Vista Outdoor Agrees To Acquire CamelBak For $412.5 Mln

(RTTNews) - Vista Outdoor Inc. (VSTO), a manufacturer and marketer in the outdoor sports and recreation markets, said it has entered into a definitive agreement to acquire CamelBak Products, LLC.

Under the terms of the transaction, Vista Outdoor will purchase CamelBak for $412.5 million, subject to a customary working capital adjustment.

The company will use cash on hand and borrowings under its existing credit facilities for the transaction. The management expects calendar year 2015 net sales for CamelBak of $160 million.

The purchase price includes an approximate net present value of $35 million in future tax benefits associated with the deductibility of intangibles from a prior acquisition of CamelBak.

CamelBak is a provider of personal hydration solutions for outdoor, recreation and military use. Its products include hydration packs, reusable bottles and individual purification and filtration systems.

The deal is expected to strengthen and expand Vista Outdoor's presence in outdoor sports and recreation.

According to Vista Outdoor, the acquisition will provide it with another highly recognized and well-respected brand that is a preferred partner to leading retailers. The transaction is expected to close within the next month.

CamelBak is a subsidiary company of Compass Diversified Holdings ( CODI), an owner of leading middle market businesses headquartered in Connecticut.