Anoka-based Vista Outdoor Inc. is paying up to $590 million for popular California outdoor recreation brand Fox Racing.
Vista Outdoor, the parent company of 39 separate brands that design, manufacture and market sporting goods and outdoor products, announced Wednesday that it has entered into a definitive agreement to acquire Fox Racing, a high-performance motocross, mountain bike and lifestyle equipment brand. equipment.
The initial prize is $540 million, with the potential for an additional $50 million in earnings depending on Fox Racing’s financial performance this year. Vista Outdoor plans to complete the purchase in Q2 2023.
The acquisition is expected to be completed in the same year. Vista Outdoor plans to split into two separate public companies. One company will focus on outdoor recreation, the other on ammunition. Vista expects the split to be complete in 2023. The change is subject to final approval by the Vista Outdoor board of directors and other regulatory approvals. The ammunition company will remain headquartered in Anoka, while the outdoor products group will be headquartered in Bozeman, Montana.
That means the acquisition of Fox Racing would add the brand to Vista Outdoor’s outdoor product segment, which also includes brands like CamelBak, Stone Glacier and QuietKat. As an independent company, Vista Outdoors Sporting Products will focus on ammunition categories through brands such as Federal, Remington, CCI, Speer, Estate Cartridge and HEVI-Shot.
The acquisition of Fox Racing will expand Vista Outdoor’s existing portfolio of outdoor brands, Vista Outdoor CEO Chris Metz said in a press release. Following Vista Outdoor’s split into two companies, Metz is appointed CEO of Outdoor Products.
“The acquisition of Fox Racing meets all of our financial and strategic acquisition criteria, even before considering potential benefits from combining Fox Racing with our existing business,” Metz said in the press release.
Fox Racing CEO Jeffrey Mcguane, along with the rest of the brand’s executive team, will continue in their roles after the acquisition is complete.
According to the company’s description, Vista Outdoor serves a wide range of consumers around the world, including “outdoor enthusiasts, golfers, cyclists, barbecue grills, campers, hunters, recreational shooters, athletes, and law enforcement and military professionals.”
Vista Outdoor was spun off from Alliant Techsystems Inc. in 2014. Alliant Tech is an aerospace and defense company that was based in Minnesota until 2011. It is now headquartered in Arlington, Virginia.
In 2020, Vista Outdoor acquired a portion of the ammunition business of bankrupt, Alabama-based Remington Outdoor Company Inc. The purchase came a year after Vista Outdoor sold its own brand of firearms for $170 million as part of its broader “transformation plan.”