Vista Outdoor Acquires SUP Brand

Vista Outdoor Inc., which operates 30 outdoor and shooting sports brands, announced it has acquired privately owned Jimmy Styks, LLC, a leading designer and marketer of stand up paddle (SUP) boards and related accessories. The company offers nearly 30 SKUs in epoxy, inflatable, soft and thermoform boards, as well as accessories.

The completed transaction provides Vista Outdoor with access to the water sports market through the fast-growing SUP board segment, which experienced 35 percent growth in 2013 and 40 percent growth in 2014.

“The acquisition of Jimmy Styks is a direct result of our strategy to be a leading provider of outdoor recreation products, to expand into complementary and adjacent markets and to deliver long-term shareholder value,” said Chairman and Chief Executive Officer Mark DeYoung. “Jimmy Styks expands our portfolio into water sports with products that support activities many of our consumers enjoy, such as fishing, camping and spending their recreational time outdoors. This company and its products clearly support our mission to bring the world outside.”

Vista Outdoor paid approximately $40 million in an all-cash transaction with additional contingent consideration payable if incremental profitability growth milestones are achieved over the next three years. The purchase price represents an approximate 5.5x multiple on expected calendar year 2015 EBITDA. Vista Outdoor expects the acquisition to be accretive to FY16 earnings per share (EPS), including impacts associated with transaction expenses.

“Vista Outdoor’s established customer channels and our strengths in sales, marketing, distribution and consumer insights will support our ability to grow the Jimmy Styks brand. We will also focus on promoting and developing new products and expanding applications for this emerging platform,” said DeYoung.

Jimmy Styks was founded in 2009 in Huntington Beach, Calif., by Kyle Reeves and Jeremy Wilkens, who will remain with Vista Outdoor, and the company will be integrated into the Outdoor Products segment of Vista Outdoor.

“We believe stand up paddle boards remain in their infancy with only 10-15 percent of the number of kayak participants, which has between 15-20 million participants,” said Wilkens. “Like kayakers, participants can SUP anywhere there is water, however, SUP supports a broad range of water activities and wider demographic appeal.”

Reed Smith LLP acted as legal advisor to Vista Outdoor in connection with the transaction.