Stockholders approve Vista Outdoor deal

Vista Outdoor stockholders approved a deal Monday for the ammunition making operations of the company to be sold to the Czechoslovak Group (CSG).

The ammunition manufacturing of Vista Outdoor includes Lewiston’s CCI/Speer, one of the largest employers in the Lewiston-Clarkston Valley, along with Federal, Remington and Hevi-Shot. Together they are the largest cartridge producer in the United States.

People throughout the world have been following a more than year-long bidding war for Vista Outdoor’s ammunition operations closely.

The ammunition operations, known as The Kinetic Group, will shift from being part of a publicly traded company based in the United States to being part of a private business that has its global headquarters in the Czech Republic.

CSG is acquiring The Kinetic Group for $2.23 billion, according to a Vista Outdoor news release issued in mid-November.

Under the terms of the transaction, Vista Outdoor stockholders will receive $25.75 in cash and one share of Revelyst common stock for each share of Vista Outdoor common stock they hold, according to a Monday Vista Outdoor news release.

Revelyst is the name of the Vista Outdoor’s recreation products segment, which has more than 25 brands such as Camelbak, Simms fishing, Bushnell Golf, Bell helmets, Giro and Camp Chef.

The sale to CSG will be closed Wednesday, according to the Monday news release.

About 98% of the votes cast were for the CSG transaction, representing about 83% of all outstanding shares, according to the Vista Outdoor news release.

“We are thrilled to have received overwhelming support from our stockholders for the compelling transaction with CSG,” Michael Callahan, chairperson of the Vista Outdoor Board of Directors, said in a news release. “The CSG transaction maximizes value for our stockholders, while also providing an ideal home for our leading ammunition brands and significant opportunities for our employees.”

CSG has stated previously it plans to retain all of The Kinetic Group’s U.S. employees and invest in the businesses so they are stable and in a position to grow. CSG’s U.S. headquarters are in Virginia.

The new U.S. staff members will join a company that has more than 10,000 employees and operates in the defense and security industries as well as the automotive, aviation and rail sectors, according to CSG’s website.

“The product portfolio is extremely diverse and includes heavy off-road vehicles, radars, air traffic control systems, ammunition of all calibers and luxury wristwatches,” according to the CSG website.

Michal Strnad is the chairperson of the board and owner of CSG, who focuses on new acquisitions and key business projects, according to CSG’s website.

Strnad is the son of the company’s founder, Jaroslav Strnad, who began the business in 1995 trading in military material and equipment, according to CSG’s website.

In 2018, the elder Strnad handed ownership of the company to the younger Strnad.

After the CSG transaction closes, Revelyst will begin trading on the New York Stock exchange under the ticker “GEAR,” according to a Vista Outdoor news release.

Following regulatory approvals and satisfaction of other customary closing conditions, funds managed by Strategic Value Partners (SVP) will acquire Revelyst in an all-cash transaction based on an enterprise value of $1.12 billion, subject to a net cash adjustment, according to a Vista Outdoor news release.

At the close of the SVP transaction, Revelyst stockholders will receive an estimated $19.25 in cash per share of Revelyst common stock, according to the Vista Outdoor news release.

The SVP deal is expected to close by the end of January and isn’t subject to a separate vote of Vista Outdoor stockholders, according to the Vista Outdoor news release.

Williams may be contacted at ewilliam@lmtribune.com or (208) 848-2261.