Vista Outdoor Inc. (NYSE: VSTO) has announced an increase in the purchase price for the acquisition of the Kinetic Group business from Czechoslovak Group a.s. (CSG) to $2.15 billion, representing a $240 million increase from the original price. As a result, the cash consideration payable to Vista Outdoor stockholders in the CSG transaction has increased by $3.00 per share to $24.00 in cash per share of Vista Outdoor common stock.
The company has reported preliminary, unaudited Q1 fiscal year 2025 results, indicating a strong financial position. Vista Outdoor expects sales in the range of $2.665 billion to $2.775 billion for fiscal year 2025, with the Kinetic Group sales expected to be approximately $1.425 billion to $1.475 billion and Revelyst sales expected to be approximately $1.240 billion to $1.300 billion.
Furthermore, the company anticipates adjusted EBITDA in the range of $410 million to $490 million for fiscal year 2025. The Kinetic Group's adjusted EBITDA is expected to be approximately $350 million to $400 million, while Revelyst's adjusted EBITDA is expected to be approximately $130 million to $160 million.
Following the closing of the CSG transaction, Revelyst is expected to pursue a 12-month $50 million share repurchase program, subject to approval by the Revelyst board of directors.
Andrew Keegan, the CFO of Vista Outdoor, highlighted the company's strong balance sheet, with net debt decreasing by $81 million during the quarter to $579 million. Additionally, Revelyst has made significant progress in reducing inventory levels, with an approximately $100 million reduction from the previous year and nearly $10 million sequentially from the prior quarter.
As a result of these announcements, the company's shares have moved 0.8% on the market, and are now trading at a price of $37.57. For more information, read the company's full 8-K submission here.
