ANOKA, Minn., October 16, 2023 – Vista Outdoor Inc. has agreed to sell its Sporting Products segment to Czechoslovak Group (CSG) for $1.91 billion. The all-cash deal is set to be finalized in 2024, pending necessary approvals.
This sale is a move towards Vista Outdoor’s May 5, 2022, plan to separate its businesses. Outdoor Products, now named Revelyst, will become a standalone public company upon the deal’s close.
Gary McArthur, Vista’s interim CEO, commented.
“This is an important strategic step for our company in creating value through separating our Outdoor Products and Sporting Products segments,” said McArthur in a press release.
“The previously announced plan to separate our businesses has positioned us to execute seamlessly on this transaction, which we believe is the best path to maximize value for our stockholders, while better positioning Sporting Products and Outdoor Products for future success,” he added.
Jason Vanderbrink, CEO of Sporting Products, believes CSG is the right place for their leading ammunition brands. CSG’s CEO, Michal Strnad, expressed enthusiasm about building on the company’s legacy.
The Sporting Products business is valued at $1.91 billion, and the transaction will involve Vista Outdoor splitting its Outdoor Products from Sporting Products. Stockholders of Vista Outdoor will receive shares of Revelyst and about $750 million in cash in total.
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Upon the deal’s closure, Vanderbrink will continue as CEO of Sporting Products, and its US headquarters will stay in Anoka, Minnesota. The business boasts brands like CCI, Federal, HEVI-Shot, Remington and Speer.
After the sale, Revelyst will trade on the New York Stock Exchange under the ticker “GEAR.” Brands under Revelyst include Fox, Bell, and Bushnell, among others.
Leadership changes include Andy Keegan joining Revelyst as CFO and Al Kerfeld being named CFO of Sporting Products.
Vista Outdoor released a preview of its Q2 2024 results and lowered its full-year FY24 guidance, citing challenging economic conditions.
The company will hold a conference call at 9 a.m. ET today to discuss this sale and its Q2 FY24 preliminary results. The Investor Day, initially scheduled for October 19, 2023, is now postponed.
Morgan Stanley & Co. LLC and Moelis & Company LLC are advising Vista Outdoor, while J.P. Morgan is advising CSG.
Vista Outdoor, a parent company to over 30 brands, offers various outdoor and sporting products. CSG, a leading industrial tech holding company, operates in sectors like defense and aerospace.
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You don’t sell American businesses to foreigners. Ask DuPont and the former employees of their X–ray division, the former employees of the Canton Paper Mill, the former employees of Ecusta Paper Corporation, all in NC.
How can off-shoring the ownership and control of an American ammunition manufacturer be a good thing? Why bother with the 2A if you can just purchase and discontinue it…
This is incorrect. Ammunition brands are staying w Vista, which will be rebranded. The outdoors brands are going to CSG. This includes brands like CamelBak, not ammunition.
Apologies, I retract that. I misread the news from earlier this week. Ammunition brands are indeed going to CSG
Not what I’ve been reading. Every article I have read so far is stating that the ammo brands are all going to CSG. So either all of these articles are wrong, or this post is incorrect.
Wrong.