Feds Approve Sale of Vista Outdoor Brands to Czechoslovak Group
CFIUS Clears Sale of The Kinetic Group to CSG
Vista Outdoor Inc. (NYSE: VSTO) and Czechoslovak Group a.s. (“CSG”) have announced that the Committee on Foreign Investment in the United States (“CFIUS”) has cleared CSG’s proposed acquisition of Vista Outdoor’s The Kinetic Group business. CFIUS has concluded its investigation of the Transaction and has determined that there are no unresolved national security concerns. CFIUS clearance was the final regulatory approval required under the merger agreement with CSG. CFIUS is a U.S. government committee that reviews foreign investment transactions to determine their effect on U.S. national security.
The Shooting Wire reports: “Vista Outdoor Inc. cleared a major hurdle in its plans to sell off its ammunition segment, known as The Kinetic Group, to Czechoslovak Group, or CSG, after the Committee on Foreign Investment in the United States (CFIUS) cleared the proposed acquisition of The Kinetic Group business after the Committee determined ‘there are no unresolved national security concerns’. The closing of the transaction remains subject to receipt of the approval of Vista Outdoor’s stockholders[.] The Vista Board recommends stockholder approval based partly on a $2 billion purchase price, representing a $90 million increase from the original $1.91 billion purchase price.”
Michael Callahan, Chairman of the VSTO Board of Directors stated: “The CFIUS process involved a thorough review and investigation of the Transaction by numerous U.S. Government departments and agencies[.] We believe the end result supports our view that CSG — which has deep expertise in supply chain excellence and ammunition manufacturing and strong support for NATO and allied nations — will be an excellent owner of The Kinetic Group. CSG is fully committed to supporting our American workforce, American hunters, and domestic and allied military and law enforcement partners.”
The closing of the transaction remains subject to the approval of Vista Outdoor’s stockholders and other customary closing conditions. The special meeting of Vista Outdoor stockholders to vote on a proposal to adopt the merger agreement with CSG is scheduled to be held virtually on July 2, 2024, at 9:00 a.m. Central Time.
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 (Revelyst) and Sporting Products (The Kinetic Group), provide consumers with a wide range of performance-driven, high-quality and innovative outdoor and sporting products. For news and information, visit our website at www.vistaoutdoor.com.
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