Vista Outdoor's Revelyst to be acquired by Strategic Value Partners
Strategic Value Partners (SVP) is set to acquire Revelyst, a segment of Vista Outdoor Inc, in a deal that promises to accelerate growth and expand resources for the outdoor gear maker.
Transaction snapshot
Deal value: US$1.125 billion (A$1.67 billion)
Deal multiples: N/A
Deal type: All-cash acquisition
Investors: Strategic Value Partners
The transaction is contingent on Vista Outdoor's separate US$2.225 billion (A$3.30 billion) deal with Czechoslovak Group, which still needs stockholder approval. The Revelyst acquisition is expected to close by January 2025, subject to regulatory approvals and other closing conditions.
Revelyst, known for its high-quality outdoor gear brands, has recently consolidated its operations into three platforms:
Revelyst Adventure Sports in Irvine, California
Revelyst Outdoor Performance in Bozeman, Montana
Revelyst Precision Sports Technology in San Diego
This restructuring is part of Revelyst's GEAR Up transformation initiative, which aims to better meet consumer demand and improve supply chain efficiency.
The acquisition by SVP is expected to help Revelyst capitalise on the growing demand for outdoor activities and gear. By leveraging SVP's resources and network, Revelyst aims to unlock new opportunities and drive margin expansion across its brand portfolio.
Eric Nyman, CEO of Revelyst, expressed optimism about the partnership, stating it would strengthen the company and create more opportunities for innovation and product delivery.
David Geenberg, Head of North American Corporate Investments at SVP, highlighted Revelyst's recent market share gains and expressed confidence in accelerating the company's success.
The deal is part of a larger transaction involving Vista Outdoor, which is also selling its ammunition business Kinetic Group to Czechoslovak Group for US$2.225 billion (A$3.30 billion). Together, these deals represent a total enterprise value of US$3.35 billion (A$4.97 billion) for Vista Outdoor.
