WESTPORT, Conn. (BRAIN) — Compass Diversified Holdings has agreed to sell CamelBak Products LLC to Vista Outdoor Inc. for about $412.5 million.
Vista, based in Utah, owns 30 brands in the shooting sports and outdoor sports markets, including Bushnel, Cébé and Bollé. Vista is publicly traded on the NYSE under the VSTO symbol.
Compass acquired CameBak in 2011. Compass said proceeds from the sale will be used to repay all outstanding debt under its revolving credit facility, with the balance increasing cash on the company's balance sheet. Compass anticipates recording a gain on the sale of CamelBak ranging between $140 million and $160 million during the quarter that ends Sept. 30.
"Over the past four years, we have enjoyed working closely with CamelBak's management team, led by its CEO, Sally McCoy, and are proud of our accomplishments together," said Alan Offenberg, CEO of Compass Diversified Holdings. "CODI's strategic investments enabled CamelBak to increase consumer penetration levels, build cash flows and generate greater organic growth. CamelBak has established itself as the global leader in personal hydration products, and we wish the company and Vista Outdoor continued success."
Mark DeYoung, Vista Outdoor's chairman and CEO, said, "The acquisition of CamelBak greatly advances Vista Outdoor's strategy to grow and strengthen our leading position in the outdoor recreation industry."
"CamelBak fortifies our presence in the mainstream individual outdoor recreation market, creating an opportunity to increase the scale, reach and growth of several current offerings through an expanded global sourcing capability and a broadened retail distribution network. With limited overlap between our key customers, this acquisition creates significant cross-selling opportunities, increased channel presence and access into expanded domestic and international markets. As a market leader and preferred partner, Vista Outdoor can leverage the technical expertise of CamelBak to deliver innovative solutions and quality product offerings that will create value for our shareholders and customers."
Compass continues to own approximately 41 percent of the common stock of Fox Factory Holding Corp., its former subsidiary that was spun off in an IPO in 2013.
