Vista Outdoor Clears Sales Hurdle, Receives Another Offer

by
posted on April 4, 2024
Vista Outdoor Sale
Image courtesy of VistaOutdoor.com.

On March 22, Vista Outdoor announced it cleared a major U.S. Security and Exchange Commission (SEC) regulatory hurdle in its effort to split into two companies and, ultimately, sell The Kinetic Group of legendary ammunition manufacturers to Czechoslovak Group (CSG). Only three days later, Vista received a revised proposal from Canada-based MNC Capital (MNC), boosting its original offer to pay $35 per share to $37.50. Financial experts estimate, if agreed upon, that sale price would be roughly $3 billion instead of MNC’s original all-cash $2.9 billion submission for consideration.

The SEC declaration that a registration statement filed by Vista Outdoor subsidiary Revelyst was in effect—mandatory for the company’s split—came the third week in March. It cleared another obstacle standing in the way of selling Federal, CCI, Remington Ammo and others in The Kinetic Group, to CSG for roughly $1.91 billion.

“The Board remains steadfast in our support for the proposed transaction and the value it will create for our stockholders,” Michael Callahan, chairman of the Vista Outdoor Board of Directors, said at the time. “CSG’s ownership of our American-based ammunition brands will provide the communities where our plants are located and our 4,000 workers here in the United States and The Kinetic Group’s experienced US-based executive management team with a steady, long-term owner that is fully committed to investing in the American workforce, American hunters and domestic and allied military and law enforcement partners. On the Revelyst side, with an energized senior management team, the GEAR Up transformation plan ensures that the segment is well-positioned to thrive as a standalone public company and deliver greater value for our stockholders.”

MNC made its original offer only three weeks before the SEC announcement. Late last year, Colt CZ Group put forth a proposal valued at $1.7 billion, which was also turned down. Under terms of both refused proposals, the entire 41-family of firms would be sold, not just those in the ammunition industry.   

Vista originally announced plans to split its family of firms into two independent and separate companies in 2022.

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