Vista Outdoor Inc. /zigman2/quotes/205852373/composite VSTO -0.90% announced Wednesday an agreement to buy motocross gear and equipment company Fox Racing for up to $590 million. Under terms of the deal, the shooting sports and outdoor products company will pay $540 million upfront, and could pay up to $50 million based on Fox Racing's financial performance. Vista Outdoor said the acquisition, which is expected to close in the second quarter of fiscal 2023, adds about $350 million to its revenue, and expects the deal to immediately add to earnings. ""With the acquisition of Fox Racing, we are continuing the successful implementation of our strategy to use accretive acquisitions to expand our leadership position and ability to capitalize on long-term growth opportunities in outdoor recreation," said Vista Chief Executive Chris Metz. The stock, which was still inactive in premarket trading, has tumbled 35.9% year to date while the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.16% has dropped 19.6%.
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