Vista Outdoor Rejects $3B Offer From MNC Again, Weighs New Suitor

Vista Outdoor Inc. (NYSE: VSTO) continues to shuffle its widening deck of buyout suitors seeking to break up its agreement with Czechoslovak Group (CSG).

The Anoka-based manufacturer of Federal ammunition and outdoor consumer brands not only shot down MNC Capital Partners’ latest buyout offer on Monday, but revealed another U.S.-based private investment firm has made a play to consider.

Despite admitting Vista was open to considering MNC’s pursuit if the Texas company increased its $37.50-per-share bid, MNC’s third proposal of $39.50 last Thursday apparently didn’t cut it.

"Due to Vista’s significant cash generation and debt paydown during the last quarter, MNC’s $39.50 offer represents virtually the same $3 billion enterprise value for Vista as the $37.50 offer," Vista said.

MNC’s offer included both halves of the company, unlike CSG’s agreement to only buy the ammunition division, The Kinetic Group. Vista said MNC’s latest bid still undervalues the company as it claims once it offloads Kinetic, its other half Revelyst (planned to be headquartered in New England) would be able to unlock a potential of $24 to $35 per share on its own. Vista said a more accurate valuation would range between $46 to $57 in share price for the entire company. In 2023, Vista brought in $2.79 billion in revenue as Minnesota's 23rd-largest public company by revenue, according to Business Journal research. Last Thursday, Vista shares closed at $35.52.

While Vista seems dead set on splitting into two companies, Kinetic’s future with CSG might still be in the wind. Vista said Monday that an unnamed U.S.-based private investment firm has offered to buy the ammunitions division for a little over $2 billion in cash. The new deal would also pay a $47.75 million break fee to CSG. CSG last month threw in another $50 million, offering Vista total of $1.96 billion. Vista’s board of directors plans to review the new offer for a shareholder vote between June 14 and July 2.

SOURCE: MINNEAPOLIS/ ST. PAUL BUSINESS JOURNALS