Vista Outdoor (VSTO 16.55, -0.03, -0.18%) announced the first phase of its business transformation plan three months
ago. Since then the outdoor sports and recreation equipment company has been
selling certain eyewear and safety business entities to a European private
The strategy was first announced on May 1 in conjunction with the company’s fourth quarter report and the announcement of its exit from the firearm business. It aims to achieve growth through its core ammunition, hunting and shooting accessories, hydration bottles and packs, and outdoor cooking products. The company’s plans included the possible sale of assets which fell outside of these core categories, including Vista’s remaining Sports Protection brands (e.g. Bell, Giro, and Blackburn), Jimmy Styks paddle boards, and Savage and Stevens firearms.
Gross proceeds from the divestiture are expected to be around $158 mln, subject to customary working capital and transaction adjustments. Vista 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.
Management expects to update further on its business transformation plan when it announces first quarter earnings in early August.
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