FARMINGTON, UT - Vista Outdoor Inc. announced that will see its Bollé, Cébé and Serengeti eyewear brands for $158 million.
The company (NYSE: VSTO) said it has has entered into a definitive agreement for the sale to "an entity controlled by a significant European private equity fund."
The deal is "part of Vista Outdoor's previously announced strategic business transformation plan, designed to allow the company to focus resources on pursuing growth in its core product categories of ammunition, hunting and shooting accessories, hydration bottles and packs, and outdoor cooking products," according to a press release.
"We are pleased to have successfully reached an agreement to sell our eyewear and safety business at an attractive price," said Chris Metz, CEO of Vista Outdoor. "The business will have the opportunity to reach its full potential under new ownership. This divestiture is the first step in our transformation plan and will be the first of several potential asset sales that will significantly reduce Vista Outdoor's leverage and provide additional resources to for us to reinvest in our core businesses."
The purchase price "represents a premium to the EBITDA multiple paid for Bollé, Cébé and Serengeti as part of the Bushnell acquisition in 2013," according to the release.
Vista Outdoor expects to use proceeds of the sale to pay debt. The transaction is expected to close within 30 to 45 days, subject to customary closing conditions.
"We are now turning our efforts to the rest of our divestiture plan as previously communicated in May," said Metz. "We are excited to build on this momentum and expect to provide further updates on this process during our first quarter earnings call in early August."