Fox Racing, one of the most recognizable apparel and protective gear brands in mountian biking announced it has agreed to a deal to be sold to Vista Outdoor. The purchase price? $540 million, with a possible $50 million earnout depending on Fox Racing’s performance this year.
Vista is focused on Fox’s potential for growth. Like many outdoor and mountain bike brands, Fox saw a big boost in sales over the last two years. Net sales grew by around 20 per cent annually from 2019 to 2021 and is projected to continue that pace.
Vista Outdoor already owns Bell Helmets Camelback, Giro, Blackburn, Krash, Copilot and youth brand, Raskullz. Fox Racing will be a major boost to the company’s outdoor portfolio.
Vista splits in two
Earlier this year, Vista announced plans to split into two independant companies. Vista Outdoor Products (to be renamed) will focus on non-firearms related sports. Vista Sporting Products will remain focused on ammunition and firearms.
That decision follows, but is not necessariy the caused by, the 2018 controversy where several major retaillers, including REI and MEC, boycotted Vista products. That happened after the Parkland Elementary mass shooting. At the time, Vista announced plans to sell several of its non-shooting brands. That didn’t end up happening and the boycot eventually faded.
Fox will stay in the lead
While Vista is aquiring Fox, the current CEO of Fox Racing and all of the leadership team will continue with the brand.
“We’re excited to join the Vista Outdoor family,” said Jeff McGuane, Fox’s CEO. “Vista Outdoor’s leadership team has proven they have an effective, repeatable acquisition model, making Vista Outdoor the clear acquirer of choice for Fox Racing. It is not often that an acquired company can remain true to its culture and customer base, while also tapping into the benefits of Vista Outdoor’s Centers of Excellence, vast retail partnerships, innovation engines and a leadership team that enables a founder’s mentality and results-driven culture. Needless to say, we are thrilled about this next chapter for Fox Racing.”
“Fox Racing is an ideal fit for our portfolio with a reputation for high quality helmets, protective gear and apparel for motocross and mountain biking. Motocross and mountain biking are growing and familiar categories for Vista Outdoor. Fox Racing is synergistic to our existing action sports business unit,” added Chris Metz, Vista Outdoor CEO. “We expect that Fox Racing…
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