Our planned separation of the Outdoor Products and Sporting Products segments into two new companies is off to a great start.
ANOKA, Minn. — Vista Outdoor Inc. ("Vista Outdoor") (NYSE: VSTO), the parent company of 39 renowned brands that design, manufacture and market sporting and outdoor products to consumers around the globe, this week held its annual Investor Day for institutional investors and analysts at the New York Stock Exchange, where the company provided some updates on its planned separation into two publicly traded companies in 2023.
Presenters included CEO Chris Metz, CFO Sudhanshu Priyadarshi and leaders from several of the company’s business units, including Jason Vanderbrink, President, Ammunition, and Vishak Sankaran, President, Outdoor Accessories. Executives began the event by providing more details of Vista Outdoor’s plan to split its Outdoor Products and Sporting Products segments into two independent, publicly-traded companies, a move announced in early May.
The separation is expected to create several compelling benefits, including enhanced strategic focus with supporting resources; tailored capital allocation priorities; strengthened ability to attract and retain top talent; compelling value for shareholders; and expanded strategic opportunities. Metz said progress is already being made on the separation, which is expected to occur in calendar year 2023.
“Our planned separation of the Outdoor Products and Sporting Products segments into two new companies is off to a great start,” Metz said. “The reaction to the news from our shareholders, as well as the consumer and trade press, was positive from the moment we announced the decision, and we are now full speed ahead on ensuring that this move will unlock value for all our stakeholders. In the meantime, it’s business as usual for Vista Outdoor and all our brands. Behind the scenes, however, we are working tirelessly to ensure a smooth transition to transform one company into two.”
Priyadarshi provided long-term financial guidance on the two segments once they are spun off from Vista Outdoor. The forecast for the Outdoor Products business calls for $2.5 billion to $3 billion in sales by fiscal 2025 end based on double-digit organic growth annually along with a 15-20% adjusted EBITDA margin.
And the forecast for the Sporting Products business calls for $1.8 billion to $2.0 billion in sales by fiscal 2025 end based on low-single digit organic growth annually along with an estimated 25% adjusted EBITDA margin.
Investor Day was about much more than the planned separation, however. The event also provided a showcase for Vista Outdoor’s brands and the innovative products they continually bring to market. On display outside the NYSE were the latest offerings from Camp Chef, Foresight Sports, QuietKat, Bushnell, Stone Glacier and more.
The presentation also showed how Vista Outdoor has added value to four of its recent acquisitions by releasing a M&A Scorecard. For example, since the Remington acquisition in late 2020, the brand’s revenue has grown nearly 2x to over $300 million. Since the HEVI-Shot acquisition in 2021, that brand’s revenue has grown more than 10% to around $21 million. Since the QuietKat acquisition in May 2021, the brand’s revenue is now on track to grow 3x by FY23 to around $50 million. And since the Foresight Sports acquisition in September 2021, that brand’s revenue is 25% higher than the acquisition run rate of $125 million-plus by FY23.
For anyone unable to attend in-person or virtually, an online archive of the webcast and presentation slides will be available at https://investors.vistaoutdoor.com/event-calendar and remain on the website for one year.
About Vista Outdoor Inc.
Vista Outdoor (NYSE: VSTO) is the parent company of more than three dozen renowned brands that design, manufacture and market sporting and outdoor products. We serve a broad and diverse range of consumers around the globe, including outdoor enthusiasts, golfers, cyclists, backyard grillers, campers, hunters, recreational shooters, athletes, as well as law enforcement and military professionals. Our reporting segments, Outdoor Products and Sporting Products, provide these consumers with a wide range of performance-driven, high-quality and innovative outdoor and sporting products. Our operating model leverages shared resources across brands to achieve levels of excellence and performance that would be out of reach for any one brand on its own. Brands include Remington Ammunition, Bushnell, CamelBak, Bushnell Golf, Foresight Sports, Fiber Energy Products, Bell Helmets, Camp Chef, Giro, QuietKat, Stone Glacier, Federal Ammunition and more. Vista Outdoor products are sold at leading retailers and distributors across North America and worldwide. For news and information, visit our website at www.vistaoutdoor.com.