ANOKA, Minn., Sept. 28, 2020 /PRNewswire/ -- Vista Outdoor
Inc. (NYSE: VSTO), a global designer, manufacturer and marketer of
products in the outdoor sports and recreation markets, today
announced that it has been named a successful bidder in the auction
process conducted in connection with Remington Outdoor Company,
Inc.'s ("ROC's") Chapter 11 bankruptcy cases pending in
the United States Bankruptcy Court
for the Northern District of Alabama. As a result, Vista
Outdoor will acquire certain assets related to ROC's ammunition and
accessories businesses, including ROC's ammunition manufacturing
facility in Lonoke, Arkansas and
related intellectual property, including the Remington brand and
trademarks. Vista Outdoor has agreed to pay a gross purchase
price of $81.4 million for the assets
to be acquired, subject to certain customary closing
adjustments. The transaction is subject to the approval of
the United States Bankruptcy Court for the Northern District of
Alabama at a hearing currently
scheduled for September 29, 2020, and
other customary closing conditions.
"Remington ammunition and accessories have a storied role in
America's sporting heritage, with a legacy dating back to 1816,"
said Chris Metz, Vista Outdoor Chief
Executive Officer. "We are excited and honored to add the
iconic Remington brand and green box to Vista Outdoor's portfolio
of ammunition brands, and Remington accessories to our portfolio of
Hunting and Shooting Accessories. The Remington brand is
beloved by hunting and shooting sports enthusiasts everywhere and
we look forward to restoring it to greatness by leveraging Vista
Outdoor's scale, manufacturing infrastructure, distribution
channels and Centers of Excellence.
"We see a clear path to value creation. With our deep
expertise and resources, we can transform Remington's ammunition
and accessories businesses to create a more efficient, profitable
and sustainable operation. At the same time, by rescuing the
Remington ammunition businesses from bankruptcy, we will protect
hundreds of jobs, support wildlife and habitat conservation and
ensure that hunting and shooting sports enthusiasts can continue to
purchase their favorite ammunition and accessories. We look at this
acquisition as a means of better serving millions of consumers with
the products they love from one of the country's original and
best-known brands, while furthering Vista Outdoor's mission of
being a powerhouse of passionate outdoor sports and recreation
brands," Metz added.
For calendar year 2019, aggregate net sales by the Remington
ammunition and accessories brands were approximately $200 million. Vista Outdoor expects the
transaction to be accretive to earnings, excluding transaction and
transition costs, in Fiscal Year 2022.
Vista Outdoor will be using cash on hand and available liquidity
under its asset-based revolving credit facility to complete this
transaction. Assuming court approval is received as
anticipated, Vista Outdoor expects to close the transaction early
in the third quarter of FY21. Remington's other business units,
including its firearms businesses, will be purchased by other
bidders in the auction and operated independently from Vista
Outdoor following the closing of those acquisitions.
About Vista Outdoor Inc.
Vista Outdoor is a global designer, manufacturer and marketer of
consumer products in the outdoor sports and recreation markets. The
Company has a portfolio of well-recognized brands that provides
consumers with a wide range of performance-driven, high-quality and
innovative products for individual outdoor recreational pursuits.
Vista Outdoor products are sold at leading retailers and
distributors across North America and worldwide. For news
and information, visit www.vistaoutdoor.com or follow us
on Twitter @VistaOutdoorInc and Facebook
at www.facebook.com/vistaoutdoor.
Forward-Looking Statements
Certain statements in this press release and other oral and written
statements made by Vista Outdoor from time to time are
forward-looking statements, including those that discuss, among
other things: Vista Outdoor's 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 Vista Outdoor's actual results to differ
materially from expectations described in such forward-looking
statements, including the following: impacts from the COVID-19
pandemic on Vista Outdoor's operations, the operations of our
customers and suppliers and general economic conditions;
general economic and business conditions in the United States and Vista Outdoor's other
markets outside the United States,
including 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; Vista Outdoor's ability to
attract and retain key personnel and maintain and grow its
relationships with customers, suppliers and other business
partners, including Vista Outdoor's ability to obtain acceptable
third party licenses; Vista Outdoor's ability to adapt its 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; Vista
Outdoor's ability to maintain and enhance brand recognition and
reputation; others' use of social media to disseminate negative
commentary about us and boycotts; reductions in or unexpected
changes in or our inability to accurately forecast demand for
ammunition, accessories or other outdoor sports and recreation
products; risks associated with Vista Outdoor's sales to
significant retail customers, including unexpected cancellations,
delays and other changes to purchase orders; supplier capacity
constraints, production disruptions or quality or price issues
affecting Vista Outdoor's operating costs; Vista Outdoor's
competitive environment; risks associated with diversification into
new international and commercial markets including regulatory
compliance; changes in the current tariff structures; the supply,
availability and costs of raw materials and components; increases
in commodity, energy and production costs; changes in laws, rules
and regulations relating to Vista Outdoor's business, such as
federal and state ammunition regulations; Vista Outdoor's ability
to realize expected benefits from acquisitions and integrate
acquired businesses; Vista Outdoor's ability to execute our
strategic transformation plan, including our ability to realize
expected benefits from the successful divestiture of non-core
brands and profitability improvement initiatives; Vista Outdoor's
ability to take advantage of growth opportunities in international
and commercial markets; foreign currency exchange rates and
fluctuations in those rates; 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; risks associated
with cybersecurity and other industrial and physical security
threats; capital market volatility and the availability of
financing; changes to accounting standards or policies; and changes
in tax rules or pronouncements. You are cautioned not to place
undue reliance on any forward-looking statements we make. Vista
Outdoor undertakes no obligation to update any forward-looking
statements except as otherwise required by law. For further
information on factors that could impact Vista Outdoor, and
statements contained herein, please refer to Vista Outdoor's
filings with the Securities and Exchange Commission.
Media
Contact:
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Investor
Contact:
|
|
|
Fred
Ferguson
|
Kelly
Reisdorf
|
Phone:
571-457-9082
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Phone:
763-433-1028
|
E-mail:
media.relations@vistaoutdoor.com
|
E-mail:
investor.relations@vistaoutdoor.com
|
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SOURCE Vista Outdoor Inc.