- Vista Outdoor ( NYSE: VSTO ) is acquiring Irvine, Calif.-based Fox Racing, a global icon in performance motocross, mountain bike and lifestyle gear for adventure seekers for $540M, with the potential for an additional $50M earnout based on Fox Racing's financial performance.
- Fox Racing grew net sales by a compound annual growth rate of approximately 20% from calendar year 2019 to 2021 and is expected to grow in excess of that in calendar year 2022.
- CEO comment: "With the acquisition of Fox Racing, we are continuing the successful implementation of our strategy to use accretive acquisitions to expand our leadership position and ability to capitalize on long-term growth opportunities in outdoor recreation. The Fox Racing acquisition meets all of our financial and strategic acquisition criteria, even before taking into account potential benefits from combining Fox Racing with our existing business. I am pleased that we have been able to continue to add category-leading brands like Fox Racing to our portfolio while maintaining a strong balance sheet and reinvesting in our existing business to drive organic growth."
- CEO of Fox Racing, Jeffrey McGuane will continue to lead the company following the closing of the acquisition.
- Fox Racing will be part of company's Outdoor Products segment and will be included in the new Outdoor Products Company upon the completion of the previously announced separation .
- VSTO down about 38% on YTD basis.
For further details see:
Vista Outdoor to acquire Fox Racing for $540M plus $50M conditional earnout