ANOKA, Minn., September 10, 2021 / PRNewswire / –
- The acquisition expands Vista Outdoor’s presence in high-growth, less cyclical outdoor product markets
- Foresight Sports is accelerating Vista Outdoor’s path towards higher operating margins over the long term
- Acquisition positions Vista Outdoor as a technology leader in the golf industry
- Acquisition in line with Vista Outdoor’s strategy of acquiring market-leading brands where Vista Outdoor can add immediate value
- Foresight Sports is expected to be profitable immediately, with no transaction and transition costs
- Vista Outdoor’s leverage ratio is expected to be below 1.5x at close and below 1.0x at the end of fiscal 2022
Vista Outdoor Inc. (NYSE: VSTO), a leading global designer, manufacturer and marketer of products for the outdoor sports and leisure market, today announced a definitive acquisition agreement San Diego-based Foresight Sports, a leading designer and manufacturer of golf performance analysis, entertainment and game improvement technologies, for $ 474 million. Foresight Sports is a vertically integrated development and manufacturing company that creates launch monitors, simulators, performance / entertainment software and intelligent mobility solutions for on and off-course golf activities and a variety of other sports and games.
“The addition of Foresight Sports immediately positions Vista Outdoor as one of the leading technology providers in the golf industry. Foresight Sports is the industry leader in golf technology and monitor adoption and I am excited to welcome their team of 150+ dedicated employees Vista Outdoor, “said the CEO of Vista Outdoor Chris Metz. “Together under one roof, Bushnell Golf and Foresight Sports will increase the strengths of their brands, develop and develop new segments of the industry and drive growth and brand awareness on an unprecedented scale. With more than 36 million golfers in the US alone, combined with growth in the international, digital and off-course space, Vista Outdoor is well positioned as a leader in golf data collection, hardware development, game improvement and accuracy. “
Foresight Sports has innovated both on- and off-course categories with the most launch monitors and golf simulation solutions in retail stores, driving ranges, commercial establishments and homes worldwide. The Foresight Sports GCQuad Launch Monitor has won the Editors’ Choice Award from Golf Digest for the best launch monitor than any other technology for four consecutive years. In addition to Launch Monitor technology, the company’s Sim-In-A-Box line of golf simulators represent a whole new category of compact, affordable indoor golf solutions that have captured a leading share of the global simulator market in just two years.
Earlier this year, Vista Outdoor brand Bushnell Golf entered into an exclusive domestic partnership with Foresight Sports to bring pro-grade launch monitor technology to the everyday golfer. Launch Pro, a personal launch monitor based on the best and most widely adopted technology in the industry, will be available this fall on BushnellGolf.com and select golf retailers across the country.
“Foresight Sports is at an early stage of market penetration and its products, software and technology are poised to further revolutionize the golf industry. Our financial stability, broad distribution and competence centers will immediately support their operations and drive accelerated growth,” said Chief Financial Officer Sudhanshu Priyadarshi. “The strength of our balance sheet, combined with an efficient use of capital, enabled us to seize this opportunity to acquire a fast-growing, high-margin outdoor product business at an attractive multiple. The acquisition of Foresight Sports will drive gross margin growth and our path towards higher operating margins over the long term. The recurring nature of their software and service products creates solid customer relationships that we expect will add to our revenue, data collection and performance. “
Details of the proposed transaction
Vista Outdoor has agreed to a gross purchase price of $ 474 million, subject to certain customary closing adjustments and without conditional incentives of up to $ 25 million, upon reaching certain net sales targets. The gross purchase price includes a net present value of approx $ 60 million for future tax benefits. For the calendar year 2021, Foresight Sports’ net sales and adjusted EBITDA for the full year are expected to be approx. $ 100 million and $ 50 million, or Vista Outdoor assumes that the transaction will have an immediate positive effect on earnings without transaction and transition costs.
Vista Outdoor expects to use the cash on hand and available liquidity under its currently undrawn revolving credit facility on an asset basis to complete this transaction. Assuming customary closing conditions are met, Vista Outdoor expects the transaction to close in the third fiscal quarter of FY 2022.
PricewaterhouseCoopers Corporate Finance LLC served as financial advisor and Gunderson Dettmer, LLP served as legal advisor to Foresight Sports.
