Vista Outdoor Sells Revelyst in $1.125B Deal with SVP

Vista Outdoor Inc. has agreed to sell Revelyst to Strategic Value Partners in an all-cash transaction worth $1.125 billion. The move comes alongside an increase in the purchase price for The Kinetic Group during an ongoing merger, indicating strategic consolidation efforts within the company.

Date: 05-10-2024

AI Rating: 7

Vista Outdoor Inc. (VSTO) has made significant moves involving both the sale of Revelyst and an amendment to a merger agreement with Czechoslovak Group (CSG). The sale of Revelyst to Strategic Value Partners (SVP) for $1.125 billion is a notable transaction that will directly affect stockholders, who will receive $19.25 in cash per share of Revelyst.

Moreover, the merger with CSG to acquire The Kinetic Group has also undergone changes, with the purchase price increasing to $2.225 billion and the termination date extended to December 11, 2024. This deal is structured such that Vista Outdoor's stockholders will receive $25.75 in cash along with one share of Revelyst stock for each share of Vista Outdoor they hold.

Collectively, these transactions represent a robust enterprise value of $3.35 billion and are expected to deliver approximately $45 per share to Vista stockholders. This substantial per-share value from the combination of both transactions suggests strong upside potential for investors.

Despite no specific information presented about Earnings Per Share (EPS), revenue growth, net income, profit margins, free cash flow, or return on equity, the deals indicate a strategic focus on enhancing shareholder value and consolidating businesses that may lead to improved operational efficiency in the long run.

Stocks: VSTO