Vista Outdoor has revealed the new identity of its outdoor products division, Revelyst, as it moves towards the anticipated separation into two independent companies by the end of this year. The Anoka-based corporation plans to divide into the Kinetic Group, an ammunition brand, and Revelyst. Revelyst will operate under the stock symbol GEAR and is likely to be headquartered in Montana.
Revelyst Unveiled as New Identity for Vista Outdoor’s Division
The company will incorporate well-known brands such as Fox, Bell, Giro, Camelbak, and Camp Chef. The move to separate into two distinct entities aims to better focus on each company’s specific markets and increase overall efficiency, allowing both Kinetic Group and Revelyst to thrive in their respective industries. This strategic decision comes as a response to customer demand, industry trends, and the evolving landscape within the outdoor recreation and shooting sports markets.
Significance of the Revelyst Name and Brand Philosophy
Revelyst’s name is a combination of “revel” and “catalyst,” representing a constant source of transformation and experiences. Eric Nyman, who is in charge of the outdoor brands group and is expected to become Revelyst’s CEO, said that the company is a “collective of maker brands united by an obsession with craftsmanship, a consumer-first culture, and helping people achieve their greatest outdoor aspirations.” Nyman further emphasized that each brand under the Revelyst umbrella shares a commitment to providing customers with high-quality and innovative products designed to enhance their outdoor adventures. The focus is not only on engineering top-tier gear, but also nurturing a deep connection with nature and fostering a sense of community among outdoor enthusiasts.
Background of the Vista Outdoor Split
In May 2022, Vista Outdoor announced its plan to split its sporting products and outdoor products divisions into distinct entities. The procedure was delayed, however, due to the departure of CEO Christopher Metz earlier in the year. Vista maintains that the separation will create shareholder value by establishing two focused organizations. The newly formed organizations will be better equipped to cater to their respective markets and take advantage of new growth opportunities. Both the sporting products and outdoor products divisions will function independently, streamlining their operations and improving overall efficiency.
Kinetic Group and Its Bearing on the Division
Over the summer, Vista disclosed the name and ticker symbol, HUNT, for the ammunition company, which will continue to be based in Anoka and feature brands such as Federal, Remington, and Speer. Both spun-off companies now possess distinct branding elements, including logos, websites, and other business operations. This strategic move aims to allow each organization to focus on its strengths, catering to their individual markets under well-defined identities. Consequently, it is anticipated that the separate entities will thrive independently and contribute positively to their respective industries, bolstering innovation and customer satisfaction.
Size and Revenue Projections post Division
Following the division, Revelyst and Kinetic are anticipated to be similar in size, with Revelyst estimated to employ around 2,900 people and generate revenues of roughly $1.5 billion by fiscal 2024, while Kinetic is expected to employ approximately 4,100 people and produce revenues of nearly $1.4 billion by fiscal 2024.The split aims to capitalize on the distinct market advantages each individual company offers, allowing them to focus on their respective areas of expertise. As separate entities, Revelyst and Kinetic will maximize their potential for innovation and agility within the competitive markets they serve, ultimately driving increased value for shareholders and stakeholders alike.
Conclusion and Outlook for the Future
The planned split of Vista Outdoor into two distinct companies, Kinetic Group and Revelyst, seeks to capitalize on the unique strengths and market advantages each brand possesses. By establishing focused organizations, each company aims to improve overall efficiency, streamline operations, and optimize their potential for innovation and growth. The initiative supports the evolving demands of the outdoor recreation and shooting sports markets, which will enable both companies to better cater to their customers, foster community and connection, and ultimately create enhanced shareholder value.
Frequently Asked Questions
What is the new identity of Vista Outdoor’s outdoor products division?
The new identity of Vista Outdoor’s outdoor products division is Revelyst, which will operate alongside the Kinetic Group, an ammunition brand.
What does the name Revelyst represent?
Revelyst is a combination of “revel” and “catalyst,” representing a constant source of transformation and experiences. The company is a collective of maker brands focused on craftsmanship, a consumer-first culture, and helping people achieve their greatest outdoor aspirations.
Why is Vista Outdoor splitting into two companies?
The split aims to better focus on each company’s specific markets and increase overall efficiency, allowing both Kinetic Group and Revelyst to thrive in their respective industries. This strategic decision comes as a response to customer demand, industry trends, and the evolving landscape within the outdoor recreation and shooting sports markets.
What are the expected sizes and revenue projections for Revelyst and Kinetic Group after the division?
Revelyst is estimated to employ around 2,900 people and generate revenues of roughly $1.5 billion by fiscal 2024, while Kinetic is expected to employ approximately 4,100 people and produce revenues of nearly $1.4 billion by fiscal 2024.
What is the main goal of the split between Kinetic Group and Revelyst?
The main goal of the split is to capitalize on the distinct market advantages each individual company offers and allow them to focus on their respective areas of expertise. This will maximize their potential for innovation and agility within the competitive markets they serve and ultimately drive increased value for shareholders and stakeholders alike.
First Reported on: startribune.com
Featured Image Credit: Photo by Andrea Piacquadio; Pexels; Thank you!
