Vista Outdoor Inc. has announced its agreement to sell Revelyst in an all-cash transaction based on an enterprise value of $1.125 billion to funds managed by Strategic Value Partners, LLC (SVP). This transaction is contingent upon the completion of the acquisition of the Kinetic Group by Czechoslovak Group a.s. (CSG), for which the purchase price has been increased to $2.225 billion.
The two transactions, the SVP transaction and the CSG transaction, represent an enterprise value of $3.35 billion for Vista Outdoor and will deliver an estimated $45 per share in cash to Vista Outdoor stockholders.
At the closing of the CSG transaction, CSG will pay Vista Outdoor $2.225 billion, and Vista Outdoor stockholders will receive $25.75 in cash per share and one share of Revelyst common stock for each share of Vista Outdoor common stock. Additionally, at the closing of the SVP transaction, SVP will pay Revelyst stockholders an aggregate of $1.125 billion, representing an estimated $19.25 in cash per share of Revelyst common stock.
The SVP transaction is expected to close by January 2025, subject to the completion of the CSG transaction and necessary regulatory approvals. The CSG transaction has received all required regulatory approvals under the merger agreement and is prepared to close before the end of 2024, subject to stockholder approval and other customary closing conditions.
Vista Outdoor, CSG, and SVP have agreed to certain amendments to the separation agreement currently in place to separate the Kinetic Group and Revelyst. As part of the SVP transaction and the CSG transaction, CSG will no longer be investing in Revelyst at the closing of the CSG transaction.
Vista Outdoor will adjourn the special meeting of stockholders currently scheduled for October 9, 2024, and additional details will be filed with the U.S. Securities and Exchange Commission.
Morgan Stanley & Co. LLC is acting as the sole financial adviser to Vista Outdoor, and Cravath, Swaine & Moore LLP is acting as the legal adviser to Vista Outdoor. Moelis & Company LLC is acting as the sole financial adviser to the independent directors of Vista Outdoor, and Gibson, Dunn & Crutcher LLP is acting as the legal adviser to the independent directors of Vista Outdoor. J.P. Morgan is acting as the sole financial adviser to CSG, with Clifford Chance LLP acting as the legal adviser.
Vista Outdoor (NYSE: VSTO) is the parent company of more than three dozen renowned brands, including Bushnell, CamelBak, and Giro. SVP is a global alternative investment firm with approximately $19 billion of assets under management, and CSG is a global industrial and technological group owned by Czech entrepreneur Michal Strnad. As a result of these announcements, the company's shares have moved 10.1% on the market, and are now trading at a price of $43.87. For the full picture, make sure to review Vista Outdoor's 8-K report.
