Vista Outdoor Inc. (NYSE: VSTO) announced on that it has entered into a definitive agreement to sell Revelyst to funds managed by Strategic Value Partners, LLC (SVP) in an all-cash transaction valued at $1.125 billion.
Concurrently, Vista Outdoor has amended its merger agreement with Czechoslovak Group a.s. (CSG) to acquire The Kinetic Group for an increased purchase price of $2.225 billion.
The SVP Transaction is contingent upon the completion of the CSG Transaction.
Combined, these transactions represent an enterprise value of $3.35 billion for Vista Outdoor and are expected to provide approximately $45 per share in cash to the company’s stockholders.
The SVP Transaction involves SVP paying Revelyst stockholders an aggregate of $1.125 billion, equating to an estimated $19.25 in cash per share of Revelyst common stock, based on current management estimates of Revelyst’s net cash at closing.
Meanwhile, under the CSG Transaction, CSG will pay Vista Outdoor $2.225 billion, subject to purchase price adjustments, and Vista stockholders will receive $25.75 in cash per Vista Outdoor share along with one share of Revelyst common stock for each Vista Outdoor share held.
These transactions aim to unlock maximum value for Vista Outdoor’s stockholders by divesting Revelyst and strengthening the company’s portfolio with the acquisition of The Kinetic Group.
The Kinetic Group is recognized for its high-quality, innovative products in the ammunition sector, and the acquisition is expected to enhance Vista Outdoor’s market position and growth prospects.
The agreements have been unanimously approved by Vista Outdoor’s Board of Directors and are expected to close by January 2025, pending the completion of the CSG Transaction and the receipt of necessary regulatory approvals.
The termination date for the CSG merger agreement has been extended to December 11, 2024, to accommodate these developments.
Upon closing the CSG Transaction, Vista Outdoor and CSG will proceed with the SVP Transaction. Additionally, amendments to the existing separation agreement ensure that CSG will no longer invest in Revelyst post-transaction.
Vista Outdoor has adjourned its special meeting of stockholders, initially scheduled for October 9, 2024, in light of these significant transactions. Further details will be filed with the U.S. Securities and Exchange Commission as the transactions progress.
PEVCJournal.com