Vista Outdoor continues to diversify and expand its sporting goods offering. Following its entry into the SUP market last week, Vista has entered into a definitive agreement to acquire CamelBak Products, LLC.
Under the terms of the transaction, Vista Outdoor will purchase CamelBak for $412.5 million, subject to a customary working capital adjustment, utilizing cash on hand and borrowings under its existing credit facilities. CamelBak currently is a subsidiary company of Compass Diversified Holdings, which acquired the brand for about $257 million in 2011. According to reports, CamelBak CEO will continue to lead the brand. Vista Outdoor anticipates closing the transaction within the next month. It expects calendar year 2015 net sales for CamelBak of approximately $160 million.
“The acquisition of CamelBak greatly advances Vista Outdoor’s strategy to grow and strengthen our leading position in the outdoor recreation industry,” said Mark DeYoung, Vista Outdoor Chairman and Chief Executive Officer. “CamelBak fortifies our presence in the mainstream individual outdoor recreation market, creating an opportunity to increase the scale, reach and growth of several current offerings through an expanded global sourcing capability and a broadened retail distribution network. With limited overlap between our key customers, this acquisition creates significant cross-selling opportunities, increased channel presence and access into expanded domestic and international markets. As a market leader and preferred partner, Vista Outdoor can leverage the technical expertise of CamelBak to deliver innovative solutions and quality product offerings that will create value for our shareholders and customers.”
The purchase price includes an approximate net present value of $35 million in future tax benefits associated with the deductibility of intangibles from a prior acquisition of CamelBak. The purchase price, net of the previously mentioned tax asset, represents a resulting effective multiple of approximately 11x CamelBak’s expected calendar year 2015 EBITDA. Absent transaction and transition costs, Vista Outdoor expects the acquisition to be accretive to Fiscal Year 2016 (FY16) earnings per share (EPS). Vista Outdoor will provide information relating to CamelBak’s impact on FY16 financial results as part of its first quarter earnings press release and webcast on August 13, 2015.
“CamelBak is enthusiastic about the opportunity to join the Vista Outdoor family of brands,” said McCoy. “Their successful platform will accelerate CamelBak’s growth as a global brand. Vista Outdoor supports our mission to continue to reinvent the way people hydrate and perform through innovative hydration products.”
