Vista Outdoor considers selling gun business
Vista Outdoor said Tuesday it’s considering a sale of its gun-making business, as the company looks to overhaul its portfolio of brands.
Vista, the owner of Savage and Stevens firearms, is also exploring strategic options for Jimmy Styks paddle boards and several brands of bike helmets such as Bell and Giro.
The company will continue to make ammunition, hunting and shooting accessories, water bottles and packs, and outdoor cooking products. Vista makes ammunition under the Federal Premium and American Eagle brands.
Shares of Vista tumbled 13.1% on news of the company’s transformation plans.
Vista said it intends to focus on businesses in core categories that will improve its future growth, financial flexibility and shareholder value. Ammunition is Vista’s largest core business, according to CEO Chris Metz.
“An increased focus on our heritage ammunition business will manifest itself in more innovative and breakthrough new products introduced over the next few years,” he added in a statement.
|VSTO||VISTA OUTDOOR INC.||27.97||+0.03||+0.11%|
Vista has faced pressure from some retailers to separate itself from Savage and Stevens, two brands of rifles and shotguns. Outdoor retailer REI, which sells other Vista products including Bell helmets and CamelBak hydration packs, suspended orders from the company in March. It was unclear if REI would resume selling Vista products following Tuesday’s announcement.
Other retailers, including Dick’s Sporting Goods, raised the minimum age for all firearm purchases to 21 years old following the shooting at a Parkland, Florida, high school.