After fending off months of hostile suitors for the sporting goods and ammunition maker, Vista Outdoor agreed Friday to sell part of itself to two separate buyers for a total of $3.35 billion, including debt. .
Vista has reached an agreement to sell its sporting goods unit Revelyst to investment firm Strategy Value Partners for $1.1 billion, according to a statement seen by Reuters.
It also agreed to amend the terms previously agreed deal Sold its ammunition business Kinetic to Prague-based defense contractor Czechoslovak Group (CSG).
CSG has increased its offer for Kinetic by $75 million to $2.2 billion. The company also initially agreed to acquire a 7.5% stake in Revelyst for $150 million, but will no longer do so.
Combined, the two deals value Vista at $45 per share, compared with $43 per share for rivals Quote from MNC Capitalis an investment firm led by former Vista board member Mark Gottfredson. MNC has attempted to acquire Vista several times this year.
“The board of directors works tirelessly to maximize value for shareholders, and we are pleased to have reached this agreement with our senior vice president and CSG, which will help us achieve that goal,” Michael Callahan, chairman of Vista's board of directors, said in a statement.
The transaction has been approved by Vista's board of directors. The sale of Revelyst is expected to close in January, subject to regulatory approvals and the completion of the CSG transaction.
The complex deal needs to be submitted to Vista shareholders for a vote.
The company's earlier deal with CSG Group received mixed recommendations from proxy advisory firms. Glass Lewis recommends that Vista shareholders vote in favor of the ammunition division's proposed merger with CSG, while Institutional Shareholder Services recommends voting against the deal.
Minnesota-based Vista is the parent company of the Federal Ammunition and Remington Ammunition brands, and its outdoor product brands include Foresight Sports, CamelBak, Bushnell Golf and Simms Fishing.
The months-long saga involving Vista and MNC is playing out against the backdrop of growing demand for military supplies since the Russia-Ukraine conflict escalated in 2022.
“With this investment, we plan to put SVP's full operational resources and network behind Revelyst to help accelerate the success of this market leader,” said David Geenberg, head of SVP's North American corporate investment team.
The bidding war for Vista started earlier this year. Vista rejected multiple offers from multinational companies and supported CSG Group's bid for Kinetic. In June this year, CSG's transaction was approved by the Committee on Foreign Investment in the United States, which is responsible for reviewing possible national security issues in foreign investments. The Colleyville, Texas-based multinational argued that the deal with CSG would pose a national security threat.
In July, Vista launched a strategic review to explore all its options after failing to gain investor support for a CSG deal. The company has been forced to delay shareholder votes to approve the deal with CSG several times in recent months in an attempt to fend off repeated proposals from the multinational.
In September, MNC submitted a revised offer worth $3.2 billion that included debt and said it would partner with an unnamed private equity firm that will own the Revelyst business to finance its acquisition. Vista later separately approached the private equity firm, which sources described as Strategy Value Partners, about a deal for the sporting goods business.
Vista Outdoor's stock price rose about 35% from the beginning of the year and closed at $39.84 on Friday. The company has a market value of approximately $2.33 billion.
SVP was founded in 2001 by investor Victor Khosla and manages approximately $19 billion in assets.
Morgan Stanley advised on the Vista deal, while Moelis advised the company's board of directors. Goldman Sachs serves as advisor to the senior vice president, and J.P. Morgan serves as advisor to CSG.