Vista Outdoor to Sell Ammunition and Sporting Goods Divisions for $3.4 Billion

Vista Outdoor has reached an agreement to sell its two divisions for a total of $3.4 billion. The company will sell Revelyst, its sporting goods business, for approximately $1.13 billion. This deal is contingent on the completion of the sale of its ammunition business, Kinetic Group, for about $2.23 billion.

Details of the Deal

The Minnesota-based Vista Outdoor is set to divest its sporting goods business, Revelyst, for $1.13 billion to Strategic Value Partners, an investment firm. The transaction is expected to be an all-cash deal and is projected to be finalized by January, as per a press release.

The sale of Vista's ammunition business, Kinetic Group, is to be made to Czechoslovak Group, a defense company based in Prague. An amendment to the previous merger agreement has raised the sale price from $2.15 billion to approximately $2.23 billion. The completion of this deal is anticipated by the end of 2024.

Financial Implications

According to the press release, the combined value of the CSG Transaction and the SVP Transaction amounts to $3.35 billion for Vista Outdoor. Shareholders of Vista Outdoor are expected to receive an estimated $45 per share in cash as a result of these transactions.

Reuters was the first to report on these significant deals. Michael Callahan, the chairman of Vista Outdoor's board of directors, expressed the board's commitment to maximizing shareholder value through these strategic sales.

Callahan stated, "Through these agreements with SVP and CSG, we believe we've positioned both Revelyst and Kinetic for continued success under new ownership."

Advisors and Stock Performance

JPMorgan is advising Czechoslovak Group, while Morgan Stanley is providing advisory services to Vista Outdoor on this new deal. Additionally, Moelis & Company is advising Vista's board on the transactions.

Since the beginning of the year, Vista's stock price has seen an increase of approximately 35%. The company, with nearly 6,000 employees worldwide, announced its decision to split into two divisions in 2022.

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By: rrommen@insider.com (Rebecca Rommen)
Title: Vista Outdoor to Sell Ammunition and Sporting Goods Divisions for $3.4 Billion
Sourced From: www.businessinsider.com/vista-outdoor-to-sell-revelyst-kinetic-group-divisions-billions-2024
Published Date: Sat, 05 Oct 2024 10:35:25 +0000