Vista to sell works to Czech group

Vista Outdoor plans to sell its ammunition-making plants, including its Lewiston operations, to a manufacturer called the Czechoslovak Group for $1.91 billion in a deal expected to close next year.

The transaction is happening with $1.11 billion of “fully committed debt financing with the remaining amount funded by (the Czechoslovak Group),” according to a news release issued Monday by Vista Outdoor about the transaction.

The Czechoslovak Group (CSG) is the fourth-largest ammunition manufacturer in the European Union and produces other products such as army trucks and radars, according to Forbes.com.

“CSG is 100% owned and led by Michal Strnad, who has transformed it into a leading Czech industrial group with a strong international footprint,” according to the Vista Outdoor news release.

The company was founded in 1995 by Strnad’s father, Jaroslav Strnad. The younger Strnad, 30, who has a net worth of $1.9 billion, inherited CSG from his father in 2018, according to Forbes.com.

The sale is a “great outcome,” Jason Vanderbrink, Vista Outdoor’s Sporting Products CEO, who will remain in that position after the sale, said in a conference call for stock market analysts Monday after the announcement.

“CSG is a world-class company with experience in our industry,” Vanderbrink said. “... CSG is based in Prague and is fully committed to our iconic American brands and expanding our legacy of U.S. manufacturing in our support of hunting and shooting heritage.”

Michael Strnad had a similar take.

“We look forward to building on the company’s success in delivering innovative, quality products and are confident in the long-term value we can create together,” Strnad said in the news release.

About 1,400 of the 4,500 employees in Vista Outdoor’s Sporting Products segment work at Lewiston’s CCI/Speer, one of the largest employers in north central Idaho and southeastern Washington.

The other Sporting Products brands are Federal, HEVI-Shot and Remington. CSG has more than 10,000 employees at its companies and affiliates.

The U.S. headquarters of what are now Vista Outdoor’s manufacturing operations will continue to be in Anoka, Minn., near Minneapolis.

Vista Outdoor had previously announced plans to split the ammunition manufacturing segment from a portion of the Outdoor Products segment of the company with brands such as Camp Chef, Camelbak and Simms Fishing.

After the sale of the Sporting Products group to CSG, the outdoor products segment will become Revelyst and trade under the ticker “GEAR” on the New York Stock Exchange.

“This sale to CSG is really a pivotal time for all of us,” Eric Nyman, CEO of Vista Outdoor’s Outdoor Products segment, said in the conference call.

“It gives us the chance to focus on our performance improvement, knowing that we’ll emerge as a public company without debt,” Nyman said.

The transaction for the bullet-making operations is subject to approval of stockholders and will require regulatory approvals. The deal is expected to be finalized in 2024.

“We continue to believe that the separation will unlock significant stockholder value, as each segment will have a dedicated strategic focus and its own set of competitive advantages,” said Gary McArthur, Vista Outdoor’s interim CEO.

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