Vista Outdoors acquires brands from BRG for $400 million

Vista Outdoor Inc., based in Clearfield, has agreed to acquire the Action Sports division of BRG Sports Inc. for $400 million.

Vista Outdoor Inc., based in Clearfield, has agreed to acquire the Action Sports division of BRG Sports Inc. for $400 million.

Vista announced the agreement last week.

The division, operated by Bell Sports Corp., includes the Bell, Giro, C-Preme and Blackburn brands. Its products include helmets for cycling, snow sports and powersports, plus goggles, footwear and cycling accessories.

Action Sports, based in Scotts Valley, California, operates facilities in the U.S., Canada, Europe and Asia and has more than 600 employees. Vista said the division’s net sales this year will be about $350 million.

Vista said the acquisition will be integrated into its Outdoor Products segment, resulting in a balancing of its brand portfolio between Shooting Sports and Outdoor Products.

“This acquisition is consistent with our strategic growth objective of becoming a world-leading outdoor sports and recreation products company,” Mark DeYoung, Vista Outdoor’s chairman and chief executive officer, said in announcing the deal.

“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.”

Terry Lee, BRG Sports’ executive chairman and CEO, said Vista Outdoor “is a perfect new home” for the Action Sports division.

“Under Vista Outdoor ownership, we are confident Bell, Giro, C-Preme and Blackburn will continue to drive product innovation and lead the industry,” Lee said. “We know they will continue to foster the strong people and product culture that makes these brands great.”

The transaction is subject to regulatory approvals and customary closing conditions, and Vista expects it to close in the next 30-60 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 said it plans to finance the acquisition through a combination of cash on hand, drawings on its revolving credit facility and increased Term Loan A borrowings of approximately $300 million.

Vista has manufacturing operations and facilities in 10 U.S. States, Canada, Mexico and Puerto Rico, along with international sales and sourcing operations in Asia, Australia, Canada, Europe and New Zealand.

BRG, also based in Scotts Valley, will maintain ownership of its Riddell brand, most famous for football helmets. But the brand also produces equipment used in baseball, softball, basketball, volleyball, lacrosse, soccer and track and field.