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Vista Outdoor agrees to sell ammunition business in $1.91 billion deal

Published October 16, 2023

(BRAIN) — Vista Outdoor, which is planning on spinning off its outdoor sports business unit into a separate company this year, will sell off its shooting sports businesses first in a $1.91 billion deal with Czechoslovak Group a.s. ("CSG"). CSG is acquiring four factories and the consumer brands CCI, Federal, HEVI-Shot, Remington and Speer.

CSG is described as "a leading industrial technology holding company, operating within five strategic business segments, including defense, aerospace, ammunition, mobility and business." It is 100% owned by Czech billionaire Michal Strnad.

The Outdoor Products business unit, containing the bike-related brands Giro, Bell, QuietKat, Fox Racing, CamelBak and others, will still spin off as a standalone publicly traded business after the sale of the other business to CSG is completed this year. The Outdoor Products business is being renamed Revelyst. It will be headquartered in Bozeman, Montana, and trade on the NYSE under the "GEAR" symbol. 

The transaction values the Sporting Products business at an enterprise value of $1.91 billion. In the expected transaction, Vista Outdoor will separate its Outdoor Products business from its Sporting Products business, and CSG will merge one of its subsidiaries with Vista Outdoor, with current public stockholders of Vista Outdoor receiving shares of Outdoor Products (now Revelyst) and approximately $750 million in cash in the aggregate. 

The company also gave a preview of its next quarterly financial report, which will be announced in full Nov. 2. It said its quarterly revenues will be down from the same period last year, to between $325 million to $330 million. It said the decline "was driven by decreased buying across all business units as channel partners continue to be cautious with purchasing due to inventory levels and as consumers are pressured by high-interest rates and other short-term factors, partially offset by inorganic sales contribution."




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