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Czechoslovak Group Acquires Vista Outdoor’s Sports Division

Czechoslovak Group (CSG) will purchase Vista Outdoor's sports equipment division for $1.96 billion, pending approval from shareholders and the US Committee on Foreign Investment.

The Czechoslovak Group (CSG), owned by Czech entrepreneur Michal Strnad, will purchase the sports equipment division of the American firm Vista Outdoor's Kinetic Group for $1.96 billion (44.4 billion CZK), the American company announced in a press release. The companies had been negotiating the transaction since last year, and Vista accepted the offer only after CSG increased the offered amount by $50 million on Monday.

Vista Outdoor is among the leading small-caliber ammunition manufacturers in the world, including brands such as Remington, Federal, CCI, and Speer. Some American politicians opposed the plan to sell this division to a Central European firm. In a separate press release, Vista also rejected a competing acquisition offer from MNC Capital.

In the final offer, CSG increased the cash portion payable to Vista shareholders by $3.10 per Vista common share, amounting to $16.00 per share, representing a 24% increase over the previous offer. Vista expects the transaction to be completed this year, pending approval from Vista shareholders and the US Committee on Foreign Investment.

Vista shares closed at $34.90 on the New York Stock Exchange on Friday. Due to a holiday, there was no trading on Monday in the US markets. Before the start of Tuesday's trading, Vista shares were up more than half a percent at $35.10.