Vista Outdoor Rejects $2.9 Billion Offer

by
posted on March 14, 2024
Vista Outdoor Rejects
Image courtesy of VistaOutdoor.com.

On March 4, the Vista Outdoor Board of Directors announced that it rejected yet another unsolicited proposal to sell the firm, this one from Canada-based MNC Capital (MNC) offering to buy the company for $35 per share. A Nasdaq news report estimated the value at roughly $2.9 billion. Vista has now turned down two offers since the firm entered into a definitive agreement to sell its Sporting Products division to Czechoslovak Group (CSG) on Oct. 1 for $1.91 billion.

Vista first announced its plan to split into two separate corporations in May 2022, a strategic move for shareholders in step with the current agreement. Under its terms, CSG would assume ownership of some of the industry’s biggest ammunition and component makers—including Federal, CCI, Remington Ammo, Speer and Hevi-Shot. The remainder of Vista’s 41-firm portfolio would then fall under a new corporation umbrella.

Enthusiast concerns over the agreement were largely put to rest in January, when CSG’s David Stepan and David Blenker—president of Fiocchi’s United States operations—answered questions in a frank discussion with American Rifleman. That video is found here.

Headquarters for the famed American firms would remain in Anoka, MN. “We are confident that CSG is a great home for our leading ammunition brands,” Jason Vanderbrink, CEO of Vista Outdoor Sporting Products said shortly after the deal was inked. “The company is fully committed to our iconic American brands and expanding our legacy of U.S. manufacturing, support for military and law enforcement customers, and investments in conservation and our hunting and shooting heritage. We are excited to work closely with the CSG team as we enter this next phase and position our brands for long-term success.”

MNC’s offer was to purchase all of Vista Outdoor, not just its Sporting Products division. Terms were similar in the deal offered by Colt-CZ Group in November. The had a value of roughly $1.7 billion, however. It was turned down by the Vista Board in later that month.

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