BOZEMAN, Mont. (BRAIN) — Vista Outdoor made a public filing with the Security and Exchange Commission Tuesday, revealing details of its plan to spinoff its outdoor sports brands into a new company separate from its ammunition business.
The company said it expects to complete the spin-off in the fourth quarter of this calendar year.
It said it will reveal a name for the new company soon. For now its filings, including the Form 10 filing for the separation, are being made under the name Outdoor Products Spinco Inc. Vista Outdoor revealed last month that its ammunition business will be called The Kinetic Group, which will be traded on the NYSE under the ticker symbol “HUNT.”
The spin-off company will include 41 brands including CamelBak, Camp Chef, Bushnell, Bushnell Golf, Foresight Sports, Fox Racing, Bell, Giro, Blackburn, QuietKat and Simms Fishing. It will be headquartered in Bozeman, Montana, and led by Eric Nyman, who joined Vista Outdoor as CEO of the business segment on Aug. 21.
"Outdoor Products will be well-positioned to deliver sustainable and profitable growth to shareholders. Outdoor Products’ capital allocation strategy will prioritize organic growth and internal investment in new product development, marketing and expanded e-commerce and international sales, opportunistic share repurchases and strategic acquisitions of outdoor businesses in existing and adjacent spaces," the company said.
The Form 10 included a CPA's report on Fox Holdco, Inc., the parent company of Fox Racing, which Vista Outdoor acquired last July for $540 million. The report shows that then-privately held business had revenues of $292.3 million in 2021, up from $205.1 million in 2020. The income includes royalties from third-party companies that buy products from Fox's contracted factories under license agreements with Fox. The royalties were $680,000 in 2021 and $358,000 in 2020. Fox Holdco's income before taxes was $10.5 million in 2021 and $11.1 million in 2020.
