Vista Outdoor is splitting up. What are the keys to this division?

vista_outdoor_split

Have you heard recent news about Vista Outdoor and its impending corporate split? If you’re true lovers of outdoor sports, and action products related to shooting sports, you’re probably aware that things are about to change at one of the most successful U.S. companies in its niche.

And in case you don’t know about it, it’s probably in your best interest to know because the purchase of their products is going to undergo some changes that, however, are not going to affect in case you don’t live in the United States and have ever carried out some purchases in order to be able to practice outdoor sports.

How is the division into two companies that Vista Outdoor has decided to do, and what are the reasons why it has decided to pursue its commercial future in this way? Today we tell you in detail how these new changes are going to be… So continue reading the article to gather the most relevant information!

First of all… What is Vista Outdoor?

Surely you already know what Vista Outdoor is and why it is one of the most widespread companies dedicated to the sale of sporting goods in the United States. But in case you don’t, we are going to tell you some interesting facts about them, so that you can understand how the new dynamics will be when they finally split into two companies.

Vista Outdoor Inc. is a designer and manufacturer of sports and outdoor recreation products. Although it is a global company, the truth is that in its stores and online sales spaces you can find more than forty subsidiaries with different brands and areas of sporting goods.

However, in order to get an idea of the products it works with, you should know that it operates in two main markets, which are shooting sports and outdoor products. It is possible to find various elements for camping, hiking, cycling and, in general, activities in forests and natural areas. In addition, there is the sale of ammunition for shooting sports.

In relation precisely to this product area, a small controversy arose due to Vista Outdoor’s connection with a firearms sales company called Savage Arms, with which they stopped dealing after the shooting that happened in Parkland in 2018. Some retailers such as REI, an outdoor retailer with origins in New York, though doing business all over the country, and another store called MEC, stopped buying Vista Outdoor products until they stopped collaborating with the gun company.

Is it possible that this experience gave Vista Outdoor’s owners food for thought about splitting their various activities into separate companies? Although in the announcement of the split they have not made any reference to the breakup they had, and that today has been solved with REI, it is true that they have never hidden the relevance for them of their collaboration with REI, and the other companies that are also linked to them.

Why is it splitting into two companies?

So, if the decision to split the company in two has not been taken as a result of this small conflict a couple of years ago… What are the reasons that have led them to start a separation process that will culminate next year 2023?

Although they have made a press release explained by Michael Callahan, the president of the company, this has spoken in a generic way about the unanimous decision to split the two main areas of activity of Vista Outdoor. The reasons given have to do with an economic analysis that has shown the best results for the consecutive quarters of the year 2023, despite the fact that during the last few years the company's situation was really good.

So, next year there will be two different companies of what is now Outdoor: one dedicated to outdoor sports and all the products that can be used for it, and on the other side, a company dedicated to ammunition for sporting activities.

Chris Metz, current CEO of Vista Outdoor, is going to be the future new director of the company that will be dedicated to outdoor sports. On the other hand, Jason Vanderbrink, who is the current president of some of the sporting goods brands related to the company, will be the future head of the second spin-off company, which will be dedicated to the ammunition business.

As we told you, the financials of the current Vista Outdoor are great, and the company has been listed on the New York Stock Exchange for years. Now that it is being split up, both companies will continue to be listed, albeit under two different names for which we do not yet have any information.

In all likelihood, in the coming weeks and especially during the following months, we will receive more information about the new features of both companies. In any case, for outdoor sports enthusiasts there will be no problem whatsoever with this split between the two companies. On the contrary, in all likelihood, this differentiation for different sectors may lead to a specialization of the products in each of the sports areas.

Leave a Comment

Your email address will not be published.