Vista Outdoors divests Savage brand for $170M

[OlongJohnson]

https://www.thefirearmblog.com/blog/...ista-outdoors/

ANOKA, Minn., July 8, 2019 /PRNewswire/ — Vista Outdoor Inc. (“Vista Outdoor”) (NYSE: VSTO) announced today that it has completed the sale of the legal entity operating its Savage Arms and Stevens firearms brands to a financial buyer for a total purchase price of $170 million, comprised of $158 million paid at closing and $12 million to be paid upon maturity of a five-year seller note issued by the buyer to Vista Outdoor in connection with the transaction.

...

“Divesting our Savage brand was a key aspect of our transformation plan,” said Chris Metz, Chief Executive Officer of Vista Outdoor. “While it was a difficult decision to sell such an iconic brand, I remain confident that this was the correct choice to help Vista Outdoor grow in those categories where we can have leadership positions. Savage is a fantastic business, and it deserves to continue to evolve into other firearms categories. At this time, however, we simply do not have the resources to transform Savage into the full-service firearms company that it deserves to be and, therefore, we determined the brand would be better off with a different owner. We’re excited to see Savage reach its full potential under new ownership.”

...

“The Savage acquisition helped create Vista Outdoor, and we’re grateful for all the success the brand brought to our company over the past six years,” said Metz. “However, this divestiture now gives our ammunition brands flexibility to work with any industry partner to create the best products and meet our consumers’ needs.”

Lots of potential angles on this. So, rather than talking out my arse, I'll simply note I hope this goes better for Savage than it did for Big Green, and that the investors are serious about making it work, rather than just bleeding it for as much cash as possible until it finally dies.

Maybe @P.E. Kelley is able to come in and tell us something we don't know.

[paherne]

I read somewhere that the current executives of the company bought it. If so, that's a good thing.

[ragnar_d]

Lots of potential angles on this. So, rather than talking out my arse, I'll simply note I hope this goes better for Savage than it did for Big Green, and that the investors are serious about making it work, rather than just bleeding it for as much cash as possible until it finally dies.

The biggest difference is that the investment group that purchased Savage is being headed up by the current CEO and management. Remington was bought up by an investment group that amounts to corporate vampires. I’ve got hopes that Savage will be able to keep up the good work.

Maybe @P.E. Kelley is able to come in and tell us something we don't know.

FWIW, Team Savage put out a statement on the same day it was announced Vista had sold off Savage:
http://www.thetacticalwire.com/relea...f-957973266d9b



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[SecondsCount]

Savage has just as many issues that Remington does except they haven't introduced any mediocre pistols.