From Vista Outdoor
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.
Here’s more on the Vista purchase of Remington ammo and trademarks.
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.