Simms to
Anchor New Platform in the Fishing Category Within Vista Outdoor's
Outdoor Products Portfolio
Acquisition Strengthens Vista Outdoor with
12th Power Brand, Adds Approximately $110
Million in Net Sales
ANOKA,
Minn., Aug. 23, 2022 /PRNewswire/ -- Vista
Outdoor Inc. (NYSE: VSTO), the parent company of 41 renowned brands
that design, manufacture and market sporting and outdoor products
to consumers around the globe, today announced the closing of its
acquisition of Bozeman,
Mont.-based Simms Fishing Products for a purchase price of
$192.5 million, which includes a net
present value of roughly $20 million
in future tax benefits.
"The addition of Simms Fishing Products to the Vista Outdoor
family is transformational for our growing Outdoor Products
segment," said Chris Metz, Chief
Executive Officer, Vista Outdoor. "As the anchor of our new fishing
platform, Simms broadens our core
addressable market into a new, highly attractive category with a
premium, innovative brand that boasts significant room for growth.
We are especially excited that Simms will continue to call Bozeman home and will keep designing and
producing their world-famous waders in Montana."
Simms was founded in 1980 and
later acquired in 1993 by K.C. Walsh, its current Executive
Chairman, who continues with the company as a strategic advisor and
conservation and government affairs advocate. Simms CEO
Casey Sheahan continues to lead
day-to-day operations of Simms,
and the current Simms management
team and existing employee base will remain in place.
Simms is now part of Vista
Outdoor's Outdoor Products segment and will be included in the new
Outdoor Products Company upon the completion of the previously
announced separation.
Details on the
Transaction
Vista Outdoor paid a gross purchase price of $192.5 million, which included a net present
value of roughly $20 million in
future tax benefits. Simms grew
net sales by a compound annual growth rate of approximately 15
percent from calendar year 2019 to 2021 and is expected to grow in
excess of that in calendar year 2022. Vista Outdoor expects the
transaction to be accretive to earnings, excluding transaction
costs, transition costs and inventory step-up, in Fiscal Year
2024.
Vista Outdoor financed this acquisition via an existing ABL
credit facility. After the acquisition of Simms, Vista Outdoor's leverage ratio is well
within its target leverage ratio of one to two times. Vista
Outdoor expects to de-lever to roughly 1.5 times by the end of the
Fiscal Year 2023.
About Simms Fishing
Since 1980, Simms Fishing has created products that inspire you
to fish. We use our hands to craft groundbreaking gear that's built
to fish harder and go farther. Our products serve a higher purpose.
Fishing is fishing, but more importantly, gear that performs at the
highest level allows all anglers to embrace the overall fishing
experience and all the unique nuances that occur before and after
the catch. And as fishing has advanced, so too have we, into a
state-of-the-art design and manufacturing hub, where innovators
converge in Bozeman, Montana, to
form a diverse, creative family. For more, visit
www.simmsfishing.com.
About Vista Outdoor
Inc.
Vista Outdoor (NYSE: VSTO) is the parent company of more than
three dozen renowned brands that design, manufacture and market
sporting and outdoor products. We serve a broad and diverse range
of consumers around the globe, including outdoor enthusiasts,
golfers, cyclists, backyard grillers, campers, hunters,
recreational shooters, athletes, as well as law enforcement and
military professionals. Our reporting segments, Outdoor Products
and Sporting Products, provide these consumers with a wide range of
performance-driven, high-quality and innovative outdoor and
sporting products. Our operating model leverages shared resources
across brands to achieve levels of excellence and performance that
would be out of reach for any one brand on its own. Brands include
Remington Ammunition, Bushnell, CamelBak, Bushnell Golf, Foresight
Sports, Fox Racing, Bell Helmets, Camp Chef, Giro, QuietKat, Stone
Glacier, Federal Ammunition and more. Vista Outdoor products are
sold at leading retailers and distributors across North America and worldwide. For news and
information, visit our website at www.vistaoutdoor.com.
Forward-Looking
Statements
Some of the statements made and information contained in this
report, excluding historical information, are "forward-looking
statements," including those that discuss, among other things: our
plans, objectives, expectations, intentions, strategies, goals,
outlook or other non-historical matters; projections with respect
to future revenues, income, earnings per share or other financial
measures for Vista Outdoor; and the assumptions that underlie these
matters. The words "believe," "expect," "anticipate," "intend,"
"aim," "should" and similar expressions are intended to identify
such forward-looking statements. To the extent that any such
information is forward-looking, it is intended to fit within the
safe harbor for forward-looking information provided by the Private
Securities Litigation Reform Act of 1995. Numerous risks,
uncertainties and other factors could cause our actual results to
differ materially from the expectations described in such
forward-looking statements, including the following: supplier
capacity constraints, production or shipping disruptions or quality
or price issues affecting our operating costs; the supply,
availability and costs of raw materials and components; increases
in commodity, energy, and production costs; seasonality and weather
conditions; our ability to complete acquisitions, realize expected
benefits from acquisitions and integrate acquired businesses;
reductions in or unexpected changes in or our inability to
accurately forecast demand for ammunition, accessories, or other
outdoor sports and recreation products; disruption in the service
or significant increase in the cost of our primary delivery and
shipping services for our products and components or a significant
disruption at shipping ports; risks associated with diversification
into new international and commercial markets, including regulatory
compliance; our ability to take advantage of growth opportunities
in international and commercial markets; our ability to obtain and
maintain licenses to third-party technology; our ability to attract
and retain key personnel; disruptions caused by catastrophic
events; risks associated with our sales to significant retail
customers, including unexpected cancellations, delays, and other
changes to purchase orders; our competitive environment; our
ability to adapt our products to changes in technology, the
marketplace and customer preferences, including our ability to
respond to shifting preferences of the end consumer from brick and
mortar retail to online retail; our ability to maintain and enhance
brand recognition and reputation; others' use of social media to
disseminate negative commentary about us, our products, and
boycotts; the outcome of contingencies, including with respect to
litigation and other proceedings relating to intellectual property,
product liability, warranty liability, personal injury, and
environmental remediation; our ability to comply with extensive
federal, state and international laws, rules and regulations;
changes in laws, rules and regulations relating to our business,
such as federal and state ammunition regulations; risks associated
with cybersecurity and other industrial and physical security
threats; interest rate risk; changes in the current tariff
structures; changes in tax rules or pronouncements; capital market
volatility and the availability of financing; foreign currency
exchange rates and fluctuations in those rates; general economic
and business conditions in the United
States and our markets outside the
United States, including the war in Ukraine and the imposition of sanctions on
Russia, conditions affecting
employment levels, consumer confidence and spending, conditions in
the retail environment, and other economic conditions affecting
demand for our products and the financial health of our customers;
and risks related to our Planned Separation. You are cautioned not
to place undue reliance on any forward-looking statements we make.
A more detailed description of risk factors that may affect our
operating results can be found in Part 1, Item 1A, Risk Factors, of
our Annual Report on Form 10-K for fiscal year 2022 and in the
filings we make with Securities and Exchange Commission (the "SEC")
from time to time. We undertake no obligation to update any
forward-looking statements, except as otherwise required by
law.
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Media
Contact:
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Investor
Contact:
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Eric
Smith
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Shelly
Hubbard
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Phone:
901-573-9156
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Phone:
612-518-5406
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E-mail:
media.relations@vistaoutdoor.com
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E-mail:
investor.relations@vistaoutdoor.com
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SOURCE Vista Outdoor Inc.