by Vista Outdoor has recently received an enhanced buyout bid from MNC Capital Partners, L.P. The new bid is offering $37.50 per share for the entire company.
From their news release:
MNC’s $37.50 per share proposal values Revelyst at $1.1 billion, a 93% premium to Vista’s own $570 million implied Revelyst standalone value from its Investor Presentation dated February 1, 2024.
A transaction with MNC would not be subject to a financing contingency and would not be subject to CFIUS review. MNC has provided the details of its financing to Vista, as well as all other information that Vista requested in its March 4, 2024 letter.
Vista Outdoor has a pre-existing agreement to sell The Kinetic Group or its sporting products component to the Czechoslovak Group (CSG) for $1.9 billion. It has planned to keep the remaining outdoor products component known as Revelyst as a stand-alone company. CSG owns a number of other ammunition companies including Fiochi which has a plant in Ozark, Missouri.
Vista Outdoor had rejected an earlier offer made in February from MNC Capital saying that they were staying with the planned sale to CSG as well as their plans to run Revelyst as a stand-alone company.
With respect to the new enhanced offer, Vista Outdoor released this statement:
Vista Outdoor’s Board has not made any determination with respect to the Revised MNC Indication within the framework contemplated by the existing merger agreement with Czechoslovak Group a.s. (“CSG”), which remains in effect, nor has it changed its recommendation in support of the acquisition of its Sporting Products business by CSG.
Vista Outdoor’s Board of Directors is carefully reviewing the Revised MNC Indication, in accordance with its fiduciary duties and its obligations under the existing merger agreement with CSG, in consultation with its financial and legal advisors. Vista Outdoor’s Board of Directors remains committed to acting in the best interests of Vista Outdoor stockholders.
In related news, Colt CZ announced that it had sold all of its holdings of Vista Outdoor stock after their bid to purchase the entire company was rejected. They plan to focus on their pending purchase of ammunition maker Sellier & Bellot.
Vista Outdoor (VSTO) stock closed today at $32.83 or a little less than $5 less per share than the offer from MNC Capital Partners. I should note that I do not currently own any shares of Vista Outdoor.
