Sept 13 (Askume) – Vista Outdoor (VSTO.N) said on Friday that Czechoslovak Group (CSG) has agreed to acquire a 7.5% stake in its sports equipment unit for $150 million as part of a larger acquisition of the company’s weapons business. part of the transaction.
The Prague-based defense company plans to acquire Vista’s outdoor sports equipment business Revelyst, valuing the unit at $2 billion. Vista still supports CSG’s bid, although it is fighting takeover bids from private equity firm MNC Capital , which it has repeatedly rejected.
Upon completion of the revised CSG transaction, Vista shareholders will receive $28 in cash and one share of Revelst common stock for each Vista share they own. This increases the cash portion of the Kinetic Group deal by $4 per share.
The revised deal values Kinetic Group at $2.15 billion.
Following the completion of the CSG transaction, Revelist plans to implement a $50 million stock repurchase program.
Vista previously put its sports equipment business up for sale in July after agreeing to sell its ammunition division to CSG.
CSG Group has repeatedly raised its bid for Kinetic Energy Group since making its first offer in October.
MNC joined the race in March, and earlier this month it raised its bid for Vista to $43 a share, valuing the company at more than $3.2 billion. MNC said at the time that it made the offer despite significant market headwinds to consumer spending and Vista’s weak quarterly results.
Vista on Friday said MNC’s latest offer is “significantly undervalued” compared to CSG’s offer to Kinetic Group and Revlist. MNC Capital declined to comment.
The months-long saga of acquisitions of Federal Ammunition Corp. and Remington Ammunition Co.’s parent company has unfolded since the Russia-Ukraine conflict escalated in 2022 as demand for military supplies has increased.
Vista’s extraordinary shareholder meeting to vote on the deal proposal is scheduled for September 27 after being postponed twice.
