Vista Outdoor Completes Acquisition of BRG Sports, Inc.’s Action Sports Division

Vista Outdoor
Vista Outdoor

Anoka, MN -(AmmoLand.com)- Today, Vista Outdoor Inc. (NYSE: VSTO) announced that on April 1, 2016, it completed the acquisition of BRG Sports Inc.’s (BRG Sports) Action Sports division, which was operated by Bell Sports Corp.

The acquisition includes the market-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. “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.”

On February 25, 2016, 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 $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 $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 on hand, drawings on its revolving credit facility and increased Term Loan A borrowings of approximately $300 million.

Absent transaction and transition costs, Vista Outdoor expects the acquisition to be accretive 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 updated investor overview presentation reflects information regarding the transaction and can be found on the company’s website at http://investors.vistaoutdoor.com.

Vista Outdoor’s acquisition included BRG Sports’ Action Sports division, while BRG Sports retains ownership of Riddell. The Action Sports brands are product category leaders, best-in-class innovators and industry pioneers in premium protective gear and related accessories. Bell, Giro, C-Preme and Blackburn 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 U.S., 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.

About Vista Outdoor Inc.:

Vista Outdoor is a leading global designer, manufacturer and marketer in the growing outdoor sports and recreation markets. The company operates in two segments, Shooting Sports and Outdoor Products, and has a portfolio of well-recognized brands that provide consumers with a range of performance-driven, high-quality and innovative products in the ammunition, firearms and outdoor products 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 U.S. States, Puerto Rico, Mexico and Canada along with international sales and sourcing operations in Canada, Europe, Australia, New Zealand and Asia.

For news and information visit www.vistaoutdoor.com or follow us on Twitter @VistaOutdoorInc and Facebook at www.facebook.com/vistaoutdoor.