- Vista Outdoor Inc (NYSE:VSTO) has agreed to acquire California-based Fox Racing, a performance motocross, mountain bike, and lifestyle gear provider, for $540 million.
- There is also potential for an additional $50 million earnout based on Fox Racing’s financial performance.
- Vista Outdoor expects the deal to be immediately accretive to earnings, excluding transaction costs, transition costs, and inventory step-up.
- For the calendar year 2022, Fox Racing’s full-year net sales and adjusted EBITDA are expected to be approximately $350 million and $55 million, respectively.
- Vista Outdoor expects to finance this acquisition through a combination of a $600 million asset-based revolving credit facility, which will replace Vista Outdoor’s existing asset-based revolving credit facility, and a $350 million secured term loan facility. It held $22.6 million in cash and equivalents as of March 31, 2022.
- Jeffrey McGuane, CEO of Fox Racing, will continue to lead the company following the closing of the acquisition.
- Vista Outdoor expects to close the transaction in the second fiscal quarter of FY23.
- Price Action: VSTO shares are trading lower by 8.50% at $27.01 on the last check Wednesday.
Kandi Technologies Group Q3 EPS $0.01 Up From $(0.10) YoY, Sales $33.70M Miss $49.78M Estimate
Kandi Technologies Group (NASDAQ:KNDI) reported quarterly earnings of $0.01 per share. This is a 110 percent increase over losses of $(0.10) per share from the same period last year. The company reported quarterly sales