- Vista Outdoor ( NYSE: VSTO ) said Wednesday it will acquire Simms Fishing Products for $192.5M.
- The purchase price includes a net present value of ~$20M in future tax benefits.
- VSTO expects the deal to be accretive to earnings, excluding transaction costs, transition costs and inventory step-up, in FY24.
- VSTO will finance the deal via an existing ABL credit facility.
- The deal is expected to close in Q2 FY23.
- After the deal closes, VSTO's leverage ratio is expected to be ~1.6x, well within its target leverage ratio of 1-2x.
- VSTO expects to de-lever to ~1.5x by the end of FY23.
- Once the deal closes, VSTO does not anticipate additional material acquisitions prior to the separation.
- Simms CEO Casey Sheahan will continue to lead day-to-day operations of the fishing brand.
- The current Simms management and existing employees also will remain in place.
- Simms will be part of VSTO's outdoor products segment and will be included in the new outdoor products firm once the separation of its 2 segments is complete .
For further details see:
Vista Outdoor to acquire Simms Fishing Products for $192.5M