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Vista Outdoor Inc. has announced plans to separate its Outdoor Products and Sporting Products segments into two independent, publicly-traded companies.
The company expects to create these companies through a tax-free spin-off of its Outdoor Products segment to Vista Outdoor shareholders.
Following the separation, the company said its Outdoor Products segment will be an industry-leading platform of outdoor brands including CamelBak, Bell, Giro, Camp Chef, Bushnell, Bushnell Golf, Foresight Sports, Stone Glacier and QuietKat. As an independent company, Sporting Products will continue to focus on ammunition categories through brands including Federal, Remington, CCI, Speer, Estate Cartridge and Hevi-Shot.
Chris Metz, chief executive officer of Vista Outdoor, said: “Over the past few years, we’ve made significant progress executing on our strategy to grow our leading portfolio of brands, driving operational efficiencies and delivering value to our shareholders.
“As a result of our efforts, we have built strong businesses that are well-positioned for continued growth and success as independent companies. As a result of the separation, our Outdoor Products and Sporting Products businesses will have resources, management teams and capital allocation priorities tailored to their respective strategic goals.
“We are confident that this increased focus will better allow each company to deliver long-term value for its shareholders, employees, customers and other stakeholders. The Centers of Excellence we have built will reside within the Outdoor Products business and continue to provide meaningful industry differentiation.”
Outdoor Products, which the company said will be renamed at a later date, will serve consumers in a diverse and fast-growing set of categories, representing an estimated $30 billion domestic market in its core and immediately adjacent end markets, with an estimated total global addressable market in excess of $100 billion.
Outdoor Products will be led by Metz as chief executive officer and Sudhanshu Priyadarshi as chief financial officer, following completion of the separation. The other members of the Outdoor Products leadership team will be announced at a later date. It will be headquartered in Bozeman, Montana.
Michael Callahan, chairman of the Board of Directors, added: “Following a thorough assessment of Vista Outdoor’s businesses, operations and value creation opportunities, the Board determined that a spin-off of its Outdoor Products business would unlock significant value.
“We are committed to working together through this transformative process to ensure that each company is optimized with the right teams and resources in place so that it can continue to deliver innovative, quality products that enhance outdoor experiences and create value for its shareholders.”
Following the spin-off, Sporting Products, which will also be renamed at a later date, will continue to be a manufacturer of ammunition, with brands including Federal, Remington, CCI, Speer, Estate Cartridge and Hevi-Shot. Jason Vanderbrink, who is currently president of Sporting Products, will be appointed chief executive officer following completion of the separation. The other members of the Sporting Products leadership team will be announced at a later date. Sporting Products will continue to be headquartered in Anoka, Minnesota.
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Vista Outdoor anticipates that the transaction will be in the form of a distribution to its shareholders of 100% of the stock of Outdoor Products, which will become a new, independent publicly-traded company. The distribution is intended to be tax-free to U.S. shareholders for U.S. federal income tax purposes.
The company said it currently expects the transaction will be completed in calendar year 2023.
