Vista Outdoor, Inc. reported that the deal to merge its sporting products business with Czechoslovak Group a.s. (CSG) has cleared the antitrust clearance period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
In October, Vista agreed to sell its Sporting Products segment, including CCI, Federal, Hevi-Shot, Remington, and Speer, to CSG, a defense-oriented firearms company based in Czechoslovakia. The all-cash deal is valued at $1.9 billion on an enterprise value basis, including debt.
The transaction remains subject to receipt of the required regulatory approvals, including approval from the Committee on Foreign Investment in the United States, the approval of the company’s stockholders and other customary closing conditions. The companies believe the merger will close during the calendar year 2024.
The transaction is supported by $1.11 billion of fully committed debt financing, with the remaining amount funded by CSG.
The valuation for the asset was approximately 5X the enterprise value of the sporting products business’ FY24 EBITDA, including estimated standalone costs.
To effect the transaction, VSTO will separate its outdoor products business from its sporting products business, and CSG will merge one of its subsidiaries with Vista Outdoor.
Public stockholders of VSTO will receive shares of outdoor products and approximately $750 million in cash in the aggregate.
Photo courtesy Hevi-Shot
