Vista Outdoor Board Endorses CSG's Amended Offer, Rejects MNC's Bid As Insufficient

Vista Outdoor Inc. VSTO disclosed an amendment to its merger agreement with Czechoslovak Group a.s., which increases the purchase price payable by CSG for the acquisition of The Kinetic Group business by $100 million to $2.1 billion. 

The amendment also raises the cash consideration for Vista Outdoor stockholders to $21.00 per share of Vista Outdoor common stock, an increase of $3.00 per share.

According to the amended agreement, Vista Outdoor stockholders will receive one share of Revelyst common stock and $21.00 in cash per share of Vista Outdoor shares at the closing of the CSG transaction.

Vista Outdoor and CSG have obtained all necessary regulatory approvals under the merger agreement and are poised to finalize the transaction in July 2024, pending stockholder approval and fulfillment of other standard closing conditions.

Upon completing the CSG transaction, Revelyst will become an independent, publicly traded entity with approximately $250 million in net cash.

Outlook: Vista Outdoor reaffirms its guidance to double standalone Revelyst EBITDA by fiscal year 2025, with plans for over $100 million in ongoing cost savings by fiscal year 2027 and sustained mid-teens EBITDA margins in the long term.

Last month, MNC Capital Partners announced it had increased its all-cash offer to acquire Vista Outdoor to $42.00 per share, or approximately $3.2 billion, representing over 40% premium to the last closing price prior to MNC’s initial offer.

The Vista Outdoor Board has unanimously dismissed MNC’s final offer as inadequate and opportunistic, especially in its undervaluation of Revelyst.

Related: Vista Outdoor Surges As MNC Capital Ups The Ante With Sweetened Bid: Details

According to Benzinga Pro, VSTO stock has gained over 33% in the last twelve months. Investors can gain exposure to the stock via Pacer US Small Cap Cash Cows 100 ETF CALF and VictoryShares Small Cap Free Cash Flow ETF SFLO.

Price Action: VSTO shares closed lower by 0.99% at $37.03 on Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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