity to reach its full potential under new ownership. This divestiture is the first step in our transformation plan and will be the first of several potential asset sales that will significantly reduce Vista Outdoor’s leverage and provide additional resources for us to reinvest in our core businesses.”
Proceeds from the divestiture are expected to be used to repay outstanding indebtedness, the company said. Metz said the purchase price represents a premium to the price paid for the three brands as part of the Bushnell acquisition in 2013. The transaction is expected to close within approximately 30 to 45 days, subject to customary closing conditions, the company said.
“We are now turning our efforts to the rest of our divestiture plan as previously communicated in May,” said Metz. “We are excited to build on this momentum and expect to provide further updates on this process during our first quarter earnings call in early August.”
Robert W. Baird & Co. served as transaction and financial advisor and Reed Smith LLP served as legal advisor to Vista Outdoor in connection with the transaction.
Prior to the sale, Vista Outdoor, founded in 1990, employed 5,700 across all its brands. The company operates in two segments, outdoor products and shooting sports. Its products are sold at retailers and distributors across North America and worldwide. The company has manufacturing operations and facilities in 13 U.S. States, Canada, Mexico and Puerto Rico, along with international sales and sourcing operations in Asia, Australia, Canada, and Europe.