News broke Monday afternoon that Minnesota-based Vista Outdoor, Inc. sold the Savage Arms and Stevens firearms brands to a “financial buyer” for a total purchase price of $170 million. The announcement was shared in a company press release.
Selling the Savage brand is part of Vista Outdoor’s previously announced transformation plan, which outlined the intent to reshape the company’s portfolio by cutting costs, consolidating leadership, paying down debt, and divesting certain brands, including both its eyewear brands and firearms brands, in order to pursue growth in product categories where the company believes it can be market leaders.
“Divesting our Savage brand was a key aspect of our transformation plan,” said Chris Metz, Chief Executive Officer of Vista Outdoor. “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, 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. As Vista outdoor, Inc. now looks forward, the focus will be on ammunition, hunting and shooting accessories, hydration bottles and packs, outdoor cooking products, and cycling/ski helmets and accessories.
Any reaction from Fire Readers?
Whens Roy Clark gonna release another single?
Could be a good thing. Doesn't sound like Vista had much interest in investing in the Brand. They seem focused on sales for Millennial hikers and bikers that are urban dwellers that just relish in the great outdoors on the weekends before they slip back home to eat at some celebrity chef's restaurant.
Hope it doesn’t turn out like Remington’s roller coaster ride.
Whens Roy Clark gonna release another single?
Sorry to inform you but he died. You might have missed it since it wasn't well covered on this forum...
Whens Roy Clark gonna release another single?
seems I heard that Roy and Buck are working on a new collaboration? Seems Glen C is in on it too?
Could be a good thing. Doesn't sound like Vista had much interest in investing in the Brand. They seem focused on sales for Millennial hikers and bikers that are urban dwellers that just relish in the great outdoors on the weekends before they slip back home to eat at some celebrity chef's restaurant.
Man get it right, it's avocado toast they like so much!
Could be a good thing. Doesn't sound like Vista had much interest in investing in the Brand. They seem focused on sales for Millennial hikers and bikers that are urban dwellers that just relish in the great outdoors on the weekends before they slip back home to eat at some celebrity chef's restaurant.
If what you say is true, there are a whole lot of other relevant brands that need to be divested:
Vista Outdoors - BrandsJust to name a few of them:
Bushnell
Simmons
Tasco
Weaver (possibly discontinued if one can believe the optics forum)
Butler Creek
Uncle Mike's
Hoppe's
Federal
CCI
Speer
RCBS
...
.
.
.
Maybe the new owner will cut costs by eliminating the barrel roughening step of manufacture.
Salvage is about to be savaged
I know an awful lot of hunters who use Camelbaks.
Note, the acquisition was made by a 'financial" buyer. Which means the buyer will be focused on maximizing the asset. This sometimes means spinning off non or under-performing assets, merging offerings, or creating other 'shareholder return".
This is as opposed to a "strategic" buyer, who is looking to build brand, niche, market share, offering in areas that are aligned with its core competencies.
Note, the acquisition was made by a 'financial" buyer. Which means the buyer will be focused on maximizing the asset. This sometimes means spinning off non or under-performing assets, merging offerings, or creating other 'shareholder return".
This is as opposed to a "strategic" buyer, who is looking to build brand, niche, market share, offering in areas that are aligned with its core competencies.
The sales document is available on the SEC website and the guy who signed for the buyer works for Hamilton James. James is high up at Blackstone and was a pretty big contributor to Obama so I'm not holding out much hope for better products.
Selling Savage for170 million would help any portfolio
I suppose bringing back the 99 is out of the question 😂
I suppose bringing back the 99 is out of the question 😂
Not enough craftsmen left to build them in quantity, plus they aren't "tacticool" enough.
Note, the acquisition was made by a 'financial" buyer. Which means the buyer will be focused on maximizing the asset. This sometimes means spinning off non or under-performing assets, merging offerings, or creating other 'shareholder return".
This is as opposed to a "strategic" buyer, who is looking to build brand, niche, market share, offering in areas that are aligned with its core competencies.
Now we know why Savage is sometimes referred to as Salvage.
Looks like the Savage salvage is underway.
Left leaning bean counters in charge, reportedly.
Not good.
DF
Wouldn't be hard to cripple the gun industry. Buy up stocks or take over the companies and shut them down. Then rule ar15s illegal to manufacture and we are in deep doodoo
I have a heavy barrel savage 17hmr, my wife has a camo pink youth axis, and I have a loaner .243 axis deer rifle. Not the best quality rifles but all are good shooters.
I would of bought my wife something better, but she was stuck on the pink camo above all else
. Not even the youth tikka would do. ... As long a she's happy and it shoots I guess.
Note, the acquisition was made by a 'financial" buyer. Which means the buyer will be focused on maximizing the asset. This sometimes means spinning off non or under-performing assets, merging offerings, or creating other 'shareholder return".
This is as opposed to a "strategic" buyer, who is looking to build brand, niche, market share, offering in areas that are aligned with its core competencies.
It also could mean piecing out and selling off all assets.
You just never know. Ithaca was bounced around for decades but finally was reborn with new gun-guy owners and now makes very nice stuff, but you'd never know it based on store shelves or advertising. Apparently they sell enough to keep the lights on, even at 2 or 3 times the price of good used ones.
Savage lost me when they went PC and dropped the Indian chief logo. Unfortunate too, as they were one of the few that offered an affordable LH option.
Have to wait and see now.
Wouldn't be hard to cripple the gun industry. Buy up stocks or take over the companies and shut them down. Then rule ar15s illegal to manufacture and we are in deep doodoo
Yeah, okay... Spend billions of dollars to buy companies and then shut them down. People who have billions of dollars got that way by not doing stupid stuff with their money.
They can pull a lot of money out of it and the bankrupt it. I'm sure they have some leveraged scam working for them to make sure they get theirs before it implodes.
Bb
That's what i meant. Buy or take it over and then suck the money out and close the doors.
The people trying to take our guns have plenty of money to do this.
It would be a first step. No more new ones and then get rid of the existing ones.
Except for one small detail, a capitalist sees the opportunity to fill a firearm demand left hanging by the closing of MAKER ABC.MAKER XYZ starts making and selling firearms to fill a void.
Anyway, for a brand new rifle, I dont consider Remington or Savage.
Apparently the person leading the acquisition is Al Kasper, President and CEO of Savage. Has been at Savage Arms for 23 years, and 17 of those were under Ron Coburn when Ron took it private and turned it around from bankruptcy.
REI was threatening to cancel all Vista product contracts if Vista didn't stop mfr'ing AR15's and other scary guns. Divesting Savage or hamstringing it by cutting products has been in the works for over a year. Vista would have been screwed if they cut Savage products like the AR's they currently sell, the backlash from sportsmen would have been vicious on all Vista brands. So divesting it makes sense.
This could very well turn out to be a very good thing for the company, taking it back to a "Savage Arms First" emphasis that it had back when Ron Coburn was running it.
Note, the acquisition was made by a 'financial" buyer. Which means the buyer will be focused on maximizing the asset. This sometimes means spinning off non or under-performing assets, merging offerings, or creating other 'shareholder return".
This is as opposed to a "strategic" buyer, who is looking to build brand, niche, market share, offering in areas that are aligned with its core competencies.
Typical ignorant statement from someone who does not understand how m&a deals or the private equity universe works
I agree, Unions and Pensions have to have something to do with this also.
