ANOKA, Minn., Oct. 13, 2020 /PRNewswire/ -- Vista Outdoor
Inc. (NYSE: VSTO), a leading global designer, manufacturer and
marketer of products in the outdoor sports and recreation markets,
today announced the successful closing of the acquisition of
certain assets related to Remington Outdoor Company's ammunition
and accessories businesses, and related intellectual property for a
gross purchase price of $81.4
million. Vista Outdoor expects the transaction to be
accretive to earnings, excluding transaction and transition costs,
in Fiscal Year 2022. For calendar year 2019, aggregate net sales by
the Remington ammunition and accessories brands were
approximately $200 million.
Chris Metz, Chief Executive
Officer, said, "The migration back to nature and into the outdoors
is the future. The combination of beloved ammunition brands created
by this transaction will benefit shooting sports enthusiasts,
outdoor recreation retailers and Vista Outdoor for many years to
come. We look forward to welcoming the people of Remington and
leveraging our collective passion, scale, manufacturing
infrastructure, distribution channels and Centers of Excellence to
bring Remington products to more consumers.
"During the past three years, we have transformed the Vista
Outdoor Ammunition business unit into a stronger, more nimble and
more profitable operation. Today, our Ammunition business unit's
operational expertise and efficiency are major competitive
advantages, enabling Vista Outdoor to rapidly respond to increased
demand in ways that other ammunition manufacturers simply can't
match. As we ramp into the fall hunting season, we are pleased to
offer hunting and shooting sports enthusiasts everywhere the best
the market has to offer. Our mission at Vista Outdoor is to be a
powerhouse of passionate outdoor sports and recreation brands.
Remington is an amazing fit. We are excited and honored to now
offer the Remington brand and the iconic green box to our
customers," concluded Metz.
Vista Outdoor acquired select assets related to Remington's
ammunition and accessories businesses, including Remington's
Lonoke, Arkansas manufacturing
facility and the Remington brand and trademarks. Vista Outdoor
used a combination of approximately $51
million of cash on hand and approximately $30 million from its asset-based revolving credit
facility to complete this transaction. The acquisition was approved
by the United States Bankruptcy Court for the Northern District
of Alabama. The transaction supports the company's strategy of
pursuing strategic and accretive acquisitions that generate
long-term shareholder value.
Houlihan Lokey Capital, Inc. served as transaction and financial
advisor and Reed Smith LLP served as legal advisor to Vista Outdoor
in connection with the transaction.
About Vista Outdoor Inc.
Vista Outdoor is a leading
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:
|
Investor
Contact:
|
|
|
Fred
Ferguson
|
Kelly
Reisdorf
|
Phone:
571-457-9082
|
Phone:
763-433-1028
|
E-mail:
media.relations@vistaoutdoor.com
|
E-mail:
investor.relations@vistaoutdoor.com
|
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SOURCE Vista Outdoor Inc.