MNC Capital Partners LP announced Wednesday that it has increased its all-cash offer to purchase Vista Outdoor Inc. to $42 per share, valuing the deal at approximately $3.2 billion. This marks the private equity firm’s final bid to acquire the sporting goods manufacturer.
MNC Boosts Offer for Vista Outdoor to $3.2B : Significant Premium on Offer
The revised offer from the Dallas-based private equity firm represents a more than 40% premium compared to Vista Outdoor’s last closing price before MNC’s initial proposal on February 19.
“Given MNC’s belief that its acquisition of Vista is in the best interests of shareholders, employees, and national security, MNC decided to make one final effort for such acquisition,” MNC stated. “MNC said that it cannot see any possible basis or reason to further raise it.”
MNC Boosts Offer for Vista Outdoor to $3.2B : Anticipating a Swift Agreement
MNC Capital Partners expressed optimism that the Vista Outdoor board will act quickly to finalize a merger agreement based on the new terms. The firm indicated that a definitive agreement could be signed within days.
Previous Rejections and Competing Offers
Earlier this month, Vista Outdoor rejected a previous revised bid from MNC, which exceeded $3 billion. The Minnesota-based company continues to explore its options to maximize value from potential suitors.
Czechoslovak Group’s Competing Proposal
On Monday, Czechoslovak Group, a defense-focused conglomerate, increased its offer to acquire specific Vista Outdoor divisions, including ammunition brands, to $2 billion. This follows an initial bid of $1.91 billion in October.
MNC Boosts Offer for Vista Outdoor to $3.2B : Regulatory Approval and Opposition
Despite some opposition from Republican lawmakers, including Sens. John Kennedy of Louisiana and J.D. Vance of Ohio, who raised concerns about national security risks, Vista Outdoor and the Czech group announced on Tuesday that they had received regulatory approval from the Committee on Foreign Investment in the United States (CFIUS) to proceed with the deal.
Conclusion
MNC Capital Partners’ $3.2 billion offer for Vista Outdoor underscores its commitment to acquiring the company. With regulatory hurdles cleared for competing bids and MNC’s substantial premium offer on the table, the next steps for Vista Outdoor will be closely watched by stakeholders.
