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.

Michael Callahan, chair of Vista’s board, stated, “The board has worked tirelessly to deliver maximum value to its stockholders, and we are pleased to have reached this agreement with SVP and CSG."

Legal Representation

The deal involved multiple legal teams. Cravath Swaine & Moore LLP advised Vista, with a team led by Aaron M. Gruber, Craig F. Arcella, Bethany A. Pfalzgraf, J. Leonard Teti II, and Eric W. Hilfers. Paul Weiss Rifkind Wharton & Garrison LLP represented SVP, with Clifford Chance LLP advising CSG. Gibson Dunn & Crutcher LLP served as advisers to a group of Vista independent directors.

The deal represents a defeat for MNC Capital Partners, which had previously attempted to purchase both of Vista’s units but had its offer rejected.