Sale of Simms's Parent Company Approved in Thanksgiving Week Vote

Last month, Fly Fisherman Digital Editor Josh Bergan reported that Vista Outdoor, the parent company of Simms Fishing Products headquartered in Bozeman, Montana, had reached a tentative agreement to sell the outdoors products segment of the company (named Revelyst in 2022) to the investment firm Strategic Value Partners (SVP) for $1.125 billion. As Bergan reported then, that potential sale required that Vista Outdoor shareholders approve the sale of Vista Outdoor's other sector, the Kinetic Group, to a firm called The Czechoslovak Group (CSG). 

Bergan noted that "...this agreement is contingent upon a shareholder vote to sell Vista’s other segment, the 'ammunition and reloading component producing divisions' (renamed the Kinetic Group) to CSG, which has been pushed back again to December 11 [which was subsequently updated to November 25]. If the shareholders vote no to selling the Kinetic Group, the Revelyst sale will apparently be voided (although market indicators are trending toward a 'Yes' vote). Revelyst is headquartered in Bozeman, Montana at the existing Simms manufacturing facility."

The sale of Revelyst to SVP is slated to be completed in January 2025 and does not require its own shareholder vote. 

Bergan also indicated at the time that the announcement was a bit of a surprise after a months-long back-and-forth bidding war between CSG and MNC Capital. While Vista's board had recommended selling the Kinetic Group to CSG and retaining Revelyst, a large number of Vista shareholders had apparently vowed to vote against the proposed move. That led to the early October news of the new deal announcement that indicated that SVP had now publicly entered the conversation.

And this week, just two days prior to Thanksgiving Day, news has come that Vista Outdoor shareholders have indeed approved the potential sale reported a few weeks ago. According to a Vista Outdoor news release, the sale is imminent and is expected to be finalized sometime this week.

"Vista Outdoor Inc. ('Vista Outdoor', the “Company”) (NYSE: VSTO) today announced that its stockholders voted to approve the sale of The Kinetic Group to Czechoslovak Group a.s. ('CSG') (the 'CSG Transaction') at its special meeting of stockholders held earlier today," stated the Vista Outdoor news release on Monday, November 25.

"Vista Outdoor and CSG have received all regulatory approvals required under the merger agreement for the CSG Transaction and intend to close the CSG Transaction on November 27, 2024. Under the terms of the CSG Transaction, Vista Outdoor stockholders will receive $25.75 in cash and one share of Revelyst common stock for each share of Vista Outdoor common stock they hold."

According to Vista, the decision to sell was widely supported among its shareholders at the Monday meeting.

"Based on the vote count from the special meeting of stockholders, approximately 97.89% of votes cast were in favor of the CSG Transaction, representing approximately 82.57% of all outstanding shares. The final voting results will be reported in a Form 8-K filed with the U.S. Securities and Exchange Commission."

After the shareholders' vote yesterday, the reaction from the Vista Outdoor Board of Directors was enthusiastic.

“We are thrilled to have received overwhelming support from our stockholders for the compelling transaction with CSG,” said Michael Callahan, chairman of the board of directors, in the Vista Outdoor news release. “The CSG transaction maximizes value for our stockholders, while also providing an ideal home for our leading ammunition brands and significant opportunities for our employees.”

As Bergan wrote last month in his report for Fly Fisherman, Vista Outdoor has been operating a wide array of brands within the outdoor space for a number of years. In addition to Simms Fishing Products, those brands have also included CamelBak, Stone Glacier, Camp Chef, Remington Ammunition, Federal Ammunition, and numerous others.

As readers of Fly Fisherman know, Simms Fishing Products is one of the best-known brands in the fly-fishing industry and a powerful one at that. Founded in 1980 by John Simms, the company became well-known as a maker of waders, fly-fishing equipment, and lifestyle products.

Originally headquartered in Jackson, Wyoming where the founder was a fly-fishing guide and outfitter, he reportedly sold his company a few years later to Life-Link International, which was another sporting goods manufacturer in the Jackson area.

