MNC Capital has increased its offer to acquire Vista Outdoor to $3.0 billion

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AK&M 26 March 2024 18:55

The investment company MNC Capital Partners, L.P. has increased its offer to acquire the American Vista Outdoor, Inc. to $3.0 billion. This is reported in the MNC press release. 

MNC's offer at $37.50 per share estimates the value of the Revelyst Outdoor Products division at $1.1 billion (93% higher than Vista's own value of $570 million).

MNC provided Vista with detailed information on the financing details, as well as all the data requested by Vista in a letter dated March 4, 2024, and expects a quick response to the new offer, which is in the best interests of Vista shareholders and employees. 

In early March 2024, Vista Outdoor rejected MNC Capital's takeover offer for $2 billion ($35.0 per share).

From Vista's point of view, MNC Capital's proposal underestimates the real value of the company, in particular the value of the Revelyst Outdoor Products business, which is planned to be separated into an independent division. 

Vista management continues to support the deal with Czechoslovak Group (CSG), as it believes that CSG's offer is more beneficial for the company's shareholders.

Vista Outdoor signed an agreement with Czech industrial and technological holding Czechoslovak Group on October 15, 2023, to sell the Sporting Products division for $1.91 billion. The proposed deal will be CSG's largest acquisition after a series of deals in the European market, including the buyout of Fiocchi Munizioni shares in 2022.

The transaction is expected to be completed in 2024, subject to approval by shareholders and regulatory authorities in the Czech Republic and the United States, as well as compliance with the usual closing conditions.

Upon completion of the transaction, Sporting Products will enter the CSG structure as a subsidiary with the former management and headquarters in Anoka (Minnesota). The deal is aimed at expanding CSG's key business areas, including strengthening strategic industrial relations with the United States.

J.P. Morgan acts as financial advisor, and Clifford Chance LLP acts as legal advisor to CSG. Morgan Stanley & Co. LLC and Cravath, Swaine & Moore LLP represent Vista Outdoor.

Sporting Products is a manufacturer of ammunition in the American commercial market. The company has four factories in the USA and owns leading brands (CCI, Federal, HEVI-Shot, Remington and Speer). The headquarters is located in Anoka, Minnesota.

Vista Outdoor is the parent company of well–known brands for the development and production of goods for sports and outdoor activities (Bushnell, CamelBak, Bushnell Golf, Foresight Sports, Fox Racing). In addition, the company includes a number of American manufacturers of small-caliber ammunition (Federal Ammunition and Remington Ammunition). The shares are listed on the NYSE. The headquarters is located in Anoka, Minnesota.

CSG is a Czech industrial and technological holding company headquartered in Prague. CSG comprises five strategic business segments: Defense, Aerospace, Ammunition, Mobility and manages a portfolio of industrial and commercial companies in the civil and defense sectors. The headquarters is located in Prague (Czech Republic).

MNC Capital is an international investment company. MNC Capital has strong ties with the world's leading financial institutions, private investment companies and government corporations.

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