CLEARFIELD, Utah (BRAIN) — Vista Outdoor Inc. has agreed to buy BRG Sports, Inc.'s Action Sports division, which includes Bell, Giro, C-Preme and Blackburn. Vista, still little known in the bike world, bought CamelBak last year and also owns the Bollé brand, in addition to a variety of hunting and fishing brands. Vista did not buy BRG's Riddell helmet brand.
Vista said its new brands will be integrated into the company's Outdoor Products segment, and will better balance its brand list 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," said Vista Outdoor chairman and CEO Mark DeYoung.
"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."
Vista is traded on the New York Stock Exchange under the VSTO symbol. The transaction is subject to regulatory approvals and customary closing conditions. Vista Outdoor said it expects to close on the deal in the next 30 to 60 days.
In addition to the $400 million payment, Vista Outdoor will pay additional contingent consideration if incremental profitability growth milestones are met within BRG's powersports product line. It said it expects the newly acquired brands to generate sales of about $350 million in 2016 and said the purchase price is approximately 10 times the expected 2016 EBITDA for the acquired brands.
BRG Sports' executive chairman and CEO Terry Lee said, "Vista Outdoor is a perfect new home for the Action Sports division as they join an expanding outdoor sports and recreation company comprised of market-leading brands. Under Vista Outdoor ownership, we are confident Bell, Giro, C-Preme and Blackburn will continue to drive product innovation and lead the industry. We know they will continue to foster the strong people and product culture that makes these brands great."
The acquisition will include more than 600 employees.