The completed transaction enhances Vista Outdoor's position within one of the camping market's most attractive categories, complementing its already broad portfolio of 50 brands in shooting sports and outdoor recreation. Wholesale dollar sales in the camping category grew at a 6% Compound Annual Growth Rate (CAGR) from 2010 to 2015 (source: Sports & Fitness Industry Association). Camp Chef's sales growth has been fueled by a strong product development pipeline and user-friendly products.
But even with their indirect heat, wood pellets do something gas can’t; they give your meat that natural, smoky flavor you expect from wood. They don’t create as much smoke as wood or charcoal, so the flavor is not as intense, you swap that intensity for convenient cooking. The smoke they do create is clean and easy to control. And the hotter you burn pellets, the cleaner they burn, letting you crank up the heat when you don’t need smoke.
You want a set-it-and-forget-it option: Traeger grills work best when they’re allowed to cook and smoke the food over long periods of time. As long as the system has fresh wood pellets in the hopper to feed the fire box, it will be able to maintain a steady temperature. So you can set up the grill and then leave it for half an hour, a couple of hours, or even longer, something that’s difficult to do with other grilling systems.
Vista Outdoor will pay a total purchase price of $74 million for Camp Chef, comprised of $60 million in cash paid at closing and $14 million in cash to be paid out in equal installments on the first, second and third anniversaries of the closing date, subject to certain conditions described below. However, the effective purchase price is lower, due to value created by certain tax assets resulting from the transaction and the deferred purchase price structure, leading to an effective multiple of approximately 6.4x Camp Chef's expected calendar year 2016 EBITDA. Vista Outdoor financed the purchase price paid at closing using borrowings under its existing revolving credit facility. Vista Outdoor expects the acquisition to be slightly accretive to FY17 earnings per share (EPS), including impacts associated with transaction expenses. A majority of the payment of $14 million of deferred purchase price will be contingent on continued employment of key members of management and certain other conditions. As a result, Vista Outdoor plans to record the payments conditioned on continued employment as a compensation expense in future periods in accordance with GAAP. However, for purposes of presenting certain non-GAAP financial measures, including adjusted EPS, Vista Outdoor expects to treat those deferred payments as deferred purchase price and will therefore adjust the payments out of its financial results in future periods as payments are made. The purchase price will also be subject to a customary working capital adjustment. Additional information, including impact on full-year guidance, related to Camp Chef will be presented during Vista Outdoor's second quarter FY17 earnings call and webcast.
Depending on your budget and grilling needs, there are a variety of Traeger options ,including the Renegade. With the Traeger Pro Series 22 you get a bigger Traeger with more advanced features at about the same price, while the Junior Elite, Tailgater, and Bronson also offer an incredible value. Or, if you prefer a pre-set package deal, the Outlaw Package comes with upgraded accessories and and costs less than the Renegade.
After we receive your order please allow up to 3 to 4 days for processing. Processing is the stage where your order is physically put together and packaged for delivery. After processing is complete, your order will be shipped to the ship-to address you supplied during checkout. When your order ships we will notify you via e-mail and provide you with a tracking number.
Our reviewers spent 12 hours testing a top-selling, budget-friendly pellet grill. To get the most comprehensive feedback possible, we had our testers take this grill for a spin and had them consider its most important features — from how much it can cook at a time to how easy it is to travel with. We've outlined the key pointers here so that you, too, know what to look for when shopping.