Vista Outdoors has become the latest to acquire labels in the bike market with a $400 million purchase of the Bell, Giro, Blackburn and C-Preme portfolios.
The acquisition of BRG’s Action Sports portfolio will include more than 600 employees present across the brands.
Relatively new to the bike world, Vista had bought Camelbak in 2015 and is also the parent for the Bollé label. The outdoor giant is highly active within the hunting and fishing markets. This investment will see the brand benefit from a strong presence in both bike and snowsports, signals the CEO.
“This acquisition is consistent with our strategic growth objective of becoming a world-leading outdoor sports and recreation products company,” said Vista Outdoor Chairman and Chief Executive Officer Mark DeYoung.
“This is our third acquisition since becoming an independent public company one year ago, and demonstrates our commitment to creating a solid leadership position in the individual outdoor recreation market with top-tier brands and market-leading capabilities. The Action Sports acquisition, combined with our strong CamelBak and Bollé brands, positions Vista Outdoor as a leading company in cycling and snow sports equipment in both North America and Europe. Adding these innovative and well-known consumer brands to our portfolio creates a channel leadership position, enabling us to sell a broad suite of Vista Outdoor products to specialty outdoor shops, wholesalers and leading outdoor product retailers.”
The transaction is subject to regulatory approvals and customary closing conditions. Vista Outdoor anticipates closing the transaction in the next 30 to 60 days.
Under the terms of the transaction, Vista Outdoor will pay a purchase price of $400 million, along with additional contingent consideration payable if incremental profitability growth milestones within the Powersports product line are achieved. The purchase price is subject to a customary working capital adjustment.
Vista Outdoor expects calendar year 2016 net sales for the Action Sports division of approximately$350 million.
The acquisition includes BRG Sports’ Action Sports division. BRG Sports will maintain ownership of Riddell. BRG