Vista Outdoor Inc. announced that it has entered into a definitive agreement to acquire San Diego, CA-based Foresight Sports, a maker of golf simulators, for $474 million.
Foresight Sports is a vertically integrated engineering and manufacturing company that produces launch monitors, simulators, performance/entertainment software, and smart mobility solutions for on- and off-course golf activities and a other sports and games.
“The addition of Foresight Sports immediately positions Vista Outdoor as one of the top technology players in the golf industry. Foresight Sports is the industry leader in golf technology and launch monitor adoption, and I am pleased to welcome their team of over 150 dedicated employees to Vista Outdoor,” said Vista Outdoor CEO Chris Metz. “Together under the same roof, Bushnell Golf and Foresight Sports will elevate their brands’ strengths, engage and expand into new segments of the industry and drive growth and brand awareness at an unprecedented scale. With more than 36 million golf participants in the U.S. alone, combined with growth in international, digital, and off-course settings, Vista Outdoor is well-positioned as a leader in golf data collection, hardware development, game improvement, and accuracy.”
Vista Outdoor said “Foresight Sports has the most launch monitors and golf simulation solutions in retail stores, driving ranges, commercial facilities, and homes worldwide. The Foresight Sports GCQuad launch monitor has been awarded Golf Digest’s Editors’ Choice Award for Best Launch Monitor for four consecutive years, and the product has become the launch monitor of choice for PGA Tour players, golf retailers and manufacturers, coaches and fitters than any other technology. Beyond launch monitor technology, the company’s Sim-In-A-Box line of golf simulators represents a new category of compact, affordable indoor golf solutions that have within two years attained a leading share of the global simulator market.”
Earlier this year, Vista Outdoor brand Bushnell Golf entered into an exclusive domestic partnership with Foresight Sports to bring its Launch Pro monitor technology to the everyday golfer this Fall.
“Foresight Sports is early in the market penetration curve and their products, software and technology are poised to further disrupt the golf industry. Our financial stability, broad distribution and Centers of Excellence will immediately support their operations and drive accelerated growth,” said CFO Sudhanshu Priyadarshi. “The strength of our balance sheet, combined with efficient capital deployment, enabled us to seize this opportunity to acquire a fast-growing, high margin outdoor products business at an attractive multiple. The Foresight Sports acquisition will drive gross margin expansion and accelerate our trajectory towards long-term higher operating margins. The recurring nature of their software and services products create sticky consumer relationships that we expect will expand our revenue, data collection and performance capabilities.”
Proposed Transaction Details
- Vista Outdoor has agreed to pay a gross purchase price of $474 million, subject to certain customary closing adjustments and not including contingent incentives of up to $25 million, upon the achievement of certain net sales targets.
- The gross purchase price includes a net present value of roughly $60 million in future tax benefits.
- For the calendar year 2021, Foresight Sports’ full-year net sales and adjusted EBITDA are expected to be approximately $100 million and $50 million, respectively.
- Vista Outdoor expects the transaction to be immediately accretive to earnings, excluding transaction and transition costs.
- Vista Outdoor expects to use cash on hand and available liquidity under its asset-based revolving credit facility, which is currently undrawn, to complete this transaction.
- Assuming satisfaction of customary closing conditions, Vista Outdoor expects to close the transaction in the third fiscal quarter of FY 2022.
PricewaterhouseCoopers Corporate Finance LLC served as financial advisor and Gunderson Dettmer, LLP served as legal advisor to Foresight Sports.
Reed Smith LLP served as legal advisor to Vista Outdoor in connection with the transaction.
Photo courtesy Vista Outdoor