Vista Outdoor Buys Fox Racing
VSTO will pay Altamont Capital Partners $540 million, plus up to $50 million more in an earnout, for the 50-year-old mountain bike and motocross apparel and equipment brand, which is expected to contribute $350 million in sales and $55 million in adjusted EBITDA this year. The deal, planned to close this quarter, will be immediately accretive to Vista’s bottom line, excluding transaction costs. After the close, Vista avers its net leverage will remain below 1.5x, despite financing the deal entirely with borrowings from an upsized, $600 million revolver and a $350 ... Log in to view full article.