Vista Outdoor Announces Closing of the Acquisition of Fox Racing

Fox Racing complements Vista Outdoor’s existing portfolio of brands and extends its leadership position in motocross and mountain bike helmets, protective gear and apparel

Acquisition strengthens outdoor product segment, solid growth 350 million dollars in sales

ANOKA, Minn., August 8, 2022 /PRNewswire/ — Vista Outdoor Inc. (NYSE: VSTO), the parent company of 40 renowned brands that design, manufacture and market athletic and outdoor products to consumers around the world, today announced it has completed the acquisition of Irvine, California.-based Fox Racing at a purchase price of $540 millionwith the potential for an additional 50 million dollars Earnout based on Fox Racing financial performance. The addition of Fox Racing, a global icon in performance motocross, mountain biking and lifestyle gear for the adventure seeker, allows Vista Outdoor to add another leading brand in its category to its portfolio, while maintaining a strong balance sheet and being in business existing business reinvested to drive organic growth.

Vista Outdoor Enters into Definitive Agreement to Acquire Fox Racing (PRNewsphoto/Vista Outdoor Inc.)

“We are delighted to welcome Fox Racing to the Vista Outdoor family,” he said Chris Metz, Managing Director, Vista Outdoor. “This legendary brand brings us into one of the most passionate sports bases for motocross and expands our presence in mountain biking. Fox Racing is a synergy with our existing action sports business unit which includes Bell Helmets, Giro, Blackburn, Krash, Copilot and Raskullz The addition of Fox Racing to our portfolio will allow us to target multiple consumer demographics in the mountain and… to address road cycling, skiing/snowboarding and powersports. With the now completed acquisition of Fox Racing and the announced proposed acquisition of Simms Fishing Products, we continue to successfully execute on our strategy of leveraging value-added acquisitions to expand leadership positions in all categories while expanding our capability to improve long-term growth opportunities in the outdoor leisure space.”

For 50 years, Fox Racing has been a leading voice in the motocross and adventure community, with a dedicated fan base and a talented group of employees who embody the brand’s mission to “Honor yesterday, conquer today and conquer tomorrow.” invent”. Fox Racing’s long history of creating innovative gear that helps racers and explorers reach new heights is a perfect fit with Vista Outdoor’s existing portfolio of leading outdoor brands. Fox Racing grew net sales at a compound annual growth rate of approximately 20 percent from calendar year 2019 through 2021 and is expected to grow an additional approximately 20 percent in calendar year 2022.

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Jeffrey McGuane, CEO of Fox Racing, will continue to lead the brand alongside the current members of the Fox Racing leadership team. Fox Racing is now part of Vista Outdoor’s Outdoor Products segment and will be incorporated into the new Outdoor Products Company upon completion of the previously announced separation.

Transaction details
Vista Outdoor paid a gross purchase price of $540 million, subject to certain customary closing adjustments and excluding contingent incentives of up to $50 million, subject to the achievement of certain EBITDA targets. For calendar year 2022, Fox Racing’s full year net sales and Adjusted EBITDA are expected to be approximately $350 million and $55 million, respectively. Vista Outdoor expects the transaction to have an immediate earnings impact, excluding transaction costs, transition costs and inventory replenishment.

Vista Outdoor financed this acquisition through a combination of a $600 million asset-based revolving credit facility, which will replace Vista Outdoor’s existing asset-based revolving credit facility, and a $350 million secured loan facility . Vista Outdoor’s leverage ratio remains well within the target leverage ratio of 1x to 2x.

About Fox Racing
Fox Racing has been about family since 1974, when Geoff Fox first introduced the world to our iconic logo. Not just in name – a legacy that continues to this day – but also in the idea of ​​celebrating and sharing the passion of life on two wheels with the world. This is what drives us, inspires us and keeps us close. Because “Skulk” is more than just a word for a family of foxes – it’s the adventure, the loyalty of friends and everything that happens along the way.

