ANOKA, Minn. - Vista Outdoor Inc . (NYSE: NYSE:VSTO) announced that its stockholders have given the green light to the sale of The Kinetic Group to Czechoslovak Group a.s. (CSG). The approval was granted at a special meeting where approximately 97.89% of the votes cast were in favor, representing about 82.57% of all outstanding shares.
The sale, known as the CSG Transaction (JO:TCPJ), is set to close on November 27, 2024. Vista Outdoor stockholders will receive $25.75 in cash and one share of Revelyst common stock per share of Vista Outdoor common stock they own. Revelyst will commence trading on the New York Stock Exchange under the ticker "GEAR" following the closure of the transaction.
Michael Callahan, Chairman of the Vista Outdoor Board of Directors, expressed satisfaction with the stockholders' support, which he believes will maximize value for shareholders and provide significant opportunities for employees and the company's leading ammunition brands.
Furthermore, Strategic Value Partners, LLC (SVP) is expected to acquire Revelyst in an all-cash transaction estimated at $1.125 billion, subject to a net cash adjustment. This deal, referred to as the SVP Transaction, is projected to close by January 2025. Revelyst stockholders are anticipated to receive roughly $19.25 in cash per share of Revelyst common stock at the closing of the SVP Transaction.
Vista Outdoor is supported by Morgan Stanley (NYSE:MS) & Co. LLC as the sole financial adviser, with Cravath, Swaine & Moore LLP serving as legal adviser. Moelis (NYSE:MC) & Company LLC and Gibson, Dunn & Crutcher LLP are advising the independent directors of Vista Outdoor.
Vista Outdoor is a parent company to over three dozen brands in the outdoor and sporting products industry, including Federal Ammunition and Remington Ammunition. The company's segments, Outdoor Products and Sporting Products, offer a variety of performance-driven and high-quality products.
This news is based on a press release statement and the final voting results will be disclosed in a Form 8-K filed with the U.S. Securities and Exchange Commission.
In other recent news, Vista Outdoor Inc. has confirmed agreements to sell its business in two separate transactions totaling $3.35 billion. The company plans to sell its sporting goods division, Revelyst, to Strategic Value Partners (SVP) for $1.1 billion, and its ammunition unit, Kinetic, to Czechoslovak Group (CSG) for $2.2 billion. The combined value of these deals sets the price of Vista at $45 per share, surpassing a competing offer from MNC Capital at $43 per share.
The transactions involving Revelyst and Kinetic are part of Vista Outdoor's strategic efforts to optimize its portfolio and maximize shareholder returns. The closing of these deals will be a key milestone for Vista Outdoor as it continues to navigate the dynamic outdoor products market.
In financial performance, Vista Outdoor reported a 7.1% decrease in total sales to $644.2 million and a 6.5% decline in earnings per share to $1.01. Despite these results, Revelyst is expected to double its Adjusted EBITDA sequentially for the quarter and the year.
In analyst opinions, Roth/MKM has downgraded Vista Outdoor's stock from Buy to Neutral. Meanwhile, Gates Capital Management, a significant shareholder, has urged Vista to pursue an all-cash sale of the entire company. These are the recent developments in Vista Outdoor Inc.'s operations.
InvestingPro Insights
As Vista Outdoor Inc. (NYSE: VSTO) moves forward with its strategic transactions, InvestingPro data provides additional context to the company's financial position and market performance. The company's market capitalization stands at $2.6 billion, reflecting its significant presence in the outdoor and sporting products industry.
Despite the upcoming changes, Vista Outdoor has shown strong market performance. InvestingPro data reveals that the company's stock has delivered a robust 65.99% total return over the past year, with a 27.28% return in just the last six months. This aligns with an InvestingPro Tip indicating a "large price uptick over the last six months," suggesting investor confidence in the company's strategic decisions.
Another relevant InvestingPro Tip notes that "analysts predict the company will be profitable this year." This projection could be particularly significant as Vista Outdoor transitions through its planned transactions. The company's P/E Ratio (Adjusted) for the last twelve months as of Q2 2025 is 14.09, which may indicate a reasonable valuation relative to earnings expectations.
It's worth noting that InvestingPro offers 10 additional tips for Vista Outdoor, providing even more comprehensive insights for investors interested in deeper analysis of the company's prospects amidst these transformative events.
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