Vista Outdoor announces acquisition of Fox Racing

Fox Racing complements Vista Outdoor’s existing brand portfolio, expanding its leadership position in helmets, protective gear and apparel for motocross and mountain biking

Acquisition strengthens external product segment, adds approx $350 million in revenue

Anoka, Min., August 8, 2022 /PRNewswire/ — Vista Outdoor Inc. (NYSE: VSTO), the parent company of 40 well-known brands that designs, manufactures and markets sports and outdoor products to consumers around the world, today announced the closure of its acquisition. Irvine, Calif.based for the purchase price of Fox Racing $540 millionwith the possibility of an additional $50 million Earnings based on Fox Racing’s financial performance. The addition of Fox Racing, a global icon in performance motocross, mountain bike and lifestyle gear for adventure seekers, allows Vista Outdoors to add another category-leading brand to its portfolio while maintaining a strong balance sheet and drive to drive. Reinvests in its existing business. organic growth.

“We are excited to welcome Fox Racing to the Vista Outdoors family,” said Chris Metz, Chief Executive Officer, Vista Outdoors. “This renowned brand brings us with motocross into one of the most passionate sports bases and expands our footprint in mountain biking. Fox Racing is synergistic to our existing action sports business unit, which includes Bell Helmets, Giro, Blackburn, Crash, CoPilot and Raskulz. We are making successful implementation of our strategy of using accretion acquisitions to expand leadership positions across categories, while enhancing our ability to capitalize on long-term growth opportunities in outdoor entertainment. to continue

For 50 years, Fox Racing has been a leading voice in the motocross and adventure community, with a dedicated consumer follower and talented group of employees who exemplify the brand’s mission to “Respect Tomorrow, Conquer Today, and Invent Tomorrow”. Huh.” Fox Racing’s deep history of creating innovative gear that enables racers and explorers to reach new heights aligns perfectly with Vista Outdoor’s existing portfolio of leading outdoor brands. Fox Racing grew net sales at a compound annual growth rate of approximately 20 percent from calendar year 2019 to 2021 and is expected to grow about 20 percent in calendar year 2022.

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Jeffrey McGuanFox Racing’s CEO continues to lead the brand alongside existing members of Fox Racing’s leadership team. Fox Racing is now part of Vista Outdoor’s outdoor products segment and will be incorporated into the new outdoor products company upon completion of the previously announced separation.

Transaction details
Vista Outdoor paid a gross purchase price of $540 million, subject to certain customary closing adjustments and excluding contingent incentives of up to $50 million upon achievement of certain EBITDA targets. For calendar year 2022, Fox Racing’s full-year net sales and adjusted EBITDA are expected to be approximately $350 million and $55 million, respectively. Vista Outdoor expects the transaction to be accretive to earnings immediately, excluding transaction costs, transition costs and inventory step-up.

Vista Outdoor financed this acquisition through a combination of a $600 million asset-based revolving credit facility, which will replace Vista Outdoor’s existing asset-based revolving credit facility, and a $350 million secured term loan facility. Vista Outdoor’s leverage ratio remains well within the target leverage ratio of one to two times.

About Fox Racing
Since 1974, when Geoff Fox first introduced the world to our iconic logo, Fox Racing has been about family. Not just for the name – a legacy that continues to this day – but the idea of ​​celebrating and sharing the passion of life on two wheels with the world. This is what motivates us, motivates and keeps us close. Because “skull” is more than just a word for a family of foxes—it’s about adventure, loyalty of friends, and everything that happens along the way.

About Vista Outdoor Inc.
Vista Outdoors (NYSE: VSTO) is the parent company of more than three dozen well-known brands that design, manufacture and market sports and outdoor products. We serve a wide and diverse range of consumers worldwide, 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 sports products. Our operating model leverages resources shared across brands to achieve levels of excellence and performance that would be inaccessible for any single brand on its own. Brands include Remington Ammunition, Bushnell, Camelback, 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 in North America and around the world. Visit our website at for news and information.

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forward-looking statements
Certain statements and information in this report, excluding historical information, are “forward-looking statements”, which discuss, among other things: our plans, objectives, expectations, intentions, strategies, goals, outlook or other non-historical matters; projections regarding future revenue, earnings, earnings per share or other financial measures for Vista Outdoor; And the assumptions that underpin these matters. The words “believe,” “expect,” “estimate,” “intend,” “object,” “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. A number of risks, uncertainties and other factors could cause our actual results to differ materially from expectations described in such forward-looking statements, including: supplier capacity constraints, production or shipping disruptions or quality or price issues that affect our operating costs; supply, availability and cost of raw materials and components; Increase in commodity, energy and production costs; seasonal and weather conditions; our ability to complete the acquisition, realize the expected benefits from the acquisition, and integrate the acquired businesses; our inability to accurately forecast shortages or unexpected changes in or demand for ammunition, accessories, or other outdoor sports and entertainment products; Service disruption or a 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 for third-party technology; our ability to attract and retain key personnel; Disruption due to 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, markets and customer preferences, including our ability to shift end consumer preferences from brick and mortar retail to online retail; Our ability to maintain and enhance brand recognition and reputation; use of social media by others to spread negative comments about us, our products and boycotts; Consequences of contingencies in respect of litigation and other proceedings relating to intellectual property, product liability, warranty liability, personal injury, and environmental remediation; our ability to comply with broad federal, state and international laws, rules and regulations; changes to laws, rules and regulations relating to our business, such as federal and state ammunition regulations; risks associated with cyber security and other industrial and physical security threats; interest rate risk; changes to existing tariff structures; changes in tax rules or declarations; volatility in the capital market and availability of financing; foreign currency exchange rates and the fluctuations in those rates; General economic and business conditions in the United States and markets outside of us United States of america, including the war in Ukraine and 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 made by us. A more detailed description of the risk factors that could 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 the filings we made with the Securities and Exchange Commission. can be found. (“SEC”) from time to time. We undertake no obligation to update any forward-looking statements, unless otherwise required by law.

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Source Vista Outdoor Inc.