Vista Outdoor has amended its merger agreement with the Czechoslovak Group (CSG) after CSG increased the base purchase price for the Kinetic Group business to $2bn.
In May 2024 CSG increased the base purchase price for the Kinetic Group business deal by $50m from $1.91bn to $1.96bn.
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The price has now risen by $40m, from $1.96bn.
The amendment also enhances the cash consideration for Vista Outdoor stockholders, upping the per-share amount from $16.00 to $18.00.
This 12.5% increase translates to a more substantial return for investors at the close of the CSG transaction.
Stockholders of Vista Outdoor are set to receive one share of Revelyst common stock and $18.00 in cash for each share of common stock upon the deal’s completion.
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By GlobalDataThe company’s cash generation has enabled an additional return of $77m to its stockholders.
The additional cash return complements the increased purchase price offered by CSG, ensuring that stockholders benefit directly from the transaction.
Vista Outdoor’s board of directors continues to recommend the CSG transaction, confident in its ability to maximise shareholder value.
The acquisition is poised to unlock the long-term potential of Revelyst as an independent public entity.
CSG’s commitment to US manufacturing, its workforce and its expertise in supply chain management will bolster Vista Outdoor’s ammunition brands.
CSG’s investment is anticipated to benefit the local communities, its 4,000 US workers and the company’s military and law enforcement partners.
The transaction is expected to complete in the second half of 2024. It is currently pending Vista Outdoor’s stockholder approval, clearance from the Committee on Foreign Investment in the United States and other standard conditions.
Morgan Stanley & Co and Cravath, Swaine & Moore are respectively serving as financial and legal advisers to Vista Outdoor.
Moelis & Company and Gibson, Dunn & Crutcher are advising the independent directors of Vista Outdoor.
