Vista Outdoor Inc. Announces Restructuring, Plans to Sell Bollé, Serengeti and Cébé Brands

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FARMINGTON, Utah—Vista Outdoors Inc. (NYSE: VSTO) announced plans to sell the Bollé, Serengeti and Cébé brands under their sports protection business. The announcement was made within the release of the company’s FY18 second quarter operating results for the period ending Oct. 1. The company also announced that its board of directors has named Michael Callahan chairman.

"We're in the process of completing a portfolio review of our brands, and we will divest assets where we see the potential to unlock shareholder value,” said Chris Metz, CEO. “As a first outcome of this process, we are announcing our intention to sell the Bollé, Serengeti and Cébé brands in the Sports Protection business.”

He continued, “These brands were acquired as part of the Bushnell transaction in 2013 and focus primarily on fashion, prescription and safety eyewear, which are areas that we have determined are not core to our business. The sale of these brands is expected to take place over the next few quarters.”

Vista Outdoor chief financial officer Stephen Nolan noted that during the quarter there was an impairment of intangible assets of $152 million in their Outdoor Products segments. Seventy-five million of that was related to their sports protection business.

Nolan said, “The impairment was triggered by increased downward pressure on sales and margins as a result of challenging market conditions that have persisted longer than previously expected. These challenging market conditions have been exacerbated by additional customer bankruptcies and consolidations.

“We continue to see high channel inventories for our Hunting and Shooting Accessories business. We expect these inventory levels will take the remainder of the fiscal year to work through, and will continue to put pressure on sales and margins. Our Sports Protection business has been impacted by the ongoing challenges facing the cycling industry broadly and by reduced retail space for our products,” he said.