Vista Outdoor Rejects MNC’s Over $3B Takeover Bid

Vista Outdoor Rejects MNCs Over $3B Takeover Bid

Vista Outdoor Inc. announced Monday that it has rejected MNC Capital Partners’ over $3 billion takeover bid, continuing to favor its already-established deal with Czech defense company Czechoslovak Group AS (CSG).

Vista Outdoor Rejects MNC’s Over $3B Takeover Bid : Vista’s Rejection of MNC’s Bid

Despite the $3 billion offer from MNC Capital Partners, Vista Outdoor remains committed to its agreement with Czechoslovak Group AS. Vista confirmed it had received a new $2 billion offer for its sporting products division from an undisclosed U.S.-based private investment firm but highlighted that it still supports the deal with CSG.

Ongoing Bids and Agreements

The months-long bidding saga saw multiple offers, including a $2 billion bid from MNC in February, which was increased to over $3 billion last week. Vista Outdoor, however, continues to back its $1.96 billion agreement with CSG to sell its sporting products division, The Kinetic Group.

Vista Outdoor Rejects MNC’s Over $3B Takeover Bid : Financial Implications and Strategy

Vista stated that the $2 billion offer from the unnamed third party might lead to a superior proposal, but it remains steadfast in its commitment to CSG. If Vista were to accept this competing offer, it would incur a $47.75 million fee for breaking the deal with CSG.

Vista Outdoor Rejects MNC’s Over $3B Takeover Bid : Company Rebranding and Strategy

Vista Outdoor, headquartered in Minnesota, oversees 42 brands including Bushnell, CamelBak, and Remington Ammunition. The company recently rebranded its outdoor business as Revelyst Inc., while its sporting division retained the name The Kinetic Group. In October, Vista announced its intention to sell The Kinetic Group to CSG for $1.91 billion, aligning with its strategy to separate its outdoor and sporting goods businesses.

Board Decision and Future Outlook

The Vista Outdoor board conducted a thorough evaluation of MNC’s latest offer and determined it was not superior to the CSG agreement from a financial standpoint. Vista expressed confidence that it will secure approval from the Committee on Foreign Investment in the United States and meet all closing conditions.

Vista Outdoor Rejects MNC’s Over $3B Takeover Bid : Legal and Financial Representation

Vista Outdoor is represented by Cravath Swaine & Moore LLP, with Morgan Stanley & Co. LLC serving as the sole financial adviser. The company’s independent directors are represented by Gibson Dunn & Crutcher LLP, with Moelis & Co. LLC acting as the sole financial adviser. MNC is represented by Katten Muchin Rosenman LLP, with Stephens Inc. as the financial adviser. Legal counsel for the unnamed third party was not immediately available.