Czechoslovak Group (CSG) has clarified that it wants to close a deal to acquire the Vista Outdoor ammunition business while making critical points for the upside for Vista shareholders, consumers and the U.S. government.
The effort by CSG comes on the heels of challenges to the acquisition deal the company worked out with Vista, which was initially vetted by the FTC (see SGB Media’s coverage at bottom).
CSG on Monday, April 8, issued a statement reaffirming its commitment to the proposed all-cash acquisition (Acquisition) of Vista Outdoor, Inc.’s Sporting Products business, recently rebranded The Kinetic Group, for a total consideration of $1.91 billion, with fully committed financing from U.S. bank JP Morgan Chase.
CSG also highlighted the benefits of its planned Acquisition.
“We have a demonstrated history of supporting the long-term growth of our portfolio companies,” the company said in a media statement. “We look forward to successfully closing the Acquisition of The Kinetic Group and becoming the steward of such venerable American brands as Federal, CCI and Remington. As we have publicly stated, we intend to keep in place The Kinetic Group’s existing leadership, invest in the business and continue production in the U.S.”
CSG noted that it had demonstrated its commitment to manufacturing in the U.S. and has continued to invest in the U.S. facilities it owns in Little Rock, AR, and Ozark, MO, as part of its 70 percent ownership stake in Fiocchi Munizioni, the Italian ammunition company acquired by CSG in 2022. The company said it had increased output at those plants, allowing it to supply even more to its U.S. customers., and is currently considering expanding its U.S. production capacity.
“We are a significant supplier to NATO and Ukraine and have no ties to Russia, China or other U.S. adversaries,” the company continued. “CSG is among the top providers of artillery ammunition for NATO and recently announced that we intend to invest several hundred million dollars more in our ongoing efforts to bolster Ukraine’s defense capabilities by expanding our supply of artillery ammunition, tanks and artillery systems to the country. Several of our companies hold top NATO security clearances, and we work with U.S. defense companies. This would not be possible if we had ties to U.S. adversaries such as Russia or China.”
The concerns addressed regarding national defense and NATO come on the heels of a letter from a Louisiana Congressman who had asked Treasury Secretary Janet Yellen to get involved with the approval process for the acquisition (see SGB Media coverage at bottom).
“CSG understands the special importance to American consumers of the brands that are part of The Kinetic Group,” the company added. “Our senior team includes experienced industry professionals who manage our firearms-related businesses. We have demonstrated through our ownership of Fiocchi Munizioni and Armi Perazzi that we are deeply committed to providing high-quality products to customers. Our focus will be on preserving and developing the entire product portfolio of the business and maintaining the standards that customers expect.”
Czechoslovak Group describes itself as an international industrial technology holding company that supports the development of Czech and Slovak companies engaged in defense and civil industrial production and trade. The company operates under the leadership of CEO and 100 percent owner Michal Strnad. CSG companies and affiliates employ over 10,000 people.
In the future, one item that may get a second look is Slovakia’s weekend election of a new pro-Russian president. At a minimum, the U.S. Congress and the CFIUS committees and agencies with authority to green-light the deal may want assurances that CSG’s close relationship with Slovakia does not result in U.S.-branded ammunition finding its way into Russia.
Image courtesy CSG
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See below for more SGB Media coverage of the ongoing activity surrounding this proposed acquisition.
EXEC: Vista Outdoor Re-Files CFIUS Notice to Extend Review Period for Ammo Business Sale
Vista Outdoor Confirms Receipt of Revised Indication of Interest from MNC Capital
EXEC: MNC Capital Partners Ups Ante in Vista Outdoor Takeover Bid
