Vista Outdoor's Ammunition Division Sparks Intense Bidding Battle
Vista Outdoor has attracted a higher bid for its ammunition division, The Kinetic Group, igniting a competitive takeover scenario between major industry players.
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Highlights
- Vista Outdoor received an enhanced bid from Prague-based defense firm Czechoslovak Group for its Kinetic Group ammunition segment.
- The offer increased by $50 million, reaching $2.15 billion, which Vista recommends shareholders approve.
- Private equity firm MNC Capital Partners maintains its $42-per-share proposal to acquire the entire company.
Shares of Vista Outdoor (VSTO) surged following the announcement that it endorses a stronger acquisition offer from the Czechoslovak Group for The Kinetic Group, its ammunition manufacturing unit.
This strategic move aims to counter a full-company acquisition bid by MNC Capital Partners, emphasizing Vista's focus on maximizing shareholder value.
CSG's revised bid includes an additional $50 million, totaling $2.15 billion, for The Kinetic Group, known for leading ammunition brands like Remington and Federal. Additionally, Vista plans to provide shareholders with an extra $125 million in cash.
Competing Offers and Strategic Outlook
Vista highlights that CSG's offer surpasses MNC Capital's $42-per-share bid for the entire company. The company intends to maintain its Revelyst division, responsible for Giro and Bell helmets, as an independent entity.
Vista Chairman Michael Callahan expressed confidence that the agreement with CSG delivers optimal value to shareholders while enabling Revelyst to thrive independently.
The shareholder meeting initially set for tomorrow has been postponed to July 30, with the transaction expected to finalize by early August. Vista also reaffirmed its fiscal 2025 projections, anticipating sales between $2.67 billion and $2.78 billion and adjusted EBITDA ranging from $410 million to $490 million.
As of Monday morning, Vista Outdoor shares climbed 1.4% to $38.10, marking a nearly 30% increase this year.
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