About Vista Outdoor Inc.
Vista Outdoor (NYSE: VSTO) is the parent company of more than three dozen renowned brands that design, manufacture and market athletic and outdoor products. We serve a wide and diverse range of consumers around the world, including outdoor enthusiasts, golfers, cyclists, barbecue grills, campers, hunters, recreational shooters, athletes, and law enforcement and military professionals. Our Outdoor Products and Sporting Products reporting segments provide these consumers with a wide range of performance-oriented, high quality and innovative outdoor and sporting products. Our operating model leverages shared resources across brands to achieve levels of excellence and performance that would be unattainable for a single brand. Brands include Remington Ammunition, Bushnell, CamelBak, Bushnell Golf, Foresight Sports, Fox Racing, Bell Helmets, Camp Chef, Giro, QuietKat, Stone Glacier, Federal Ammunition and more. Vista Outdoor products are sold by leading retailers and distributors throughout North America and worldwide. Visit our website at for news and information.

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Forward-Looking Statements
Some of the statements and information made in this report, other than historical information, are “forward-looking statements,” including those that discuss, among other things: our plans, goals, expectations, intentions, strategies, objectives, outlook or other non-historical matters ; forecasts regarding future sales, income, earnings per share or other financial measures for Vista Outdoor; and the assumptions underlying those matters. The words “believe,” “expect,” “anticipate,” “intend,” “aim,” “should,” and similar expressions are intended to identify such forward-looking statements. To the extent that such information is forward-looking, it is intended to conform to the safe harbor for forward-looking information of the Private Securities Litigation Reform Act of 1995. Numerous risks, uncertainties and other factors could cause our actual results to differ materially from those anticipated in such forward-looking statements, including the following: supplier capacity limitations, production or shipment disruptions, or quality or pricing issues affecting our operating expenses; supply, availability and cost of raw materials and components; increases in raw material, energy and production costs; seasonality and weather conditions; our ability to complete acquisitions, realize anticipated benefits from acquisitions and integrate acquired businesses; decreases or unexpected changes or our inability to accurately predict demand for ammunition, accessories or other outdoor sports and recreation products; service interruption or significant increase in the cost of our primary delivery and shipping services for our products and components, or significant disruption at shipping ports; risks related to diversification into new international and commercial markets, including regulatory compliance; our ability to capture growth opportunities in international and commercial markets; our ability to acquire and maintain licenses for third-party technologies; our ability to attract and retain key personnel; disruptions from catastrophic events; risks associated with our sales to major retail customers, including unexpected cancellations, delays and other changes to orders; our competitive environment; our ability to adapt our products to changes in technology, the marketplace and customer preferences, including our ability to respond to changing consumer preferences from brick-and-mortar to online retail; our ability to maintain and improve brand awareness and reputation; the use of social media by others to post negative comments about us, our products and boycotts; the outcome of contingencies, including those relating to litigation and other proceedings relating to intellectual property, product liability, warranty liability, personal injury and environmental remediation; our ability to comply with extensive federal, state and international laws, rules and regulations; Changes in laws, rules and regulations relating to our business, such as B. Federal and State ammunition regulations; risks related to cyber security and other industrial and physical security threats; interest rate risk; changes in current fare structures; changes in tax regulations or pronouncements; capital market volatility and the availability of financing; foreign currency exchange rates and fluctuations in such rates; general economic and business conditions in the United States and our non-US markets United States, including the war in Ukraine and the imposition of sanctions on Russia, conditions affecting employment levels, consumer confidence and spending, conditions in the retail environment and other economic conditions affecting demand for our products and affect the financial health of our customers; and risks related to our proposed separation. You are cautioned not to place undue reliance on any forward-looking statements we make. A more detailed description of the risk factors that may affect our results of operations can be found in Part 1, Item 1A, Risk Factors, our Annual Report on Form 10-K for fiscal year 2022 and our filings with the Securities and Exchange Commission ( the “SEC”) from time to time. We assume no obligation to update any forward-looking statement, except as required by law.

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SOURCE Vista Outdoor Inc.

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