Vista Outdoor receives higher offer for ammunition unit in bidding war

Vista Outdoor (VSTO) shares rose on Monday after the manufacturer and marketer of sporting and outdoor goods said it supported an increased offer from Prague-based defense contractor Czechoslovak Group (CSG) for its ammunition division Kinetic Group.

The aim of the move was to fend off an attempt to take over the entire company by the private equity firm MNC Capital Partners.

The company said CSG had increased its offer for the unit, which sells ammunition products under brands such as Remington and Federal, by $50 million to $2.15 billion, and Vista was also offering shareholders an additional $125 million in cash.

Competitive offer for the whole of Vista

Vista said CSG’s latest offer was better than MNC Capital’s $42 per share bid for Vista. MNC Capital said it stands by its proposal. Vista would continue to operate its Revelyst division, which makes Giro and Bell helmets and other goods, as a separate company.

Vista Chairman Michael Callahan wrote that the company was “confident that the transaction with CSG will maximize value for our shareholders and provide shareholders with the opportunity to realize greater value from Revelyst when the company is separated from Kinetic Group.”

Vista postponed a shareholder meeting scheduled for tomorrow until July 30. Callahan said the CSG transaction could be “closed in early August.” The company also reiterated its fiscal 2025 outlook for revenue in the range of $2.67 billion to $2.78 billion and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $410 million to $490 million.

Vista Outdoor shares rose 1.4% to $38.10 at 11:25 a.m. ET Monday and are up nearly 30% this year.