On March 28, Vista Outdoor announced it had voluntarily withdrawn and re-filed its joint voluntary notice to the Committee on Foreign Investment in the United States (CFIUS), a move that allows committee members additional time to conduct due diligence on the proposed sale of The Kinetic Group branch of Vista’s corporate portfolio to the Czechoslovak Group (CSG). CFIUS accepted the re-filing, opening a new review period.
“Our team is actively engaged with CFIUS, alongside CSG,” said Michael Callahan, chairman of the Vista Outdoor Board of Directors. “We’re pleased CFIUS accepted our re-filed notice, which will allow the work to continue. We remain confident in our ability to receive all necessary regulatory approvals, including with respect to CFIUS.”
Federal Ammunition, Remington Ammunition, CCI, Speer, Hevi-Shot, Estate Cartridge and Alliant Powder comprise Vista Outdoors’ The Kinetic Group of companies. Sale of the legendary ammunition and component manufacturers drew the attention of the Homeland Security Committee in Congress late last month, when Rep. Clay Higgins (R-La.) asked Treasury Secretary Janet Yellen to carefully review the acquisition. He noted the firms account for roughly 70 percent of primer production in the free world, a critical source for U.S. military, law enforcement and civilian enthusiasts. Vista’s refiling grants CFIUS members additional time to gather information and weigh Rep. Higgins’ concerns.
CSG issued a news release on April 9 reassuring the committee it has no intention of compromising national security. It explains, “We are a significant supplier to NATO and Ukraine and have no ties to Russia, China or other U.S. adversaries.” As for claims it will move production, “We have demonstrated our commitment to manufacturing in the U.S. Through our ownership of Fiocchi Munizioni, we already have a U.S. presence, with production facilities in Little Rock, Arkansas and Ozark, Missouri. In fact, we are currently considering expanding our U.S. production capacity. Any claim that CSG has eliminated U.S. jobs is completely wrong.”
Value of CSG’s offer for The Kinetic Group is $1.91 billion. In addition to CFIUS clearance, the sale remains subject to approval of Vista Outdoor’s stockholders, as well as other customary closing conditions.
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