Vista Outdoor Inc. will save $50 million by restructuring its bicycle brands.
The Anoka-based company also named Jason Vanderbrink, president of its ammunition brands since 2017, as CEO of the sporting products segment before it spins off from the rest of the company. The unit — which includes ammunition brands Federal, Remington and Speer — will remain in Anoka.
The other outdoor sports businesses, including the bike segment, will remain under the Vista umbrella and move to Bozeman, Mont.
The company said the restructuring plan and Vanderbrink's promotion are in preparation for the split into two companies, which is expected before the end of the year.
The restructuring will involve layoffs and office space consolidation among the bike brands, which include Bell, Blackburn, Copilot, Fox, Giro, Krash and Raskullz. Vista said in a Securities and Exchange Commission it will close the Bell/Giro headquarters in Scotts Valley, Calif., by Sept. 1 and consolidate those operations with its Fox Racing brand offices in Irvine, Calif.
The company did not say how many people would be laid off or moved to other locations.
The restructuring, Vista said, was needed because of elevated retail inventory levels and continued high interest rates and inflation.
Vista Outdoor made its filing with the SEC after the stock market closed Monday. Shares closed Monday at $27.52, up 13% year-to-date.