Vista Outdoor bid fattened; Overseas investment approval granted

(Source: Federal Premium/Facebook)

Shooting equipment retailer Vista Outdoor has received clearance from the Committee on Foreign Investment in the US (CFIUS) for the proposed sale of its The Kinetic Group business to Czechoslovak Group (CSG).

The acquisition will now come with a price of $2 billion, after CSG raised the transaction value from the originally proposed $1.91 billion.

The Kinetic Group’s brand portfolio includes Alliant Powder, CCI, Estate Cartridge, Federal Premium, Hevi Shot, Remington, and Speer.

“The CFIUS process involved a thorough review and investigation of the transaction by numerous US government departments and agencies with a range of national security and other mandates,” said Michael Callahan, chairman of the board of directors at Vista Outdoor.

“We believe the end result supports our view that CSG – which has deep expertise in supply chain excellence and ammunition manufacturing and strong support for NATO and allied nations – will be an excellent owner of The Kinetic Group. CSG is fully committed to supporting our American workforce, American hunters and domestic and allied military and law enforcement partners.”

Vista Outdoor’s board recommends the company’s shareholders to vote in favour of the proposed merger.

In March, Vista Outdoor said it received an unsolicited indication of interest from MNC Capital to acquire the shooting sports company for $35 per share.

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