Vista Outdoor Announces Sale of Bolle, Cebe and Serengeti Eyewear Brands
Monday, July 9, 2018 10:15 AM
FARMINGTON, Utah—Vista Outdoor Inc.
(NYSE: VSTO) announced that it has entered into an agreement to sell the legal entities operating its Bolle
eyewear brands to an entity controlled by a European private equity fund. Although Vista did not name the private equity fund, the company filed a SEC document on July 2, 2018 which identified the buyer as Antelope Brands Bidco Inc., “a legal entity controlled by a significant private equity fund based in Europe.” As Vision Monday
, this sale is part of the company’s strategic business transformation plan, designed to allow the company to focus resources on growth in its core product categories of ammunition, hunting and shooting accessories, hydration bottles and packs, and outdoor cooking products.
“Gross proceeds from the divestiture are expected to be approximately $158 million, subject to customary working capital and transaction adjustments. The purchase price represents a premium to the EBITDA multiple paid for Bolle, Cebe and Serengeti as part of the Bushnell acquisition in 2013. Vista Outdoor expects to use the net after-tax proceeds of the sale to repay outstanding indebtedness. The transaction is expected to close within approximately 30 to 45 days, subject to customary closing conditions,” the company stated.
"We are pleased to have successfully reached an agreement to sell our eyewear and safety business at an attractive price," said Chris Metz, CEO of Vista Outdoor. "The business will have the opportunity to reach its full potential under new ownership. This divestiture is the first step in our transformation plan and will be the first of several potential asset sales that will significantly reduce Vista Outdoor's leverage and provide additional resources for us to reinvest in our core businesses."
Metz continued, "We are now turning our efforts to the rest of our divestiture plan as previously communicated in May. We are excited to build on this momentum and expect to provide further updates on this process during our first quarter earnings call in early August."