Vista Outdoor Inc. has announced an increase in the purchase price for the acquisition of the Kinetic Group business by $100 million to $2.1 billion. The cash consideration payable to Vista Outdoor stockholders has also increased by $3.00 per share of Vista Outdoor common stock to $21.00 in cash.
The Vista Outdoor board unanimously recommends the CSG transaction as the most compelling for stockholders. The key highlights of the CSG transaction include the maximization of stockholder value, the realization of separation benefit, and ownership of upside in the value at Revelyst. The transaction also provides certainty and timing to close, and is the result of a competitive sale process.
Vista Outdoor reaffirms its annual guidance to double standalone Revelyst EBITDA in fiscal year 2025 with a clear path to achieve more than $100 million in run-rate cost savings by fiscal year 2027 and mid-teens EBITDA margins long-term.
The special meeting of Vista Outdoor stockholders to vote on a proposal to adopt the merger agreement with CSG is scheduled to be held virtually on July 23, 2024, at 9:00 a.m. Central Time.
Vista Outdoor also announced that it unanimously rejects MNC's final indication as inadequate and opportunistic. The final indication from MNC significantly undervalues Vista Outdoor as a whole and especially the Revelyst business.
The Vista Outdoor board has determined that the MNC final indication would not be more favorable to Vista Outdoor stockholders from a financial point of view than, and would not reasonably be expected to be superior to, the transactions contemplated by the CSG transaction.
Vista Outdoor's financial advisors have each delivered an opinion as to the fairness, from a financial point of view, of the consideration in the CSG transaction to the stockholders of Vista Outdoor’s common stock.
In response to MNC's final indication, the board has issued a letter to MNC, expressing the rejection of the offer.
The board of directors is committed to maximizing value for all stockholders and remains receptive to opportunities that will help achieve that goal.
With these developments, Vista Outdoor continues to focus on delivering value to its stockholders and ensuring the success of its business. The market has reacted to these announcements by moving the company's shares -1.0% to a price of $37.03. If you want to know more, read the company's complete 8-K report here.
