ANOKA, Minn. (BRAIN) — Vista Outdoor, which has agreed to sell its Sporting Products business to Czechoslovak Group a.s. for $1.91 billion, has rejected an unsolicited offer from Czech Republic-based firearms company Colt CZ to buy the entire company.
Vista Outdoor's plan is to sell its Sporting Products business, which includes its ammunition brands, to Czechoslovak Group, and to spin off its Outdoor Products business, which includes several bicycle accessory brands, into a new company to be called Revelyst.
The Colt CV bid would have acquired the entire company for a combined stock and cash transaction that valued each share of Vista Outdoor common stock at $30.
After considering the Colt CV bid, the board decided to reject for a number of reasons, including that it believes the $30 per share offer significantly undervalues the company. The board also said the bid does not provide adequate details and does not take into account "the significant stockholder value that is expected to be created by the separation of the Outdoor Products and Sporting Products segments of Vista into two independent companies, each with its own dedicated strategic focus, enhanced ability to attract and retain top talent, tailored capital allocation philosophy, and set of competitive advantages."
The board continues to recommend going forward with the sale of the Sporting Products business to Czechoslovak Group.
