Vista Outdoor has announced that it has completed the sale of its firearm brands, Savage Arms and Stevens for $170 million.
Vista Outdoor Inc. announced today that it has completed the sale of the legal entity operating its Savage Arms and Stevens firearms brands to a financial buyer for a total purchase price of $170 million, comprised of $158 million paid at closing and $12 million to be paid upon maturity of a five-year seller note issued by the buyer to Vista Outdoor in connection with the transaction.
The sale is part of Vista Outdoor's previously announced transformation plan, which outlined the intent to reshape the company's portfolio by cutting costs, consolidating leadership, paying down debt, and divesting certain brands, including both its eyewear brands and firearms brands, in order to pursue growth in product categories where the company believes it can be market leaders. As the company now looks forward, the focus is on ammunition, hunting and shooting accessories, hydration bottles and packs, outdoor cooking products, and cycling/ski helmets and accessories.
"Divesting our Savage brand was a key aspect of our transformation plan," said Chris Metz, Chief Executive Officer of Vista Outdoor.
"While it was a difficult decision to sell such an iconic brand, I remain confident that this was the correct choice to help Vista Outdoor grow in those categories where we can have leadership positions. Savage is a fantastic business, and it deserves to continue to evolve into other firearms categories. At this time, however, we simply do not have the resources to transform Savage into the full-service firearms company that it deserves to be and, therefore, we determined the brand would be better off with a different owner. We're excited to see Savage reach its full potential under new ownership."
Shortly thereafter, REI announced that they will resume business and orders with Vista Outdoor brands Giro, Bell, CamelBak, Blackburn and Camp Chef.
REI: "Today, we notified our merchants that we will resume orders with Giro, Bell, CamelBak, Blackburn and Camp Chef on the news that their parent company, Vista Outdoor, has secured a buyer for Savage Arms.
REI orders of Vista-owned brands have been on hold since March 2018. At that time, Vista Outdoor chose not to engage in the national conversation about common-sense gun safety solutions that followed the tragic mass shooting at Marjory Stoneman Douglas High School in Parkland, Florida.
REI does not sell guns or ammunition and does not oppose hunting or the Second Amendment, but we believe companies that profit directly from the sale of guns have a civic responsibility to engage in the national discussion about gun safety, as Dick’s Sporting Goods, Walmart, and others have done.
We understand and respect that our members and employees enjoy life outside in many ways—including hunting."
We previously reported that Vista Outdoor was looking to sell
off the Bell, Giro, and Blackburn brands. It now seems that may be much less of a priority as they are reportedly investing more into the brands and are looking to retain them for at least the near future.