Vista Outdoor has announced that, on 1 April 2016, it completed the acquisition of BRG Sports’ Action Sports division, which was operated by Bell Sports Corp. The acquisition includes the leading brands Bell and Giro, and C-Preme and Blackburn.
“Leveraging a disciplined process, Vista Outdoor has completed our third acquisition within the Outdoor Products segment within our first 14 months, creating a balanced offering of leading brands for outdoor enthusiasts,” said Vista Outdoor’s Chairman and Chief Executive Officer Mark DeYoung.
He continued, “The newly acquired brands strengthen our ability to provide a broad suite of innovative, high-quality products to specialty outdoor shops, wholesalers and leading outdoor product retailers. Combined with CamelBak and Bollé, the Action Sports brands position Vista Outdoor as the leader in cycling and snow sports equipment in North America and Europe. We are committed to the successful integration of Action Sports and the continued execution of our strategic growth strategy.”
In February, Vista Outdoor announced it had entered into a definitive agreement to acquire BRG Sports’ Action Sports division. Under the terms of the transaction, Vista Outdoor paid US$400 million with additional contingent consideration payable if incremental profitability growth milestones within the Bell Powersports product line are achieved.
Vista Outdoor expects calendar year 2016 net sales for the Action Sports division of approximately US$350 million. The purchase price represents an effective multiple of approximately 10x the expected calendar year 2016 EBITDA for the acquired brands.
Vista Outdoor financed the acquisition through a combination of cash, drawings on its revolving credit facility and increased Term Loan A borrowings of approximately US$300 million. As the company pointed out, ‘Absent transaction and transition costs, Vista Outdoor expects the acquisition to be accretive [adding to] to FY17 earnings per share.’
Vista Outdoor will incorporate the financial impact of the acquisition in its full-year FY17 guidance and will provide more information on the transaction as part of its Fiscal Year 2016 fourth quarter and full-year earnings press release and webcast in May.
Vista Outdoor’s acquisition included BRG Sports’ Action Sports division, while BRG Sports retains ownership of Riddell. The Action Sports brands are seen as ‘product category leaders, best-in-class innovators and industry pioneers in premium protective gear and related accessories.’
Bell, Giro, C-Preme and Blackburn have ‘set the standard for innovation and excellence in cycling, snow, action and powersports.’ Action Sports remains headquartered in Scotts Valley, California and operates facilities in the US, Canada, Europe and Asia. The acquisition of Action Sports includes more than 600 employees worldwide.
Reed Smith LLP acted as legal advisor to Vista Outdoor.
Vista Outdoor is a leading global designer, manufacturer and marketer of consumer products in the growing outdoor sports and recreation markets. The company operates in two segments, Shooting Sports and Outdoor Products, and has ‘well-recognized brands that provide consumers with a range of performance-driven, high-quality and innovative products in the ammunition, firearms and outdoor accessories categories.’
Vista Outdoor products are sold at leading retailers and distributors across North America and worldwide. Vista Outdoor is headquartered in Utah and has manufacturing operations and facilities in 10 US States, Canada, Mexico and Puerto Rico along with international sales and sourcing operations in Asia, Australia, Canada, Europe and New Zealand.
