Vista Outdoor Inc. has announced an increase in the purchase price for the acquisition of the Kinetic Group business by Czechoslovak Group a.s. (CSG) to $2 billion, representing a $40 million increase from the original purchase price. As part of this amended agreement, the cash consideration payable to Vista Outdoor stockholders has also been raised to $18.00 per share of Vista Outdoor common stock, a 12.5% increase from the previous amount of $16.00.
Moreover, Vista Outdoor will be returning an additional approximately $77 million of excess cash to its stockholders as part of the cash consideration in the CSG transaction. This return of excess cash is in addition to the increase in the purchase price payable by CSG, providing additional benefits to the stockholders.
The company's board of directors has reaffirmed its recommendation that stockholders vote in favor of the CSG transaction, expressing confidence that it will maximize value for stockholders. The amended agreement is expected to provide stockholders with a $90 million increase from the original purchase price, allowing them to benefit directly from additional excess cash generated by the company prior to closing.
Furthermore, the transaction will deliver $18.00 in cash consideration per share at closing, representing a $5.10 increase from the original cash consideration of $12.90 per share. This development is aligned with the company's commitment to maximizing value for its stockholders and leveraging the intrinsic value embedded in Revelyst’s business plan as a standalone public company.
The CSG transaction is anticipated to close in the calendar year 2024, subject to approval of Vista Outdoor’s stockholders, receipt of clearance by the Committee on Foreign Investment in the United States (CFIUS), and other customary closing conditions. The company remains confident in its ability to receive CFIUS clearance for the transaction and that all other closing conditions will be satisfied.
It is worth noting that the transaction with CSG brings a strong commitment to U.S. manufacturing and the American workforce, along with deep expertise in supply chain excellence, ammunition manufacturing, and support for NATO and allied nations. Additionally, CSG's ownership of Vista Outdoor’s leading ammunition brands is expected to provide stable, long-term ownership and investment in the American workforce, American hunters, and domestic and allied military and law enforcement partners.
Vista Outdoor Inc. is the parent company of more than three dozen renowned brands that design, manufacture, and market sporting and outdoor products. With brands like Bushnell, CamelBak, Giro, and Federal Ammunition under its umbrella, the company is focused on providing consumers with a wide range of performance-driven, high-quality, and innovative outdoor and sporting products. The market has reacted to these announcements by moving the company's shares 2.5% to a price of $34.99. If you want to know more, read the company's complete 8-K report here.
