Investment firm withdraws $2 billion offer for Vista Outdoor divisions

LEWISTON – Vista Outdoor Inc. reaffirms its recommendation that the company’s shareholders vote in favor of the proposed merger agreement with the Czechoslovakian group. The Czech industrial technology holding company is seeking to acquire the Kinetic Group for $1.96 billion in cash. The Kinetic Group includes the company’s munitions manufacturing facilities in Lewiston.

In October 2023, Vista Outdoor entered into an agreement and merger plan under which Vista Outdoor agreed to sell its sports products business to the Czechoslovakian group for an enterprise value of $1.91 billion as part of ‘an all-cash transaction subject to customary closing conditions.

“Vista Outdoor remains confident that it will obtain clearance from the United States Committee on Foreign Investment regarding the proposed transaction with CSG and that all other closing conditions will be satisfied,” a press release from the company said. business.

A US-based private investment firm had offered to acquire The Kinetic Group for $2,008,500,000 in cash, with no cash or debt. But this offer was withdrawn. “Vista Outdoor understands that the withdrawal was due to pressure from MNC Capital Partners,” the statement said.

Vista Outdoor claims the company learned that MNC was alleging that the investment firm had violated certain contractual agreements with MNC that allegedly restricted the company’s ability to submit a bid for the Kinetic Group.

“While it is regrettable that MNC has apparently caused the alternative party’s expression of interest to be withdrawn, we firmly believe that the completion of the transaction with CSG will be an excellent outcome for our shareholders,” said Michael Callahan , Chairman of the Board of Directors. “CSG will be an excellent owner of The Kinetic Group with a strong commitment to American manufacturing and its American workforce and deep expertise in supply chain excellence, munitions manufacturing and support for NATO and allied countries. We look forward to the successful shareholder vote on July 2 and remain confident that the CSG transaction will receive CFIUS clearance.