With RevZilla joining forces with Cycle Gear and Motorcycle USA shutting down this week, it has been a busy month for the business side of the motorcycle industry. Now we have more news to report, as BRG Sports, owner of the Bell Helmets brand, has sold its action sports business to Vista Outdoor.
The move adds some of the BRG Sport brands: Bell Helmets, Giro, Blackburn, and C-Preme, into Vista Outdoor already extensive lineup of impressive outdoor and shooting brands, such as Bollé, Bushnell, CamelBak, and Federal Premium.
According to their press release, BRG Sports sold the brands involved for $400 million in cash, plus an earn-out related to the future performance of the powersports business, subject to working capital adjustment, of course.
That is a tidy sum for the suite of brands that Vista Outdoor is acquiring through BRG Sports, and it will be interesting to see what the outdoor powerhouse does with these new acquisitions.
Of particular note will be the performance of Bell Helmets. As we can see from the deal structure quoted in the press release, there is some performance clauses concerning Bell Helmets post-acquisition, which will dictate that final price that Vista Outdoor will pay to BRG Sports.
Looking Vista Outdoor’s house of brands, Bell Helmets looks like the redheaded stepchild in the group, whereas BRG Sports’s other brands: Giro, Blackburn, and C-Preme will dovetail nicely with Vista’s current offerings.
“We are very proud of our employees and the strong cycling, snow and powersports business we’ve built. The Bell and Giro brands have set the standard for innovation and excellence for many years,” said BRG Sports Executive Chairman and CEO Terry Lee. “We are confident that this business will continue to excel and serve as an industry leader under Vista Outdoor ownership.”
BRG Sports will use the proceeds from the transaction to pay down its debt, strengthen the company’s balance sheet, and “pursue strategic growth initiatives” that will benefit the company’s sole remaining brand, Riddell.
Source: BRG Sports
Comments