Vista Outdoor Agrees to Sell in Parts for $3.35 Billion

By Anirban Sen and Abigail Summerville

NEW YORK (Reuters) – Vista Outdoor (NYSE:VSTO) has agreed to sell itself in parts for $3.35 billion, including debt, after enduring a lengthy pursuit from a hostile suitor.

Sale Details

Vista will sell its sporting goods unit Revelyst to Strategic Value Partners for $1.1 billion, as per a statement from Reuters. Additionally, it has amended its deal with Czechoslovak Group (CSG) to sell its ammunition business, Kinetic. CSG has increased its offer by $75 million to $2.2 billion. The earlier plan for CSG to acquire a 7.5% stake in Revelyst for $150 million is no longer in effect.

Combined, the transactions value Vista shares at $45 each, surpassing a rival bid of $43 per share from MNC Capital, led by former Vista board member Mark Gottfredson. Michael Callahan, chairman of Vista’s board, expressed satisfaction in reaching these agreements, which aim to maximize shareholder value.

Approvals Needed

The board has approved the transactions, with the sale of Revelyst expected to close by January, pending regulatory approvals. Shareholders will also need to vote on the merger with CSG. Proxy advisory firms have offered mixed recommendations regarding the CSG deal—Glass Lewis supports it, while Institutional Shareholder Services advises against it.

Background

Vista, which oversees the Federal and Remington ammunition brands, along with outdoor products like Foresight Sports and CamelBak, has navigated heightened demand for military supplies due to the Russia-Ukraine conflict since 2022.

David Geenberg of SVP stated their intent to leverage resources to support Revelyst’s growth. The ongoing bidding war for Vista saw multiple offers from MNC, which raised national security concerns about the deal with CSG. Following a strategic review due to investor support issues and multiple postponed shareholder votes, Vista ultimately engaged with SVP concerning the Revelyst business.

Vista’s shares have appreciated about 35% this year, closing at $39.84 on Friday, positioning the company at a market value of approximately $2.33 billion.

Advisory Roles

Morgan Stanley advised Vista on the deal, while Moelis supported the company’s board. Goldman Sachs acted as an advisor for SVP, and JPMorgan guided CSG.