October 17th 2023Big news in the shooting world – Vista Outdoor (NYSE VSTO) plans to sell its outdoor sporting products business, which is worth $1.91 billion, to Czechoslovak Group A.S. This will include the transfer of some of shooting/reloading’s biggest names, including Federal, CCI Ammo and Speer. The sale and takeover are expected to be completed by 2024. The news release did not mention Alliant Powder, but we believe it will be sold. This is a major change for the United States. Soon, America’s largest commercial ammunition and powder manufacturer will be controlled from Europe. CSG acquired Fiocchi 2022 and will soon control a large portion of the global ammunition market after the $1.91 billion acquisition of Vista Outdoor’s ammunition businesses. READ Official Transaction report.Vista Outdoor’s current Sporting Products Chief Executive Officer Jason Vanderbrink, will continue to lead Sporting Products and the U.S. Headquarters will remain in Anoka Minnesota. Vanderbrink said: “We’re confident that CSG will be a great home to our leading ammunition brands. The company is committed to its iconic American brands, expanding its legacy of U.S. Manufacturing, support for military customers and law enforcement, and investing in conservation and our hunting heritage. We are told that approximately 4,000 Vista Outdoor workers currently employed at four American facilities will continue to work there to produce CCI products, Federal products, HEVI Shot products, Remington and Speer. SGB Media reports: “To effect this transaction, Vista Outdoor will split its Outdoor Products from its Sporting Products businesses, and CSG (holding only Sporting Products) will merge one of their subsidiaries with Vista Outdoor. Current public stockholders of Vista Outdoor will receive shares of Outdoor Products… and approximately $750,000,000 in cash in aggregate. The transaction will be treated by the IRS as a taxable transfer of Vista Outdoor shares in exchange for Outdoor Products shares, and cash consideration, allowing stockholders the opportunity to recover their tax basis, and recognize any built-in gains or losses in their Vista Outdoor share. David Stepan, CSG Board Member and Investment Director of CSG International Projects stated that Vista Outdoor’s Sporting Products is vertically integrated and has excellent financial results. CSG will be one of the largest ammunition manufacturers in the World with a comprehensive range of ammunition across all calibers. According to Business Wire, “The proposed transaction is CSG’s biggest acquisition to date, after a series of smaller acquisitions focusing on the European market including the acquisition by Fiocchi Munizioni, in 2022.” This is also the largest acquisition ever made in the Czech defense industry. The transaction is expected close in 2024, subjected to shareholder approval and receipt of regulatory approvals, as well as other closing conditions. Sporting Products will operate as a privately owned company after the transaction closes. Jason Vanderbrink, the CEO of Sporting Products, will remain at the helm. The U.S. headquarters in Anoka will remain the same.Michal Strnad is the owner of Czechoslovak Group, an international industrial technology holding firm that builds on the tradition and culture of the Czechoslovak industry. CSG supports the growth of Czech and Slovak firms engaged in civil and defense industrial production and trade. CSG and its affiliates employ more than 10,000 people. The holding’s revenues will reach 25 billion CZK in 2022. CSG is divided into five strategic business segments: aerospace, ammunition and defense, mobility, business projects, and business projects.
Vista Outdoor (NYSE VSTO) owns more than 30 renowned brands which design, manufacture and sell sporting and outdoor products. Brands include Bushnell CamelBak Bushnell Golf Foresight Sports Fox Racing Bell Helmets Camp Chef Giro Simms Fishing QuietKat Stone Glacier Federal Ammunition Remington Ammunition. Our Outdoor Products and Sporting Products segments provide consumers with an array of innovative, high-quality and performance-driven outdoor and sporting products. For more information, visit www.VistaOutdoor.com.
Similar Posts:Tags: CCI, CSG, Czechoslovak Group, Federal, HEVI-Shot, Remington, Speer, Vista Outdoor, Vista Outdoor Sale
