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Vista Outdoor agrees to mull MNC's $3B bid

Apr 22, 2024

Photo: George Frey/Bloomberg via Getty Images

Vista Outdoor (NYSE: VSTO) said Monday it is engaging with MNC Capital's $3 billion offer to buy the company, and encouraged the investment firm to raise its bid.

Why it matters: It's the first time Vista has said it would consider the offer, having already agreed to a separate, $1.9 billion deal to sell its ammunition business to Czech company CSG.

Zoom in: MNC raised its offer last month to $37.50 per share — up from $35 — or around $3 billion for the entire company.

  • Vista chairman Michael Callahan said on Monday that while the company will engage with MNC, it does not consider the offer superior to its existing agreement with CSG.
  • Callahan said that MNC's offer undervalues the non-ammo side of the business, a division that sells outdoor gear such as CamelBak water sacs known as Revelyst.
  • Because Vista has agreed to engage with MNC and share information, the company said it would delay its special meeting of shareholders to vote on the CSG deal to June 14 from May 16.
  • Vista's stock rose 6% to $34.26 per share in mid-morning trade on Monday.

What they're saying: "Vista Outdoor continues to be confident that it will receive clearance from the Committee on Foreign Investment in the United States ("CFIUS") with respect to the proposed transaction with CSG and that all other closing conditions will be satisfied," the company said.

What we're watching: The U.S. government is reviewing CSG's agreement, a deal facing increasing pushback from politicians and a group of police officers.

  • Further pushback from state and federal agencies could push Vista Outdoors into the hands of MNC, especially if MNC sweetens the offer once more.
  • Vista said in a statement that it's confident it will receive government clearance for the CSG deal and that all other closing conditions will be satisfied.

Editor's note: This story was updated to include Vista's stock move in the morning and its statement on the CSG review.

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