Agreement with Vista Outdoor reaches $2 billion

Vista Outdoor agreed to new terms with Czechoslovak Group, increasing its base purchase price to $2 billion for the ammunition-making operations. 

Vista Outdoor announced in a news release Sunday that the company agreed to new terms. The price for acquiring the Kinetic Group business increased by $40 million from $1.96 billion to $2 billion. According to the news release, it also raised Vista Outdoor's stock from $16 to $18 per share. At the closing of the transaction, stockholders will receive one share of Revelyst common stock per share of Vista Outdoor common stock and $18 in cash. The new agreement will return approximately $77 million in excess cash to stockholders as part of the transaction with the Czechoslovak Group, in addition to the increase in the purchase price payable that will be delivered to stockholders, according to the news release. 

The Kinetic Group includes Lewiston’s CCI/Speer, Federal, Remington and HEVI-Shot, which together are the largest ammunition makers in the U.S. 

The news release states that Vista Outdoor is “fully committed” to the Czechoslovak Group, and the board of directors continues to recommend stockholders vote in favor of the transaction, citing the increase in purchase price, stockholders benefiting from excess cash and the increase of prices per share. The shareholder vote will take place July 2.

The transaction is expected to be completed by the end of the year after approval from stockholders and the Committee on Foreign Investment in the United States, according to the news release.  

An unnamed U.S.-based private investment firm withdrew its indication of interest with a $2 billion offer last week, leaving the Czechoslovak Group with the only offer for the company. The MNC Capital previously made a $3 billion offer to purchase all of Vista Outdoor, including outdoor brands such as Bell, Giro, Simms, Camelbak and Camp Chef, but was rejected by Vista Outdoor.