Vista Outdoor to acquire Simms Fishing Products for $192.5M

Jul. 27, 2022 4:56 PM ETVista Outdoor Inc. (VSTO)By: Jessica Kuruthukulangara, SA News Editor7 Comments
  • Vista Outdoor (NYSE:VSTO) said Wednesday it will acquire Simms Fishing Products for $192.5M.
  • The purchase price includes a net present value of ~$20M in future tax benefits.
  • VSTO expects the deal to be accretive to earnings, excluding transaction costs, transition costs and inventory step-up, in FY24.
  • VSTO will finance the deal via an existing ABL credit facility.
  • The deal is expected to close in Q2 FY23.
  • After the deal closes, VSTO's leverage ratio is expected to be ~1.6x, well within its target leverage ratio of 1-2x.
  • VSTO expects to de-lever to ~1.5x by the end of FY23.
  • Once the deal closes, VSTO does not anticipate additional material acquisitions prior to the separation.
  • Simms CEO Casey Sheahan will continue to lead day-to-day operations of the fishing brand.
  • The current Simms management and existing employees also will remain in place.
  • Simms will be part of VSTO's outdoor products segment and will be included in the new outdoor products firm once the separation of its 2 segments is complete.

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