Vista Outdoor Inc. has entered into a nearly $3.4 billion agreement to sell its business, with Cravath Swaine & Moore LLP guiding the company through the two-part deal. The transactions include an amended agreement to sell Vista’s ammunition business, The Kinetic Group, to Czechoslovak Group (CSG) for $2.225 billion and the sale of its sporting goods unit, Revelyst, to Strategic Value Partners (SVP) for $1.125 billion.
Vista Outdoor $3.4B Deal : The Kinetic Group Deal
In an updated agreement, Vista will sell The Kinetic Group to CSG for $2.225 billion, reflecting a $75 million increase from a previous offer made by CSG in July. The deal involves the ammunition business, which has been a significant component of Vista’s portfolio.
Revelyst Sale to SVP
Vista also finalized an agreement to sell its Revelyst sporting goods division to SVP for $1.125 billion in enterprise value. An earlier plan for CSG to invest in Revelyst was abandoned, leading to SVP’s purchase. These two contingent transactions represent a total enterprise value of $3.35 billion for Vista.
Vista Outdoor $3.4B Deal : Stockholder Value
Vista stockholders are set to receive an estimated $45 per share in cash, the company said, marking a substantial return. Vista’s stock price surged by about 10% following the announcement, closing at $43.83 per share on Monday. Both deals are expected to close by January, pending final approvals.
