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.
Compared with charcoal and other wood-fired grills, pellet smokers are simpler and cleaner and easier, giving more control than traditional smokers. Wood pellets are dense, burn hot and smooth, and can be easily fed into the flame with an automatic auger, allowing for consistent temperature with minimal effort. Many modern smokers let you practically set it and forget it, thanks to their digital controllers. Pellet grills are also efficiently cheap, often using as little as 1lb of pellets an hour.
My brother said his Traeger blanket saved pellets in cold weather, so after talking to him I decided to order one. Used it for the first time today. The blanket went on easily & fit the grill perfectly. The temps this a.m. was below 0 when the meat started smoking. So far so good! The grill hasn't extinguished itself, a problem we always had when cooking in the cold, the temp of the grill is cooking like it does in the summer, & the meat is smoking beautifully. If you Traeger in cold winters this accessory is a must have!
Wood pellet grills look like standard barbecue grills but some with a separate firebox for making smoked meats that will also let you smoke vegetables and other ingredients. As Traeger and Pit Boss both get good reviews from customers, it’s important that you look at the top features of this grills and how each company compares in relation to those features.