Vista Outdoor Inc. cuts its forecast and announced an agreement to sell its sporting-products business for $1.91 billion.
(Bloomberg) — Vista Outdoor Inc. cuts its forecast and announced an agreement to sell its sporting-products business for $1.91 billion.
Earnings excluding some items are now expected to be $3.65 to $4.05 per share for the fiscal year, down from a July forecast range of $4.50 to $5. Sales are projected to be $2.725 billion to $2.825 billion, down from the prior view of $2.85 billion to $2.95 billion. Vista Outdoor’s market capitalization is $1.6 billion.
Vista is selling its sporting-products business to Czechoslovak Group AS in an all-cash deal subject to custom closing conditions, the Anoka, Minnesota-based company said Monday in a statement. It includes on ammunition brands such as Federal, Remington, CCI, Speer, Estate Cartridge and HEVI-Shot. The deal is expected to close in 2024.
The new name of the remaining company will be Revelyst Inc. and will trade under the ticker GEAR. It brands will include Fox, Bell, Giro, CamelBak, Camp Chef, Bushnell, Simms Fishing, Foresight Sports and Bushnell Golf.
Vista Outdoor shares fell 15% to $27.80 as of 9:51 a.m. New York time, poised for its biggest decrease since May 2020. At the current price, Vista Outdoor is set to shed $290 million from its $1.6 billion in market capitalization.
This story was produced with the assistance of Bloomberg Automation.
(Updated share moves in last paragraph)
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