In a strategic maneuver, Vista Outdoors Inc. has pressed investment firm MNC Capital to heighten its $3 billion acquisition proposal. This request comes as Vista Outdoors continues to evaluate MNC’s proposals against an existing merger agreement with Czechoslovak Group aimed at divesting its ammunition brands.
Vista Outdoors MNC Capital Merger Buyout: A Push for Higher Valuation
On Monday, Vista Outdoors released a statement indicating it would grant MNC access to certain nonpublic data, enabling the Dallas-based firm to potentially augment its offer price. This development followed MNC’s revised buyout bid of approximately $3 billion, under advice from Katten Muchin Rosenman LLP, after an earlier offer was declined by Vista.
Currently, Vista is committedto a deal to offload part of its business, including select ammunition-focused portfolio companies, to Czech defense firm Czechoslovak Group for an estimated $1.9 billion. This transaction, announced last October, is integral to Vista Outdoors’ strategy to segregate its ammunition operations from its non-firearm units.
Evaluating Economic Proposals
Michael Callahan, chair of Vista’s board, highlighted that despite MNC’s improved proposal, it still underestimates the value of Vista’s newly rebranded Revelyst unit. This division encompasses performance gear brands such as Foresight Sports, Bushnell Golf, and CamelBak. Nevertheless, the proposal allows for continued engagement under the terms agreed with Czechoslovak Group, leading to the board’s decision to facilitate further negotiations by providing MNC with non-public information.
