Vista Outdoor starts divestiture from some brands
Eyewear brands are first. Is Savage Arms up for sale next?
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Vista Outdoor Inc. (NYSE: VSTO) is selling off its eyewear brands, Bollé, Cébé and Serengeti.
An entity controlled by a significant European private equity fund entered into a definitive agreement with Vista Outdoor, according to a company news release.
Earlier this year, Vista Outdoor announced that it’s focusing resources on growing its core product categories of ammunition, hunting and shooting accessories, hydration bottles and packs (CamelBak), and outdoor cooking products (Camp Chef).
“We are pleased to have successfully reached an agreement to sell our eyewear and safety business at an attractive price,” said Chris Metz, CEO of Vista Outdoor. “The business will have the opportunity to reach its full potential under new ownership. This divestiture is the first step in our transformation plan and will be the first of several potential asset sales that will significantly reduce Vista Outdoor’s leverage and provide additional resources to for us to reinvest in our core businesses.”
The refocus follows a year of turmoil after consumers boycotted outdoor brands under Vista Outdoor, which also owns a manufacturer of assault-style rifles.
Vista Outdoor also said earlier this year that it plans to divest from its gun brands.
“We are now turning our efforts to the rest of our divestiture plan as previously communicated in May,” said Metz. “We are excited to build on this momentum and expect to provide further updates on this process during our first quarter earnings call in early August.”
Will Savage Arms, which was at the heart of the debate, be sold off next?
