Vista Outdoors strikes a new, and maybe final, deal
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Illustration: Maura Losch/Axios
The year's twistiest takeover saga appears to be over, as Vista Outdoors has agreed to a new deal that it believes will secure shareholder approval and keep a hostile buyer at bay.
Why it matters: Vista is one of America's largest ammunition makers, including to both the military and law enforcement markets.
- Its future is of strategic importance as foreign wars have depleted reserves.
Driving the news: Minnesota-based Vista on Friday announced an agreement to sell its Revelyst consumer business, which includes CamelBak water bottles, to Strategic Value Partners for $1.1 billion.
- Vista also said an agreement to sell its Kinetic Group ammunition business to Czech defense contractor CSG had been sweetened by $75 million to $2.2 billion. CGS, which already received CFIUS approval for its purchase, also will discard its prior agreement to take a 7.5% stake in Revelyst.
- It works out to around $3.35 billion for all of Vista, or $45 per share. That's $2 per share more than the most recent offer from MNC Capital, a Dallas-based family office whose team includes a former Vista board member.
Zoom in: MNC has engaged in a rapid-response PR strategy for nearly a year, but has been declined comment since the revised deals were disclosed.
- One reason may be that Strategic Value Partners was the unidentified private equity firm that had partnered with MNC on its original bids, sources tell Axios.
- Vista issued a press release on Sept. 15 that the firm (albeit still anonymous) had entered into independent talks to buy Revelyst.
- Maybe MNC can find another deep pocket. But it would need to do so quickly, as the current offer is almost certain to entice shareholders who had previously been reticent to sell the ammo and keep the water bottles. The smart money is on MNC being out of the process for good.
Catch up quick: Vista has had other suitors over the past year — including private equity firm JDH Capital and firearms maker Colt CZ Group — while MNC has repeatedly upped its offer.
The bottom line: Vista is one of America's largest ammunition makers, including to both the military and law enforcement markets. Its future, even if controlled by a foreign entity, is of strategic importance as foreign wars have depleted reserves.
