Compass Diversified Holdings has sold its CamelBak brand to Vista Outdoor for $412.5 million, officials announced early Monday.
Vista Outdoor (NYSE: VSTO) will add the iconic hydration bottle, pack and filter company to a collection of more than 30 outdoor and sporting goods brands, including Bushnell, Bolle and, also recently acquired, Jimmy Styks SUPs. CamelBak is expected to bring in $160 million in net sales in 2015 and the purchase price included an estimated $35 million in future tax benefits, officials said. Pending regulatory procedures, the deal is expected to close within the next month.
"The acquisition of CamelBak greatly advances Vista Outdoor's strategy to grow and strengthen our leading position in the outdoor recreation industry," said Mark DeYoung, Vista Outdoor chairman and chief executive officer. "CamelBak fortifies our presence in the mainstream individual outdoor recreation market, creating an opportunity to increase the scale, reach and growth of several current offerings through an expanded global sourcing capability and a broadened retail distribution network. With limited overlap between our key customers, this acquisition creates significant cross-selling opportunities, increased channel presence and access into expanded domestic and international markets. As a market leader and preferred partner, Vista Outdoor can leverage the technical expertise of CamelBak to deliver innovative solutions and quality product offerings that will create value for our shareholders and customers."
CamelBak has approximately 300 employees and will be integrated into the Outdoor Products segment of Vista Outdoor. CamelBak CEO Sally McCoy will continue to lead the brand, now under its third ownership group in four years since Compass acquired its controlling interest for $257.5 million in 2011. The brand was founded in 1989 and helped jumpstart the hands-free hydration pack market.