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Vista sells Savage & Stevens firearms brands

Discussion in 'General Gun Discussions' started by hso, Jul 13, 2019 at 1:31 PM.

  1. hso

    hso Moderator Staff Member

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    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.

    The sale is part of Vista Outdoor’s previously announced transformation plan, which outlined the intent to reshape the company’s portfolio by cutting costs, consolidating leadership, paying down debt, and divesting certain brands, including both its eyewear brands and firearms brands, in order to pursue growth in product categories where the company believes it can be market leaders. As the company now looks forward, the focus is on ammunition, hunting and shooting accessories, hydration bottles and packs, outdoor cooking products, and cycling/ski helmets and accessories.

    “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.”

    Savage was acquired by Vista Outdoor’s predecessor, ATK, in 2013. ATK’s sporting business – which included Savage, Bushnell, Federal and CCI Ammunition, and dozens of other hunt/shoot accessories brands, spun off in 2015 to become Vista Outdoor.

    “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.”

    At closing, Vista Outdoor received gross proceeds from the divestiture of $158 million. Vista Outdoor will use the net after-tax proceeds of the sale to repay outstanding indebtedness.

    “Reducing our debt is a key part of turning around our business,” said Metz. “Selling Savage and further reducing our overall leverage will improve our financial flexibility and better position the company for long-term growth. We’ve now rebuilt the company’s foundation to provide a more stable base upon which to grow. We have a portfolio of brands that all have the potential to be strong, market leaders in their respective categories and I’m proud of my team’s efforts in reshaping the portfolio over the course of the past year.”
     
  2. JWF III

    JWF III Member

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    So any news on who bought them? Let’s hope it’s not Freedom Group...

    Wyman
     
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  3. Speedo66

    Speedo66 Member

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    Also hope it's not another private equity group who strangles it with debt, pulls out as much as they can, penny pinches the product until it loses sales and then leaves it turning in the wind......

    Hate to see venerable brands like Savage and Stevens disappear like so many others have.
     
  4. rust collector
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    rust collector Contributing Member

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  5. ohihunter2014

    ohihunter2014 Member

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    Take it back right now!! Lol

    If those jackwagons bought savage I’m buying the new rifle I’ve been eyeing before they turn it into a mess like they did to marlin!
     
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  6. NIGHTLORD40K

    NIGHTLORD40K Member

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    Maybe now they will jump back into handguns?

    I still have a $1000 check all filled out for a new M1907 .45.........
    17069_1183_2_lg.jpg
    Id prolly throw down 5 or 6 bills for a new M99 in .357 or .22 too!
     
  7. D.B. Cooper

    D.B. Cooper Member

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    Looks like REI won out after all.
     
  8. D.B. Cooper

    D.B. Cooper Member

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    Is it just me, or is $170 million just not that much money? I mean, with decent lottery win, even I could have written that check. (and would have)
     
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  9. NIGHTLORD40K

    NIGHTLORD40K Member

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    I was thinking that too.
     
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  10. nipprdog

    nipprdog Member

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    https://www.guns.com/news/2019/07/09/savage-arms-sold-to-investment-group-for-170-million

     
  11. P5 Guy

    P5 Guy Member

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    One wonders why Michael Bloomberg isn't buying up firearms manufacturers?
     
  12. Deus Machina

    Deus Machina Member

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    Because he wants to spend his money on an image, not doing things the easy but more expensive way.
     
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  13. Ks5shooter

    Ks5shooter Member

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    Just bought a Savage BVSS in 22-250 ,,,,,,well made fit and finish. If they keep this quality up they will be around for a long time.:thumbup::thumbup:
     
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  14. NIGHTLORD40K

    NIGHTLORD40K Member

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    The only newish Savages Ive tried were a MK2 single shot and a .223 Axis. Both were accurate and had excellent triggers, but the crappy/expensive Axis magazine was a deal breaker.

    The 10/110 platform is still a solid performer, but I dont know that it offers any advantages over its rivals except for the quick-change barrels.

    I couldnt tell you off the top of my head what other products they still make. Is the BA still a thing?

    I might be dreaming about them reviving their classic handguns, but a reissue of the 99 in .22/.357/.223/6.5/.308 would sell like hotcakes, IMO. Sure give the budget model polymer stocks and MIM guts, fine. How about a stainless model? Oooohh, ahhhhhhh.......
     
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