Vista Outdoor Stock Rises After Backing Offer To Sell Kinetic Group

Shares of Vista Outdoor (VSTO) edged higher Monday after the outdoor products company rejected a private equity firm’s takeover offer, putting its support behind another company’s bid to buy one of its divisions for $2.1 billion.

Vista’s shares were recently up about 0.5% to more than $37 per share. The company rejected last month’s offer from MNC Capital in favor of a sweetened offer from Czechoslovak Group (CSG) that it said is a better value for shareholders than MNC Capital’s $3.2 billion offer and has a clearer path to closing because it already has received the necessary regulatory approvals.

CSG Deal Would Let Vista Retain Outdoor Brands

MNC Capital’s offer was for the entire company, while CSG has offered to acquire the Kinetic Group, Vista’s group of firearm and ammunition brands like Remington. The deal would allow Vista to retain its Revelyst division, which controls outdoor brands like Camelbak backpacks and Bell cycling helmets.

MNC last month raised its bid for the full company to $42 per share, roughly $3.2 billion, days after the Committee on Foreign Investment in the U.S. (CFIUS) cleared Vista’s deal with Prague-based CSG, saying there were “no unresolved national security concerns.”

If the CSG deal goes through, Vista said its Revelyst division would become its own publicly traded company, while the Vista name and Kinetic brands would merge with CSG.

“As a pure-play standalone outdoor company, there is significant opportunity for Revelyst to realize superior value for stockholders when separated from The Kinetic Group, with expanded strategic opportunities and the strengthened ability to attract and retain talent,” the company said Monday.

Vista said it will hold a special shareholder meeting to approve the CSG deal on July 23, and said its board has “unanimously” rejected MNC’s final offer.