Vista Outdoor, Inc. [VSTO] and the Czechoslovak Group
(CSG) on Monday say that CSG has agreed to acquire Vista’s Sporting Products business for $1.9 billion, giving the Prague-based defense company several ammunition brands used by hunters, sportsman, federal and local law enforcement agencies, and the U.S. military.
Vista, which is based in Minnesota, owns Federal, Remington, CCI, Speer, and HEVI-Shot ammunition brands. The transaction is subject to shareholder and regulatory approvals and is expected to close in 2024.
Outdoor Products, Vista’s other operating segment, which has been rebranded as Revelyst, will become a standalone public company when the deal is completed.
Vista Outdoor was created in 2015 through a spin-off of the former ATK’s sporting group business. Simultaneous with the divestitures, Orbital Sciences acquired ATK to create Orbital ATK, which was later purchased by Northrop Grumman [NOC].
“This transaction perfectly fits with our strategy of expanding the key pillars of our business,” Michal Strnad, owner and CEO of CSG, said in a statement. “I am proud that our company and the Czech defense industry managed to realize the most significant Czech investment in the U.S. market to date, which will deepen the strategic industrial relations between the two countries.”
Jason Vanderbrink will remain CEO of the Sporting Products business and its U.S. headquarters will remain in Anoka, Minn. The Sporing Products had $1.8 billion in sales and $552 million in operating income for the fiscal year that ended in March. The business has 4,000 employees.
Vista’s financial adviser on the deal is Morgan Stanley. J.P. Morgan is advising CSG.