Vista Outdoors, owners of Savage Arms, Stevens, Federal Premium, Bushnell and other major outdoor brands announced a Strategic Business Transformation Plan that explores the possibility of selling certain assets. As part of the Full-Year Operating Results for FY2018, the report announced today stated that the company is exploring “strategic options” for brands that fall outside of the transformation. While the plans for Savage and Stevens are not detailed at all in the report, the Associated Press is reporting that Vista will stop manufacturing firearms (see the below article).
TFB contacted Vista Outdoor for clarification who stated that the company is exploring it’s options, but that “Savage is a strong and popular brand” and that it is “business as usual” for Savage. They also reiterated that any possible transformations are strictly business related and have nothing to do with current events.
The A.P. Story attempts to paint a completely different picture of the announcement, without crediting any additional sources. I’d make a comment about facts and the mainstream media, but TFB isn’t that kind of operation.
FARMINGTON, Utah, May 1, 2018 /PRNewswire/ — Vista Outdoor Inc. (NYSE: VSTO) today announced its strategic business transformation plan, designed to allow the company to focus resources on pursuing growth in its core product categories. The plan is a result of a comprehensive strategic review, which began in November 2017.
“Our review identified product categories that are core to the company’s long-term business strategy,” said Vista Outdoor Chief Executive Officer Chris Metz. “We believe future investment should focus on categories where Vista Outdoor can achieve sustainable growth, maximize operational efficiencies, deliver leadership economics, and drive shareholder value.”
In conducting the strategic review, Vista Outdoor management defined several criteria to evaluate whether individual product categories are part of the company’s core. Vista Outdoor evaluated brands within its current portfolio based on their ability to do the following:
- Serve the company’s target consumer – the outdoor enthusiast
- Create cross-selling and other similar synergy opportunities
- Achieve market leading positions and leadership economics
- Demonstrate omni-channel distribution capabilities
As a result of this evaluation, and with support from its board of directors, Vista Outdoor will focus on achieving growth through its market-leading brands in ammunition, hunting and shooting accessories, hydration bottles and packs, and outdoor cooking products.
“Vista Outdoor is excited about the potential of each of our core businesses, particularly ammunition, which is our largest core business.” said Metz. “An increased focus on our heritage ammunition business will manifest itself in more innovative and breakthrough new products introduced over the next few years. We also anticipate that by prioritizing this business, we will be able to invest more capital to further enhance and expand our global leadership position.”
The company plans to explore strategic options for assets that fall outside of these product categories, including its remaining Sports Protection brands (e.g. Bell, Giro, and Blackburn), Jimmy Styks paddle boards, and Savage and Stevens firearms. Vista Outdoor expects that the execution of this process will significantly reduce the company’s leverage, improve financial flexibility and the efficiency of its capital structure, and provide additional resources to reinvest in core product categories, both organically and through acquisition. Read More
Another company, this one among the largest ammunition makers in America, will stop producing firearms following the massacre at Marjorie Stoneman Douglas High in February.
Vista Outdoor Inc. has been pressured for months by retailers that sell its other goods like Bell bicycle helmets and CamelBak water carriers, to distance itself from firearms.
The Utah company said Tuesday that it will focus on products for outdoor enthusiasts. It will continue to sell ammunition, its biggest core businesses.
REI, the national outdoor retailer, suspended all orders from Vista in March after it refused to say if it would continue to manufacture weapons.