Vista Outdoor says CSG has raised its bid for its sports business to $2 billion

By Ciara Linnane

CSG has also raised the cash consideration by $2 a share to $18

Vista Outdoor Inc. said Monday the Czechoslovak Group A.S. has increased its bid for its Kinetic Group business by $40 million to $2 billion and raised the cash consideration by $2 a share to $18.

The move means Vista Outdoor (VSTO) shareholders would receive $18 in cash and one share of Revelyst common stock for each share owned, the company said in a statement.

The move is the latest in a wave of M&A offerings aimed at Vista, a maker of outdoor products and ammunition, for all or parts of its business.

Vista, parent to brands including CamelBak and Bushnell, had agreed in May to a deal with CSG for Kinetic, which houses its sporting-goods business, then valued at $1.96 billion. Then on June 10, the company said an unnamed bidder it described as a private investment company had offered $2.01 billion for Kinetic.

The company postponed a special shareholder meeting to vote on the CSG bid to allow it time to discuss the competing offer.

At the same time, Vista rejected an offer from MNC Capital for all of its business that was valued at $39.50 a share, after MNC raised it from an initial $35 a share.

On Monday, the company urged shareholders to back the CSG deal, and said in light of continued excess cash generation, it would now return an additional roughly $77 million to shareholders as part of the cash consideration of the CSG deal.

"This return of excess cash to Vista Outdoor stockholders is in addition to the increase in the purchase price payable by CSG that will also be delivered to stockholders," the company said in a statement.

CSG "brings a strong commitment to U.S. manufacturing and our American workforce and deep expertise in supply chain excellence, ammunition manufacturing and support for NATO and allied nations," said the statement.

If shareholders approve, the deal is expected to close this year. Vista is confident it will win the backing of the Committee on Foreign Investment in the U.S., a regulatory body that reviews cross-border transactions.

The stock was up 2.5% premarket and has gained 15.4% in the year to date, while the S&P 500 SPX has gained 14.6%.

-Ciara Linnane

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

06-24-24 0818ET

Copyright (c) 2024 Dow Jones & Company, Inc.