(Bloomberg) -- Vista Outdoor Inc. plans to separate its outdoor and sporting products segments into two publicly traded companies.
The company announced the tax-free spinoff of its outdoor products business in a statement Thursday that confirmed an earlier Bloomberg News report.
The new outdoor products company's brands will include CamelBak, Bell, Giro, Camp Chef, Bushnell, Bushnell Golf, Foresight Sports, Stone Glacier and QuietKat, according to the statement. The sporting products business will focus on ammunition with brands such as Federal, Remington, CCI, Speer, Estate Cartridge and HEVI-Shot.
The decision to separate the company mirrors the recent trend of corporate simplification that has seen U.S. giants including AT&T Inc., General Electric Co. and Johnson & Johnson announce plans to spin off or sell large parts of their empires.
“We've made significant progress executing on our strategy to grow our leading portfolio of brands, driving operational efficiencies and delivering value to our shareholders,” Vista Outdoor Chief Executive Officer Chris Metz said in a statement. “We have built strong businesses that are well-positioned for continued growth and success as independent companies.”
Metz will become CEO of the outdoor products business after the separation, while Jason Vanderbrink will be appointed CEO of the sporting products company.
For More: Vista Outdoor Moves Indoors With Golf Gadgetry
Shares of Vista Outdoor, based in Anoka, Minnesota, have fallen 17% this year, compared with the 9.8% drop in the S&P 500. The company's shares rose 3.6% to $38.12 in New York trading Wednesday, giving it a market value of $2.1 billion.
Vista was spun off from Alliant Techsystems Inc. in 2015. Since then, its shares have gained only 11%.
The company also announced its full-year results Thursday, saying revenue rose 37% to more than $3 billion in the 12 months through March 31. Sporting products accounted for more than half of group sales. Vista forecast adjusted earnings per share for the 2023 financial year that beat average analyst estimates.
©2022 Bloomberg L.P.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
