Vista Outdoor Inc.’s Board of Directors approved a plan to separate its Outdoor Products and Sporting Products segments into two independent, publicly traded companies. The company expects to create these companies through a tax-free spin-off of its Outdoor Products segment to Vista Outdoor shareholders.
After the separation, the company’s Outdoor Products segment will be a platform of outdoor brands including CamelBak, Bell, Giro, Camp Chef, Bushnell, Bushnell Golf, Foresight Sports, Stone Glacier and QuietKat. As an independent company, Sporting Products will continue to focus on ammunition categories through its renowned brands including Federal, Remington, CCI, Speer, Estate Cartridge and HEVI-Shot.
The separation is expected to create these benefits:
- Enhanced strategic focus with supporting resources – Enhanced strategic focus with resources to support each company’s specific operational needs and growth drivers.
- Tailored capital allocation priorities – Tailored capital allocation philosophies that are suited to support each company’s distinctive business model and long-term goals.
- Strengthened ability to attract and retain top talent – Enhanced ability to attract and retain top talent that is ideally suited to execute each company’s strategic and operational objectives.
- Compelling value for shareholders –Differentiated and compelling investment opportunities based on each company’s particular business model. Vista Outdoor anticipates that as separate, independent companies, Outdoor Products and Sporting Products will each be better positioned to be more valued by the market.
- Expanded strategic opportunities – Improved focus will allow Outdoor Products to cement its reputation as the acquirer of choice through continued M&A in the outdoor recreation products marketplace and enable Sporting Products to secure attractive partnerships with other manufacturers.
Following the separation, Outdoor Products (to be renamed at a later date) will be a diversified platform of iconic outdoor brands, including CamelBak, Bell, Giro, Camp Chef, Bushnell, Bushnell Golf, Foresight Sports, Stone Glacier and QuietKat, among others. With its portfolio of brands, customer relationships, operational expertise and shared financial resources, Outdoor Products will be a provider of products for outdoor enthusiasts around the globe.
Outdoor Products will serve consumers in a diverse and fast-growing set of categories, representing an estimated $30 billion domestic market in its core and immediately adjacent end markets, with an estimated total global addressable market in excess of $100 billion. Outdoor Products will be led by Chris Metz as Chief Executive Officer and Sudhanshu Priyadarshi as Chief Financial Officer following the completion of the separation.
The Sporting Products (to be renamed at a later date) will continue to be a manufacturer of ammunition. Its brands, which include Federal, Remington, CCI, Speer, Estate Cartridge and HEVI-Shot, are beloved by hunters, recreational shooters and law enforcement worldwide. Sporting Products will continue to drive growth, operational efficiencies and cash flow by leveraging its operational expertise, scale, and customer relationships.
Sporting Products’ capital allocation strategy will prioritize using its cash flow for returning capital to shareholders. With its portfolio of ammunition brands and four domestic manufacturing facilities, Sporting Products will be positioned to continue meeting increased demand from its growing and increasingly diverse consumer base and greater hunting participation.
Jason Vanderbrink, who is currently President of Sporting Products, will be appointed Chief Executive Officer following the completion of the separation.
Vista Outdoor expects the transaction will be completed in 2023, subject to final approval by the company’s Board of Directors, a Form 10 registration statement being declared effective by the U.S. Securities and Exchange Commission, regulatory approvals and satisfaction of other conditions.
