Vista Outdoors has announced the sale of Savage Arms and Stevens firearms brands in what was described as “a management led buyout to a group of investors” led by Savage CEO and President Al Kasper.
The $170 million sale is comprised of $158 million paid at closing and another $12 million that will be paid on maturity of a five-year seller note issued by the buyer to Vista.
According to news releases, Vista Outdoor CEO Chris Metz noted, “Divesting our Savage brand was a key aspect of our transformation plan. 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,” Metz continued, “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.
According to the news release, 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.”
Meanwhile, in Westfield, Mass., where Savage Arms is headquartered, Kasper said “Savage is an extremely strong brand and in a great position to keep charging forward. The momentum gained under Vista Outdoor will propel us for future success. It is business as usual and Savage is excited to continue building on existing relationships within the firearms industry.”
That sentiment was shared by Marketing Director Beth Shimanski.
“We are excited to build on the Savage legacy and are blasting into our next chapter.,” Shimanski said. “Here at Savage we are excited to show you what we have coming, because we are just getting our barrels warm! You’ll see more customizable platforms based on our incredibly versatile Accufit stock system, and a continued focus on making your firearm best fit your shooting and hunting needs. As we are transitioning, you’ll see more detailed information coming, with updated contacts and information.”
Savage has built a reputation for continuously improving firearm design while becoming the standard for accuracy and value in the industry. Savage, Stevens and Fox shotguns have been delivering innovative products for more than 125 years.
Robert W. Baird & Co. served as transaction and financial advisor and Reed Smith LLP served as legal advisor to Vista Outdoor in connection with the transaction.