Czech Group Plans to Acquire Federal, CCI, Remington Ammo, Speer, HEVI-Shot from Vista Outdoor
Big news for the shooting world — Vista Outdoor (NYSE:VSTO) is planning on selling its outdoor sporting products business to Czechoslovak Group A.S. (“CSG”) for $1.91 billion. This will involve transfer of some of the biggest names in the shooting/reloading world including: Federal, CCI, Remington Ammo, Speer, and Hevi-Shot. The sale and take-over is expected to be completed in 2024. We believe Alliant Powder will also be sold but that was not mentioned in the news release.
This represents a big change for the United States. Soon America’s largest commercial powder and ammunition manufacturer will be controlled by a European enterprise. CSG had previously acquired Fiocchi in 2022, and soon it will hold a very large segment of the total global ammunition market with the $1.91 billion deal to take over Vista Outdoor’s ammunition enterprises. READ Official Transaction Report.
Vista Outdoor’s current Sporting Products CEO Jason Vanderbrink will continue to lead the Sporting Products business and the U.S. headquarters will remain in Anoka, Minnesota. Vanderbrink stated: “We are confident that CSG is a great home for our leading ammunition brands. The company is fully committed to our iconic American brands and expanding our legacy of U.S. manufacturing, support for military and law enforcement customers, and investments in conservation and our hunting and shooting heritage.”
We are told that the approximately 4,000 Vista Outdoor employees now employed at four American factories will continue to work at those facilities to produce CCI, Federal, HEVI-Shot, Remington, and Speer products. According to SGB Media: “To effect the transaction, Vista Outdoor will separate its Outdoor Products business from its Sporting Products business, and CSG will merge one of its subsidiaries with Vista Outdoor (holding only the Sporting Products business), with current public stockholders of Vista Outdoor receiving shares of Outdoor Products … and approximately $750 million in cash in the aggregate. The transaction will be treated as a taxable sale of a stockholder’s Vista Outdoor shares for the Outdoor Products shares and cash consideration they receive in the merger, allowing stockholders to recover tax basis and recognize built-in gain and loss in their Vista Outdoor shares.”
David Štěpán, Member of the CSG Board and Investment Director for CSG International Projects, stated: “Vista Outdoor’s Sporting Products business is vertically integrated, has excellent financial results and is well invested. Thanks to this acquisition, CSG will become one of the most important ammunition manufacturers in the world with a comprehensive portfolio across all calibers.”
According to the Business Wire: “The proposed transaction would be CSG’s largest acquisition to date after a long series of smaller acquisitions focused on the European market, including the acquisition of Fiocchi Munizioni in 2022. It also represents the largest acquisition in the history of the Czech defense industry. The transaction is expected to close in calendar year 2024, subject to shareholder approval, receipt of necessary regulatory approvals and other customary closing conditions. Upon closing, Sporting Products will become a wholly owned subsidiary of CSG, operating as a private company. Jason Vanderbrink will remain CEO of the Sporting Products business and the U.S. headquarters will remain in Anoka, Minnesota.”
About Czechoslovak Group
Czechoslovak Group (CSG) is an international industrial technology holding company building on the tradition of the Czech and Slovak industry, owned by Michal Strnad. CSG supports the development of Czech and Slovak companies engaged in defense and civil industrial production and trade. More than 10,000 people are employed by CSG companies and affiliates. In 2022, the holding’s consolidated revenues reached 25 billion CZK. CSG operates across five strategic business segments covering aerospace, ammunition, defense, mobility and business projects.
About Vista Outdoor Inc.
Vista Outdoor (NYSE: VSTO) is the parent company of more than three dozen renowned brands that design, manufacture and market sporting and outdoor products. Brands include Bushnell, CamelBak, Bushnell Golf, Foresight Sports, Fox Racing, Bell Helmets, Camp Chef, Giro, Simms Fishing, QuietKat, Stone Glacier, Federal Ammunition, Remington Ammunition and more. Our reporting segments, Outdoor Products and Sporting Products, provide consumers with a wide range of performance-driven, high-quality and innovative outdoor and sporting products. For more information, visit www.VistaOutdoor.com.
