By David Clucas
No rest for the weary. Vista Outdoor Inc. continued its acquisition spree within the outdoor industry, September 1, acquiring outdoor-cooking solutions brand Camp Chef for $74 million from privately owned Logan Outdoor Products LLC and Peak Trades, LLC.
The brand, which makes camp stoves, barbecue grills, pellet grills, smokers, fire pits and a full line of cast-iron cookware and accessories, is another iron in the fire for Vista’s Outdoor Products group, which it has been rapidly expanding within the past year to diversify from its mainstay shooting sports segment. Since July 2015, Vista Outdoor has acquired SUP brand Jimmy Styks, hydration leader CamelBak, bike-and-snow protection brands Bell, Giro, C-Preme and Blackburn.
“The Camp Chef transaction aligns with Vista Outdoor’s strategy to deliver long-term value through acquiring complementary, market-leading brands that will benefit from Vista Outdoor’s balance sheet, distribution network, and sales and marketing expertise,” said Chairman and Chief Executive Officer Mark DeYoung.
He praised Camp Chef’s entrepreneurial management team and nimble and responsive product development process, which has enable the company to continue to grow its market share in the outdoor cooking category.
“The brand serves many of our current consumers who are engaged in a wide variety of outdoor pursuits,” DeYoung said. “Acquiring Camp Chef strengthens our leadership position in outdoor recreation, allows us to enter the growing camping and outdoor cooking market, and the brand’s effective multi-product, multi-channel strategy increases our presence across both brick-and-mortar and e-commerce distribution platforms.”
Officials say the acquisition run isn’t over, yet, and the company recently restructured its Outdoor Products Group (including new leaders at CamelBak and Bell) into three sub groups of Outdoor Recreation, Sports Protection and Hunting and Shooting Accessories.
Vista Outdoor financed the purchase price paid at closing for Camp Chef ($60 million) using monies borrowed under its existing revolving credit facility and it expects to pay an additional $14 million on the first, second and third anniversaries of the closing date based on continued employment of key members of management as a compensation expense in future periods. Officials added that the effective purchase price is lower, “due to value created by certain tax assets resulting from the transaction and the deferred purchase price structure, leading to an effective multiple of approximately 6.4-times Camp Chef’s expected calendar year 2016 EBITDA.”
Vista Outdoor expects the acquisition to be slightly accretive to its fiscal-year 2017 earnings per share, including impacts associated with transaction expenses.
Camp Chef was founded in 1990 in Logan, UT, and has approximately 50 employees, led by President Ty Measom. Beyond its home smokers and grills, it has benefited from a rise in outdoor camping, tailgating and social gatherings by providing heavy-duty, yet relatively portable cooking solutions.
“Camp Chef is excited to join the exceptional family of Vista Outdoor brands,” Measom said. “The opportunity to be part of this dynamic company will provide for the future growth and success of Camp Chef as a leader in our market. The hard work and dedication of Camp Chef employees, past and present, has made Camp Chef what it is today. We look forward to the opportunities ahead.”
Photo courtesy Camp Chef
