New deals on table for Vista Outdoor
Czech group looks to purchase sharesof rec products in addition to ammo
The interest of the Czechoslovak Group (CSG) in Vista Outdoor now extends to a stake in its recreational products segment.
CSG wants to purchase shares representing 7.5% of what its recreational products segment called Revelyst would be if it were a stand-alone company, according to a news release issued Friday by Vista Outdoor.
Revelyst, under Vista Outdoor’s present plans, is poised to be spun off into a separate, publicly traded company, according to the Minneapolis Star Tribune.
Until now, CSG has only been trying to acquire Vista Outdoor’s ammunition-making segment, which includes Lewiston’s CCI/Speer. CSG’s offer for the ammunition segment, called The Kinetic Group, is at $2.15 billion.
The developments are the most recent wrinkle in the continuing bidding war for Vista Outdoor. Based in the Czech Republic, CSG’s proposal to acquire Vista Outdoor first became public in October 2023. It has since been revised multiple times, but, until Friday, has never included any portion of Revelyst.
Other parties have made offers, including Dallas-based MNC Capital Partners, which, like CSG, has revised its terms numerous times. But unlike CSG, MNC wants to buy all of Vista Outdoor.
Vista Outdoor’s board of directors still backs the CSG deal, which is scheduled for stockholder vote on Sept. 27, according to Friday’s news release.
“Documentation delivered to the board in connection with the MNC revised proposal implies a value of $1.9 billion for The Kinetic Group and $1.2 billion for Revelyst. In comparison, the revised CSG transaction represents a value of $2.15 billion for The Kinetic Group and an investment in Revelyst at a value of $2 billion,” according to Vista Outdoor’s news release.
Vista Outdoor’s board also raised a concern in the news release about Gates Capital, describing it as a “conflicted party.”
“The board recently learned that the (Vista Outdoor’s) second largest stockholder, Gates Capital Management, is included in MNC’s equity consortium,” according to the news release. “Given its involvement with MNC, Gates Capital’s public expression in favor of MNC’s proposal reflects a bias and conflict of interest.”
MNC is led by Mark Gottfredson, a former Vista Outdoor board member.
Besides CCI/Speer, The Kinetic Group includes Federal, Remington and HEVI-Shot. Together they are the largest ammunition maker in the United States.
Brands that have bicycling gear like Bell, Giro and Blackburn are a part of Revelyst along with many others such as Camelbak, Simms fishing gear, Camp Chef and Bushnell Golf.
Williams may be contacted at ewilliam@lmtribune.com.
