Simms Bought for $192 Million

I bet they start leaking money right out of the box....

I've been part of a couple outdoor style apparel companies that got bought out recently and it seems like it never makes the company better. I'll hope that they leave Simms as it is but will believe it when I see it. Typically they wait a year or so until customers forget about the buyout and then slowly creep towards lower quality at higher prices.

Wonder what Simms annual sales are? $25-50 mill?
 
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I don't think that I ever heard of Vista sports. Is it a well known name or a fly by night kind of one?
 
The writing was on the wall when they took the private equity injection from Castanea Partners about 5 years ago. Time will tell all, but I suspect Vista will push heavier into the general fishing/outdoor lifestyle apparel category and leave the fly fishing specific side to waste away. May prove fortuitous for newcomer Skwala if they play the hand right.
 
GOTY said:
but they split into two divisions to keep guns/ammo/etc under a separate entity.
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If that was the goal, their definitions of "sporting and "outdoors" are pretty funny. I'm sure there are plenty of folks using Hoppe's to clean their camping gear and RCBS to make waterproof pill holders. I myself keep a PB&J in a Gun Mate holster for quick draw snacking.
 
That's really unfortunate. I like Simms and own a few of their products including a pair of waders and boots but I don't really like supporting the type of business that just acquired them.
 
Say bye bye to warranty coverage.
Get those leaky waders in NOW!
 
I own plenty of products by those companies, Stone glacier being at the top of my list of hunting gear and backpacking gear. I’ve been a faithful supporter of Simms and will continue to be until proven otherwise.
 
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Josh said:
If that was the goal, their definitions of "sporting and "outdoors" are pretty funny. I'm sure there are plenty of folks using Hoppe's to clean their camping gear and RCBS to make waterproof pill holders. I myself keep a PB&J in a Gun Mate holster for quick draw snacking.
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It's just purely optics and politics at work. Many pension plans/university endowments/hedge funds/politically charged entities are being pressured to divest of any and all companies (i.e. sell their stock) if those companies have anything to do with guns, ammo, and/or anything that gets headlines (oil was a big one until recently....). This type of split is quite common to get around that.

An extreme example would be a company could generate $100 billion in revenue from solving world hunger, but if they also made $2 from selling a single bullet, they are deemed uninvestible by many. Letting some other entity book the revenues from that $2 gets around it. Safe to say Simms won't be bucketed alongside Remington.
 
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