Vista Outdoor has agreed to sell its Revelyst division to funds managed by Strategic Value Partners (SVP) for $1.125 billion.
In connection with this deal, the company has also entered into an amended merger agreement with Czechoslovak Group (CSG) to sell its The Kinetic Group business for $2.225 billion. In its most recent offer, CSG agreed to acquire Kinetic for $2.15 billion.
The SVP transaction is subject to the completion of the CSG transaction. The two deals represent an enterprise value of $3.35 billion for Vista Outdoor.
“The board engaged in a thorough process to identify the best avenues to unlock value – and through these two separate, but contingent, transactions with SVP and CSG, we have identified a path that reflects the true strength and potential of both Revelyst and The Kinetic Group,” said Michael Callahan, chairman of Vista Outdoor.
The SVP transaction is expected to close by January, subject to regulatory approvals and other customary closing conditions. The CSG transaction has received regulatory approvals and is expected to close by the end of this year.
Revelyst is Vista’s outdoor products segment with a portfolio of brands including Fox, Bell, Giro, CamelBak, Camp Chef, Bushnell, Simms Fishing, Foresight Sports and Bushnell Golf. Meanwhile, The Kinetic Group manages shooting equipment brands such as CCI, Federal, Hevi Shot and Remington.
For the first quarter of this fiscal year, Vista’s sales declined 7.1 per cent to $644 million amid continued market headwinds. However, the company management expects to report quarter-over-quarter improvement throughout the rest of the year.
