PALO
ALTO, Calif., July 6, 2022
/PRNewswire/ -- Altamont Capital Partners announced today that
it has entered into a definitive agreement to sell Fox Racing, a
leading global performance motocross, mountain bike and lifestyle
gear brand, to Vista Outdoor Inc. (NYSE: VSTO). Altamont originally
invested in Fox via majority recapitalization in 2014.
"Altamont has been proud to partner with the Fox Racing team to
build upon the legacy and leadership of the brand," said Altamont
Capital Partners Co-Founder and Managing Director Keoni Schwartz. "Altamont believes in making
purposeful, long-term investments that allow us to build strong
businesses through collaborative work with our partners. We are
grateful for the leadership of CEO Jeff
McGuane and all the efforts of the entire Fox Racing family.
We are proud of what we accomplished together over the course of
our partnership."
Kabir Mundkur, a Principal at
Altamont, added, "Fox Racing has long been recognized as an iconic
outdoor brand. We saw an opportunity to support continued
innovation, invest in strategic distribution and enhance brand
engagement. We are confident that Fox Racing is well positioned for
continued success in this next chapter of growth."
"Our partnership with Altamont has been crucial in strengthening
our brand, driving growth, and building on a successful legacy that
dates back to 1974," said Fox Racing CEO Jeff McGuane. "Altamont has been a great partner
supporting our business and our employees and has put us in a
position for continued success going forward. We're grateful to
Altamont for their support and excited for the future as part of
the Vista Outdoor family."
Through its partnership with Altamont, Fox Racing's projected
revenue will reach approximately $350
million in calendar year 2022. Fox Racing grew net sales by
a compound annual growth rate of approximately 20 percent from
calendar year 2019 to 2021 and is expected to exceed that number
this year. The terms of the sale were disclosed at $540 million with an additional $50 million in potential earnout. The transaction
is expected to close in the third quarter of calendar year
2022.
Robert W. Baird & Co. acted as financial advisor and Ropes
& Gray provided legal advice to Fox Racing and Altamont Capital
Partners on the transaction. Morgan Stanley & Co. LLC served as
financial advisor and Reed Smith LLP served as legal advisor to
Vista Outdoor in connection with the transaction.
About Altamont Capital
Partners
Altamont Capital Partners is a private investment firm based in
the San Francisco Bay Area with
more than $4.5 billion of assets
under management. Altamont is focused on investing in middle-market
businesses where it can partner with leading management teams to
help its portfolio companies reach their full potential. The firm's
principals have significant experience building business success
stories across a range of industries, including financial services,
healthcare, business services, consumer/retail, and
industrials.
About Fox Racing
Since 1974, when Geoff Fox first
introduced the world to our iconic logo, Fox Racing has been all
about family. Not just in name—a legacy that continues to this
day—but the idea of celebrating and sharing the passion of life on
two wheels with the world. This is what drives us, inspires us, and
keeps us close. Because "skulk" is more than just a word for a
family of foxes—it's the adventure, the fidelity of friends, and
everything that happens along the way.
About Vista Outdoor Inc.
Vista Outdoor (NYSE: VSTO) is the parent company of more than
three dozen renowned brands that design, manufacture and market
sporting and outdoor products. We serve a broad and diverse range
of consumers around the globe, including outdoor enthusiasts,
golfers, cyclists, backyard grillers, campers, hunters,
recreational shooters, athletes, as well as law enforcement and
military professionals. Our reporting segments, Outdoor Products
and Sporting Products, provide these consumers with a wide range of
performance-driven, high-quality and innovative outdoor and
sporting products. Our operating model leverages shared resources
across brands to achieve levels of excellence and performance that
would be out of reach for any one brand on its own. Brands include
Remington Ammunition, Bushnell, CamelBak, Bushnell Golf, Foresight
Sports, Fiber Energy Products, Bell Helmets, Camp Chef, Giro,
QuietKat, Stone Glacier, Federal Ammunition and more. Vista Outdoor
products are sold at leading retailers and distributors across
North America and worldwide. For
news and information, visit our website at
www.vistaoutdoor.com.
Media Contact:
Greg Blair
greg@narrativedc.com
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SOURCE Altamont Capital Partners