You want even grilling: One of the downsides of using a charcoal grill is ensuring that the entire grilling area is evenly heated. Spreading the charcoal evenly and avoiding hot spots is difficult. Traeger’s pellet grilling system overcomes this problem with a fan that evenly distributes the heat throughout the grilling area, much like a wood-fired oven would have.
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.
But as said, there are a few things we don’t like; it’s relatively small, doesn’t have a lot cooking space, and the design feels cramped. At the same time, it’s still relatively heavy at 140 lbs. For the same price, you could choose the Z-Grills Master 700D, which packs almost 25% more surface area on the rack. That doesn’t seem like much but is a significant amount of room. Or you could just spring for the Traeger Pro 22. There have also been reports of poor quality control, and that the temperature control is very inconsistent, often swinging up and down nearly 30 or 40 degrees.
A portable offering from Green Mountain Grills, the Davy Crocket is the most affordable pellet grill on our list, and the only one with WiFi capability. It’s compact, weighs only 57 pounds, and has folding legs so you can pack it up and bring it camping, tailgating, or to the beach. That’s something you can’t do with the Traeger Pro 22, and something we’re really excited about.
Each of the alternatives to the Traeger Pro we’ve reviewed above is an excellent choice for an affordable pellet smoker. We think the Z Grills Master 700D is worth every penny and competes with the Traeger for even less money. We highly recommend you check it out. It has an even larger grill area, a larger hopper, burns just as consistently, and produces some perfectly smoked and grilled meats.
With 341 square inches of cooking space and a digital control board that sets the temperature from 180 to 500 degrees, you’ll be cooking whole meals in this grill, even though it’s the smallest model that Pit Boss makes. It will hold up to a dozen burgers for parties, or a chicken and vegetables for the family dinner. When cooking is done, the porcelain coated grill grates are easy to clean.