Acquisition expands Vista Outdoor’s revenue into higher growth, less cyclical Outdoor Products markets
– Foresight Sports adds an innovative business to our Outdoor Products portfolio that is expected to significantly exceed Vista Outdoor’s long-term growth and operating margin targets
– Acquisition positions Vista Outdoor as the technology leader in the golf industry and aligns with Vista Outdoor’s strategy of acquiring market leading brands where Vista Outdoor can immediately add value
– Foresight Sports expected to be immediately accretive to earnings, excluding transaction and transition costs
– Vista Outdoor’s leverage ratio remains below 1.5x and is expected to be below 1.0x at FY 2022 fiscal year end
Vista Outdoor Inc. (NYSE: VSTO), a leading global designer, manufacturer, and marketer of products in the outdoor sports and recreation markets, today announced the successful closing of its acquisition of Foresight Sports. The acquisition brings two iconic golf brands under the same roof. Together, Foresight Sports and Bushnell Golf will elevate each brand’s respective strengths, engage new users, expand into new segments of the golf technology market and drive growth and brand awareness at unprecedented scale.
“It is a pleasure to welcome the team from Foresight Sports to the Vista Outdoor family,” said Vista Outdoor Chief Executive Officer Chris Metz. “Their hard work and pioneering innovation have permanently changed the golf tech landscape, and when combined with the strength of our Bushnell Golf brand, elevates Vista Outdoor to a market leader in this exciting category. Our portfolio now includes market-leading solutions in hardware development, golf data collection, game improvement, gamification and golf accuracy. The market growth opportunities in this space, combined with its impressive operating margins, make our combined golf business a powerful financial engine for delivering value for Vista Outdoor’s shareholders now, and into the future. The acquisition also further bolsters our reputation as the acquirer of choice in the outdoor industry.”
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 facilities and homes worldwide. The Foresight Sports’ GCQuad launch monitor has been awarded Golf Digest’s Editors’ Choice Award for Best Launch Monitor for four consecutive years, and the product has become the launch monitor of choice for more PGA Tour players, top golf retailers and manufacturers, and coaches and fitters than any other technology. Beyond launch monitor technology, the company’s Sim-In-A-Box line of golf simulators represents an entirely new category of compact, affordable indoor golf solutions that in just two years have commanded a leading share of the global simulator market.
Earlier this year, Vista Outdoor brand Bushnell Golf entered into an exclusive domestic partnership with Foresight Sports to bring pro-level launch monitor technology to the everyday golfer. The Launch Pro, a personal launch monitor built on the industry’s best and most widely accepted technology, will be available for purchase at BushnellGolf.com and select golf retail outlets nationwide this Fall.
Details on the Transaction
Vista Outdoor paid a gross purchase price of $474 million, subject to certain customary closing adjustments and not including contingent incentives of up to $25 million that are payable upon the achievement of certain net sales targets. The gross purchase price includes a net present value of roughly $60 million in future tax benefits. For calendar year 2021, Foresight Sports’ full year net sales and adjusted EBITDA are expected to be approximately $100 million and $50 million, respectively. Vista Outdoor expects the transaction to be immediately accretive to earnings, excluding transaction and transition costs.
Vista Outdoor used cash on hand and available liquidity under its asset-based revolving credit facility to complete the transaction.
PricewaterhouseCoopers Corporate Finance LLC served as financial advisor and Gunderson Dettmer LLP served as legal advisor to Foresight Sports.
Reed Smith LLP served as legal advisor to Vista Outdoor in connection with the transaction.
About Foresight Sports
Foresight Sports develops the most advanced and most trusted performance analysis solutions in the golf industry. The brand is responsible for the Tour-dominating GCQuad launch monitor, and the game’s all-time best-selling launch monitor, the GC2. Outdoors or indoors, from cutting-edge launch monitors and software to the ultimate virtual golf experience, Foresight Sports is your total technology solution. For more information, visit www.foresightsports.com.
About Vista Outdoor Inc.
Vista Outdoor is a leading global designer, manufacturer, and marketer of outdoor recreation and shooting sports products. We operate through two reportable segments: Shooting Sports and Outdoor Products. Together, our segments serve the outdoor sports and recreation markets through a diverse portfolio of well-recognized brands that provide consumers with a wide range of performance-driven, high-quality, and innovative products. Brands include Remington Ammunition, Bushnell, CamelBak, Bushnell Golf, Bell Helmets, Camp Chef, Foresight Sports, Giro, QuietKat, Federal and more. Vista Outdoor products are sold at leading retailers and distributors across North America and worldwide. For news and information, visit our website or investor relations page and follow us on Twitter.