Vista vote may push purchase to the cusp of reality

A stockholder vote on a deal for the Czechoslovak Group to acquire the ammunition operations of Vista Outdoor is set for Nov. 25, the Monday before Thanksgiving.

The vote of Vista Outdoor stockholders is one of the last steps to complete a transaction where The Kinetic Group of Vista Outdoor, including Lewiston’s CCI/Speer, would be sold to the Czechoslovak Group (CSG) for $2.23 billion.

“Vista Outdoor and CSG have received all regulatory approvals required under the (sale) agreement for the CSG transaction and are prepared to close the CSG transaction, subject to receipt of stockholder approval and satisfaction of customary closing conditions,” according to an Oct. 24 news release from Vista Outdoor.

Vista Outdoor expects that its recreation products segment called Revelyst will be acquired by Strategic Value Partners for $1.13 billion. Revelyst has more than 25 brands such as Camelbak, Simms fishing, Bushnell Golf, Bell helmets, Giro and Camp Chef.

Strategic Value Partners (SVP) is a global investment firm with about $19 billion in assets under management, according to Vista Outdoor.

“No separate approval of the SVP transaction by Vista Outdoor stockholders is required,” according to the Vista Outdoor news release. “The SVP transaction is subject to the closing of the CSG transaction, as well as the receipt of necessary regulatory approvals and other customary closing conditions.”

The upcoming vote would be part of resolving a bidding war for Vista Outdoor that has been unfolding for more than a year. Parties have made various offers for the entire company and The Kinetic Group.

“After the company announced its intention to separate Revelyst and The Kinetic Group in May 2022, the board undertook a thorough process to unlock shareholder value, engaging with 26 counterparties that were each given fair and full consideration,” according to a Sept. 18 news release from Vista Outdoor.

Vista Outdoor leaders put careful thought into the potential deals with SVP and CSG, which originally offered $1.91 billion last October for The Kinetic Group and has increased its price several times.

People in the region and throughout the nation have been following the deal closely for a variety of reasons.

CCI/Speer is one of the largest employers in the Lewiston-Clarkston Valley. Vista Outdoor’s ammunition-making segment, which also includes Federal, Remington and Hevi-Shot, is the largest cartridge producer in the United States.

If the transaction closes, The Kinetic Group would shift from being part of a publicly traded company based in the United States to being part of a private business, which has its global headquarters in the Czech Republic.

CSG 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, according to CSG’s website, which has a question-and-answer section about the proposed acquisition of The Kinetic Group.

CSG’s U.S. headquarters are in Virginia and the CEO of CSG-USA is Paul Lemke, a retired lieutenant colonel in the U.S. Army.

The new U.S. staff members would 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.

CSG is the fourth largest ammunition producer in the European Union, according to Forbes.com.

The company is “100% controlled and led by entrepreneur Michal Strnad,” according to the 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 Michal Strnad, who has a net worth of $4.4 billion, according to Forbes.com, ranking 799th on the publication’s list of the world’s billionaires.

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