Vista Outdoor has closed its acquisition of Fox Racing for $540 million, adding the extreme sports and lifestyle company to its portfolio of more than 30 sports and recreation brands.
Known for its motocross and mountain gear products, Fox Racing allows Vista Outdoor to expand its reach across the sports and outdoor recreation category as it strives to be “the acquirer of choice within the industry,” CEO Chris Metz told Front Office Sports earlier this year.
- The deal could increase by $50 million based on Fox Racing’s financial performance.
- Fox Racing saw net sales grow by a CAGR of 20% from 2019 to 2021.
- Sales are projected to grow another 20% in 2022.
Vista Outdoor acquired Fox Racing following favorable results in the company’s latest earnings report. Despite facing supply chain constraints and rising inflation, Vista Outdoor posted $803 million in sales in fiscal Q1 2023, a 21% increase compared to fiscal Q1 2022.
The Minnesota-based company’s sporting products segment generated $511 million in sales in fiscal Q1 2023 — up 40% year-over-year — while its outdoor segment saw sales reach $292 million during the quarter, a 2% decline compared to the same period the year prior.
Reels In Another
Vista Outdoor has also announced the acquisition of Simms Fishing Products for $192.5 million.
The deal provides Vista Outdoor with additional access to more than 55 million fishing participants nationwide. Simms will add roughly $110 million in net sales to Vista Outdoor.