News

Vista Outdoor, Inc. has finalized agreements to divest two key business segments, marking a significant restructuring move for the outdoor products giant. The deals involve the sale of Revelyst, its outdoor products arm, and The Kinetic Group, its sporting products segment, in separate transactions expected to deliver an estimated $3.35 billion enterprise value for the company.

Under the terms of the first agreement, Vista Outdoor will sell Revelyst to funds managed by Strategic Value Partners (SVP) in an all-cash transaction valued at $1.125 billion. In a parallel deal, Vista amended its merger terms with the Czechoslovak Group (CSG), which has agreed to acquire The Kinetic Group for $2.225 billion.

Vista Outdoor issued a media release on Friday, October 4, confirming both deals and highlighting the newly enhanced offer from CSG. The latest price for The Kinetic Group supersedes CSG’s prior bid of $2.15 billion submitted in July.

Both transactions are contingent on each other, with completion of the CSG deal necessary for the SVP sale of Revelyst to proceed. Together, the deals are expected to deliver approximately $45 per share in cash to Vista Outdoor stockholders.

Revelyst is comprised of three segments: Adventure Sports, Outdoor Performance, and Precision Sports Technology. Its brands include Fox Racing, Bell, Giro, CamelBak, QuietKat, and Blackburn, among others. The Kinetic Group’s portfolio includes the ammunition brands Federal, Remington, CCI, Hevi-Shot, and Speer, serving a diverse range of outdoor and sporting markets.

“The Board has worked tirelessly to deliver maximum value to stockholders, and we are pleased to have reached these agreements with SVP and CSG, achieving that goal,” said Michael Callahan, chairman of the Vista Outdoor Board of Directors. He added that both deals emerged from a thorough review of strategic options, aimed at unlocking value for investors. “Through these separate yet interdependent transactions, we’ve mapped a path that highlights the true potential of both Revelyst and The Kinetic Group,” Callahan said.

David Greenberg, head of SVP’s North American corporate investment team, emphasized SVP’s enthusiasm for Revelyst’s future. “Revelyst’s portfolio is packed with strong, market-leading brands, and we believe it is well-positioned to capture further market share. We look forward to unlocking its full potential alongside its skilled leadership team,” Greenberg said.

CSG’s CEO Michal Strnad shared similar optimism about The Kinetic Group’s trajectory under CSG ownership. “The Kinetic Group has built a legacy of quality and innovation, and CSG is prepared to invest significantly in its continued success,” Strnad said. “We are confident this acquisition will benefit Vista Outdoor stockholders, Kinetic’s employees, and the broader American economy.”

Vista’s board has unanimously approved the SVP deal, which is expected to close by January 2025. Vista and CSG have received regulatory approvals for the CSG transaction and plan to close it by the end of 2024, pending stockholder approval.

At the closing of the CSG deal, Vista Outdoor stockholders will receive $25.75 per share in cash along with one share of Revelyst stock for each share of Vista Outdoor stock held. At the close of the SVP deal, Revelyst stockholders will receive $1.125 billion, adjusted to a net cash value estimated at $19.25 per share.

To accommodate the dual transactions, Vista Outdoor, CSG, and SVP have agreed to amend their existing separation agreement, with CSG no longer obligated to invest in Revelyst upon closing.

Vista Outdoor will adjourn its scheduled stockholder meeting set for October 9, 2024, in light of these developments.

Morgan Stanley & Co., LLC is serving as the sole financial adviser to Vista Outdoor, with Cravath, Swaine & Moore, LLP acting as legal counsel. Moelis & Company, LLC and Gibson, Dunn & Crutcher, LLP are advising Vista Outdoor’s independent directors. J.P. Morgan is acting as sole financial adviser to CSG, with Clifford Chance, LLP as legal counsel.