Vista Outdoor Inc. has entered into a definitive agreement to acquire Irvine, Calif.-based Fox Racing, the manufacturer of motocross, mountain bike and lifestyle-related gear, at a purchase price of $540 million, with the potential for an additional $50 million earnout based on the company’s financial performance.
Vista said Fox Racing, with its 50-year history, “aligns perfectly with Vista Outdoor’s existing portfolio of leading outdoor brands.”
Vista Outdoor’s product segments include CamelBak, Bell, Giro, Camp Chef, Bushnell, Bushnell Golf, Foresight Sports, Stone Glacier, and QuietKat.
Fox Racing grew net sales by a compound annual growth rate of approximately 20 percent from the calendar year 2019 to 2021 with expected growth above that in the calendar year 2022.
“Over the last four years, we have built a diversified portfolio of iconic outdoor brands led by a proven leadership team that continues to execute well and drive strong results for our shareholders,” said Chris Metz, Vista Outdoor CEO. “With the acquisition of Fox Racing, we are continuing the successful implementation of our strategy to use accretive acquisitions to expand our leadership position and ability to capitalize on long-term growth opportunities in outdoor recreation. The Fox Racing acquisition meets all of our financial and strategic acquisition criteria, even before taking into account potential benefits from combining Fox Racing with our existing business..
“Fox Racing is an ideal fit for our portfolio with a reputation for high-quality helmets, protective gear and apparel for motocross and mountain biking,” Metz continued. “Motocross and mountain biking are growing and familiar categories for Vista Outdoor.”
He added that Fox Racing has synergies with Vista’s action sports business unit, including Bell Helmets, Giro, Blackburn, Krash, Copilot, and Raskullz.
“The addition of Fox Racing to our portfolio will allow us to target multiple consumer demographics across mountain and road biking, skiing/snowboarding and powersports,” Metz said. “We expect that Fox Racing and our legacy teams will find multiple opportunities to leverage core competencies, enhance supply chain efficiency and resiliency and better serve our customers and consumers to drive future growth. We believe the combined platform will make each business stronger and more profitable tomorrow than they are today while allowing us to continue delivering long-term returns for shareholders.”
Jeffrey McGuane, CEO, Fox Racing, will continue to lead the company following the close of the acquisition, as will all of Fox Racing’s leadership team.
Fox Racing will be part of Vista Outdoor’s Outdoor Products segment and included in its Outdoor Products Company at the completion of the previously announced separation.