Reed Smith LLP acted as legal advisor to Vista Outdoor in connection with the transaction.
About Foresight Sports
Foresight Sports develops the most advanced and reliable performance analysis solutions in the golf industry. The brand is responsible for the tour-dominant GCQuad launch monitor and the game’s best-selling launch monitor, the GC2. Outside or inside, from state-of-the-art start monitors and software to the ultimate virtual golf experience, Foresight Sports is your complete technology solution. More information is available at www.foresightsports.com.
About Vista Outdoor Inc.
Vista Outdoor is a leading global designer, manufacturer and marketer of outdoor recreational and shooting sports products. We operate in two reportable segments: shooting sports and outdoor products. Together, our segments serve the outdoor sports and leisure market through a diverse portfolio of well-known brands that offer consumers a wide range of performance-oriented, high-quality and innovative products. Brands include Remington Ammunition, Bushnell, CamelBak, Bushnell Golf, Bell Helmets, Camp Chef, Giro, QuietKat, Federal Ammunition and more. Vista Outdoor products are sold at leading retailers and distributors throughout North America and worldwide. For news and information, visit our website or investor relations page and follow us on Twitter.
Certain statements in this press release and other oral and written statements by Vista Outdoor from time to time are forward-looking statements, including those that may not address, but are not limited to, Vista Outdoor’s plans, goals, expectations, intentions, strategies, goals, prospects, or otherwise – historical affairs; Forecasts of future sales, earnings, earnings per share, or other financial metrics for Vista Outdoor; and the assumptions underlying these 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 fit the safe haven for forward-looking information under the Private Securities Litigation Reform Act of 1995. Numerous risks, uncertainties and other factors could cause actual results for Vista Outdoor to differ materially from the expectations described in such forward-looking statements, including the following: The effects of the COVID-19 pandemic on the operations of Vista Outdoor, the operations of our customers, and Suppliers and the general economic situation; general economic and business conditions in The United States and Vista Outdoor’s other markets outside The United States, including conditions that affect the level of employment, consumer confidence and spending, conditions in the retail environment and other economic conditions that affect the demand for our products and the financial health of our customers; Vista Outdoor’s ability to attract and retain key personnel and to maintain and develop its relationships with customers, suppliers and other business partners, including Vista Outdoor’s ability to obtain acceptable third party licenses; Vista Outdoor’s ability to adapt its products to changes in technology, market and customer preferences, including our ability to respond to changing consumer preferences from brick and mortar to online retail; Vista Outdoor’s ability to maintain and improve brand awareness and reputation; Use of social media by others to post negative comments about us and boycotts; Reductions or unexpected changes or our inability to accurately predict demand for ammunition, accessories or other outdoor sports and recreational products; Risks associated with sales of Vista Outdoor to major retail customers, including unexpected cancellations, delays, and other changes to orders; Supplier capacity bottlenecks, production stoppages, or quality or price issues that affect Vista Outdoor’s operating costs; Vista Outdoor’s competitive landscape; Risks associated with diversifying into new international and commercial markets, including regulatory compliance; Changes in current tariff structures; the delivery, availability and cost of raw materials and components; Increase in raw material, energy and production costs; Changes in laws, rules and regulations relating to Vista Outdoor’s business, such as: B. Federal and State Ammunition Regulations; Vista Outdoor’s ability to realize anticipated benefits from acquisitions and integrate acquired businesses; Vista Outdoor’s ability to execute on our strategic transformation plan, including our ability to realize the expected benefits from successful divestments of non-core brands and profitability improvement initiatives; Vista Outdoor’s ability to capitalize on growth opportunities in international and commercial markets; Foreign exchange rates and fluctuations in these rates; the outcome of contingencies, including those relating to litigation and other litigation relating to intellectual property, product liability, warranty liability, personal injury and environmental remediation; Risks related to cybersecurity and other industrial and physical security threats; Capital market volatility and availability of funding; Changes to accounting standards or guidelines; and changes in tax regulations or pronouncements. You are cautioned not to place undue reliance on any forward-looking statements that we make. Vista Outdoor assumes no obligation to update any forward-looking statements unless required by law. Please refer to Vista Outdoor’s filings with the Securities and Exchange Commission for more information about factors that could affect Vista Outdoor and any statements contained herein.
SOURCE Vista Outdoor Inc.