Vista Outdoor Inc. has confirmed an increase in the purchase price for the acquisition of the Kinetic Group business by $50 million, bringing the total to $1.96 billion. This reflects a 24% increase in the cash consideration delivered at closing in the transaction, amounting to $16.00 per share of Vista Outdoor common stock, up from $12.90 per share in the previous agreement.
In addition, Vista Outdoor will be returning approximately $130 million of excess cash to its stockholders as part of the cash consideration in the transaction. Following the closing of the transaction, Revelyst, the acquiring company, intends to distribute any cash on hand in excess of $250 million to its stockholders in the form of a share buyback or special dividend.
The transaction is expected to close in the calendar year 2024, subject to approval from Vista Outdoor’s stockholders, clearance by the Committee on Foreign Investment in the United States (CFIUS), and other customary closing conditions. Vista Outdoor has expressed confidence in its ability to receive CFIUS clearance for the transaction and satisfy all other closing conditions.
Vista Outdoor is the parent company of over three dozen renowned brands, including Bushnell, CamelBak, Giro, Federal Ammunition, and Remington Ammunition, among others.
This update comes as Vista Outdoor continues to make strides in its financial performance, with the company generating excess cash in its fourth quarter, prompting the decision to return a portion of it to stockholders. The market has reacted to these announcements by moving the company's shares -1.1% to a price of $34.5. Check out the company's full 8-K submission here.