Over the years, Wikipedia and a variety of different online sources chronicle the Simms story and show the progression of the business as Simms has become known worldwide as a maker of premium waders, first of the neoprene variety earlier in its history and most recently, for high-end breathable waders worn by many guides and fly anglers today. In fact, Simms is reportedly one of only a small handful of wader manufacturers who are licensed to use Gore-Tex in their waders. 

Today, waders remain a big part of the Simms’ product line, along with the production of wading boots, wading products designed specifically for women, outerwear for sunshine and inclement weather, on-the-water and off-the-water apparel, fly fishing accessories, travel products, and much more. If you happen to visit a town with either a fly shop or a sporting goods store that carries a great selection of fishing gear, odds are, you'll find at least a few Simms Fishing Products in the brick-and-mortar space, as well as in their online presence.

Those products have led to product innovation, a sterling reputation, and plenty of awards from the annual ICAST fishing trade show each summer, from the former IFTD fly fishing trade show, and from Fly Fisherman magazine too. That includes just recently too with the release of the 2025 Fly Fisherman Gear Guide, now on sale at newsstands nationwide.

Over the years, the Simms story has included the company being sold several more times, including a purchase by K.C. Walsh in the early 1990s. 

After purchasing the company some three decades ago, Walsh moved Simms to Bozeman, Montana and the company blossomed even more as it went on to become a multi-million dollar business and a powerhouse fly fishing brand known all over the world.

As time has progressed, Simms also moved into the bass angling and freshwater angling world too, as well as becoming a leading manufacturer of products for the overall angling lifestyle with clothing, footwear and accessories now on display in fly shops all across the world. The same thing is true in conventional tackle shops where Simms gear, clothing, and lifestyle items are on display to consumers from the conventional tackle side of the angling industry.

In the summer of 2022, Fly Fisherman reported on another titanic business deal involving Simms when Vista Outdoor agreed to purchase the company for the huge sum of $192.5 million. 

In May of 2022, Vista split its brands into the two arms noted above, one being the Revelyst Group (which houses Simms, Fox Racing, CamelBak, QuietKat, Camp Chef, Stone Glacier, and others) and the other being the Kinetic Group that focuses on the company's ammunition brands.

Like the aftermath of other financial sales transactions, there was an enthusiastic response following that announcement a few years ago.

“We are thrilled to be joining the Vista Outdoor family of brands,” noted Walsh, then Simms’ Executive Chairman as well as the most recent previous owner. “It is hard to imagine a better partner for Simms. Vista Outdoor is committed to helping us build continued momentum through operational expertise, access to growth capital and their Supply Chain and Digital Centers of Excellence.”

Now fast forward to this fall, and news has come of this most recent sale involving Simms now being completed. 

As Bergan reported in October, it remains unclear what this current purchase announcement means for Simms in the days ahead. In his recent story, Bergan also noted that: “SVP is 'a global investment firm focused on opportunistic credit and private equity opportunities in North America and Europe.'” He also wrote that SVP "...does not appear to have any special interest in the outdoors industry; rather it seeks 'deep value opportunities.'"

Only a few weeks ago, company officials with Simms were optimistic as they looked ahead to the potential sale that was voted on and approved earlier this week.

“We are excited to partner with SVP and believe this acquisition is a positive step for Revelyst’s future,” said Revelyst CEO Eric Nyman in a press release. “As I reflect on the last year, I am incredibly appreciative of our management team, our employees and our maker community for getting us here. We couldn’t have done this without everyone’s contribution. I believe the best is yet to come for Revelyst and for our customers, suppliers and retail partners. This partnership with SVP is going to make us a stronger company and afford us more opportunities to innovate and deliver top-tier products to outdoor enthusiasts while enhancing our market leadership in the outdoor recreation industry.”

Stay tuned, we’ll keep you updated on additional news about Simms, this week’s shareholder vote to sell the company, and what that all means for the industry giant in the weeks and months ahead.

In the meantime, Happy Thanksgiving everyone.

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