Revelyst Announces Sale of RCBS

Rhea-AI Summary

Revelyst, a segment of Vista Outdoor Inc., has announced the sale of RCBS, a reloading brand, to Hodgdon Powder Co. This move aims to position RCBS for growth under Hodgdon's ownership, ensuring operational excellence and scale in the shooting sports industry. The sale will allow Revelyst to enhance operational efficiencies, evaluate acquisitions, and invest in innovation and organic growth.

Positive

• Positioning RCBS for growth under Hodgdon's ownership

• Ensuring operational excellence and scale in the shooting sports industry

• Enhancing Revelyst's operational efficiencies with sale proceeds

• Evaluating bolt-on acquisitions for future growth

• Investing in maker-fueled innovation and organic growth

Negative

• None.

Insights

Financial Analyst

The divestiture of RCBS by Revelyst to Hodgdon Powder Co. signifies a strategic reallocation of assets that allows Revelyst to liquidate a subsidiary to fund further development and acquisitions. From a financial perspective, the sale could bolster Revelyst's cash reserves, enabling the company to enhance operational efficiencies and potentially improve profit margins. The impact on Revelyst's stock could be positive if the market perceives this move as a step towards a more focused and growth-oriented business model. For Hodgdon, acquiring a complementary business such as RCBS might lead to economies of scale and a stronger presence in the ammunition reloading market. However, the financial terms of the deal are not disclosed and thus the immediate financial impact cannot be quantified. This makes the analysis speculative to some extent. Investors would benefit from monitoring subsequent financial disclosures to assess the effect of this sale on the company's bottom line.

Market Research Analyst

Entering the reloading equipment sector, Hodgdon Powder Co. complements its existing product line-up and may capture a broader share of the shooting sports market. It's essential to evaluate customer loyalty towards RCBS and potential synergies from the acquisition. The long-standing history and community reputation of RCBS could provide Hodgdon with valuable brand equity, aiding in cross-promotional opportunities and possibly leading to an uptick in market share. The transaction suggests a trend towards consolidation in the industry, with companies seeking to create comprehensive portfolios to serve the sporting enthusiasts' community better. For investors, understanding these market dynamics could provide insights into the future performance of both Revelyst and Hodgdon Powder Co.

The company has sold the longtime reloading brand to Hodgdon Powder.

ANOKA, Minn.--(BUSINESS WIRE)-- Revelyst, a collective of world-class maker brands that design and manufacture performance gear and precision technologies and a segment of Vista Outdoor Inc. (NYSE: VSTO), today announced the sale of RCBS, the company’s Oroville, California-based reloading brand, to Hodgdon Powder Co. Inc., a Shawnee, Kansas-based supplier of smokeless and black powder substitute propellants.

RCBS is a leading manufacturer of ammunition reloading equipment for hunters, competition shooters and sporting enthusiasts. Through this transaction, Revelyst found the right home for RCBS with Hodgdon, a market leader in American manufacturing, smokeless powder, clean black powder substitute and now reloading equipment.

“At Revelyst, each and every day we honor the makers behind our brands and products — from the innovations they create to the cultures they build,” said Eric Nyman, CEO of Revelyst and co-CEO of Vista Outdoor. “For more than 80 years, RCBS has lived this maker-fueled ideal. We are thrilled for RCBS and their new connection with Hodgdon Powder. This transaction joins two iconic brands, and it ensures that RCBS is positioned for success in the next chapter of its history.”

Revelyst received interest from multiple parties looking to acquire RCBS, whose strong culture, 80-year history, value proposition in the market and alignment with the existing Hodgdon portfolio makes this transaction the best path forward for the brand.

“As part of Hodgdon, RCBS is positioned for growth with a company whose deep history in ammunition components, domestic manufacturing, and reputation with core shooting sports enthusiasts will help RCBS flourish,” said Steve Kehrwald, president and CEO of Hodgdon Powder. “Under Hodgdon’s ownership, RCBS can continue its operational excellence, growth and scale across the shooting sports industry.”

The sale is effective immediately. The teams are excited to transition the business and continue to serve valued customers for years to come.

“Selling RCBS allows us to raise cash to create a more dynamic portfolio for our company’s future,” said Andy Keegan, CFO of Revelyst. “Revelyst will use proceeds from the sale to enhance the operational efficiencies of the company’s power brands, evaluate bolt-on acquisitions, and invest in maker-fueled innovation and organic growth.”

Baird served as exclusive financial adviser and Reed Smith LLP served as legal adviser to Revelyst on this transaction.

About RCBS

RCBS has dedicated itself to the craft of reloading ammunition since it was founded in 1943. RCBS started with one simple bullet die and has grown into the leading manufacturer of reloading equipment for rifles and pistols. Reloading is an exact process with tight tolerances. It requires precision and skill to be done correctly. That’s why RCBS makes state-of-the-art products – everything from presses, dies, shell holders, powder measurers and priming products. All are backed by RCBS’s industry-leading reputation to give you a premium reloading experience. RCBS: Precisioneered Reloading. For more information, visit www.rcbs.com, connect on Instagram at www.instagram.com/rcbsreloading/ or on Facebook at www.facebook.com/RCBSReloading/.

About Hodgdon Powder Company, Inc.

Established in 1947 by Bruce and Amy Hodgdon, today, sons J.B. and Bob have grown Hodgdon Powder Company into the largest U.S. supplier of smokeless and black powder substitute propellants. The company distributes gunpowder under the Hodgdon®, IMR®, Ramshot®, Acccurate®, Winchester®, Pyrodex®, Triple Seven® and Blackhorn 209® brands.

About Revelyst

Revelyst, a segment of Vista Outdoor Inc. (NYSE: VSTO), is a collective of world-class maker brands that design and manufacture performance gear and precision technologies. Our category-defining brands leverage meticulous craftsmanship and cross-collaboration to pursue new innovations that redefine what is humanly possible in the outdoors. Portfolio brands include Foresight Sports, Bushnell Golf, Fox, Bell, Giro, CamelBak, Bushnell, Simms Fishing and more. For more information, visit our website at www.revelyst.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240502755138/en/

RCBS Media Contact:

Matt Rice

Phone: 913-689-3713

Email: matt.rice@vistaoutdoor.com

Hodgdon Media Contact:

Aaron Oelger

Email: aoelger@hodgdon.com

Revelyst Media Contact:

Eric Smith

Phone: 720-772-0877

Email: media.relations@revelyst.com

Source: Vista Outdoor Inc.

FAQ

What was the brand sold by Revelyst to Hodgdon Powder?

Revelyst sold the RCBS reloading brand to Hodgdon Powder Co.

Where is RCBS headquartered?

RCBS is headquartered in Oroville, California.

Who is the CEO of Revelyst?

Eric Nyman is the CEO of Revelyst and co-CEO of Vista Outdoor.

What is the stock symbol of Vista Outdoor Inc.?

The stock symbol of Vista Outdoor Inc. is VSTO.

What does Hodgdon Powder specialize in?

Hodgdon Powder specializes in smokeless and black powder substitute propellants.