by Vista Outdoor had been planning to spin off their Sporting Products group as an independent business. The Sporting Products group included Federal, Remington, CCI, Speer, Alliant Powder, Hevi-Shot, and Estate Cartridges. They had adopted the name The Kinetic Group for the spun-off company. The spin off was to happen in the fourth quarter of this year.
That was announced at the beginning of September. Between then and this morning, things changed. It was announced this morning that Vista Outdoor would sell the Sporting Products group aka The Kinetic Group to Czechoslovak Group for $1.91 billion dollars in an all cash transaction. Czechoslovak Group (CSG) is a a Czech-based holding company with over 30 companies and 10,000 employees worldwide.
CSG has a number of divisions including CSG Aerospace, CSG Defence, CSG Mobility which makes Tatra trucks, and CSG Ammo. This last division includes ammo companies Fiocchi, Italy-based Baschieri & Pellagri, and UK-based Lyalvale Express. Fiocchi has plants in Italy, the UK, and in Ozark, Missouri which is just outside of Springfield.
Jason Vanderbrink will remain as CEO of the Sporting Products business under CSG and it will remain headquartered in Anoka, Minnesota. The leadership team of this business will include “Al Kerfeld, CFO; Jeff Ehrich, General Counsel and Corporate Secretary; and Mark Kowalski, Controller and Chief Accounting Officer.”. The current CFO of Vista Outdoor will remain with Vista which is being renamed Revelyst.
Gary McArthur, interim CEO of Vista Outdoor, noted that the previous plans to spin off the Sporting Products business allowed them to pivot easily to making it a sale rather than a spin-off. He added that he thought a sale would provide a better way to maximize value for shareholders.
Jason Vanderbrink added:
“We are confident that CSG is a great home for our leading ammunition brands,” said Jason Vanderbrink, CEO of Sporting Products. “The company is fully committed to our iconic American brands and expanding our legacy of U.S. manufacturing, support for military and law enforcement customers, and investments in conservation and our hunting and shooting heritage. We are excited to work closely with the CSG team as we enter this next phase and position our brands for long-term success.”
Michal Strnad, CEO and 100% owner of CSG, said he was looking forward to partnering with Vanderbrink and his leadership team. He went on to add that he and CSG were “committed to expanding their legacy of U.S. manufacturing and providing resources to accelerate their growth.”
An investor call concerning the sale was held at 9am EDT this morning. It was recorded and you can listen to it here. You will need to register your name and email. A PDF of all the slides is here.
