Vista Outdoor, Inc. entered into a definitive agreement, which supersedes all prior oral and written agreements, to sell Revelyst, its outdoor products segment, to funds managed by Strategic Value Partners (SVP) in an all-cash transaction for $1.125 billion. According to the October 4 announcement regarding the Revelyst deal, Vista Outdoor amended its merger agreement with the Czechoslovak Group (CSG) to acquire The Kinetic Group, its sporting products segment, for $2.225 billion.
“The Board has worked tirelessly to deliver maximum value to its stockholders, and we are pleased to have reached this agreement with SVP and CSG which helps us achieve that objective,” said Michael Callahan, chairman of the Vista Outdoor Board of Directors. “The Board engaged in a thorough process to identify the best avenues to unlock value—and through these two separate, but contingent, transactions with SVP and CSG, we have identified a path that reflects the true strength and potential of both Revelyst and The Kinetic Group.”
However the SVP Transaction is subject to the completion of the CSG Transaction. Together, the CSG Transaction and the SVP Transaction represent an enterprise value of $3.35 billion for Vista Outdoor and will deliver an estimated $45 per share in cash to Vista Outdoor stockholders.
Revelyst has three segments: Adventure Sports (Fox Racing, Bell, Giro, CamelBak, QuietKat, and Blackburn); Outdoor Performance (Simms, Bushnell, Blackhawk, Stone Glacier, Camp Chef, and Primos); and Precision Sports Technology (Foresight Sports, Bushnell Golf, and Pinseeker). Kinetic includes the Federal, Remington, CCI, Hevi-Shot, and Speer ammunition brands. After consolidating its real estate footprint in the past year, Revelyst operates three platforms: Revelyst Adventure Sports in Irvine, Calif.; Revelyst Outdoor Performance in Bozeman, Mont.; and Revelyst Precision Sports Technology in San Diego.
That consolidation was part of the company’s ongoing GEAR Up transformation initiative in which Revelyst is working to unlock its potential by directing resources to better meet consumer demand, synergizing and prioritizing strength in supply chain and doubling down on the equity and innovation of the company’s industry-leading brands.
“We are strong believers in the Revelyst story and the potential of this business,” added David Greenberg, head of SVP’s North American corporate investment team. “We look forward to working with Eric Nyman and the rest of the team leading this world-class outdoor gear and technology business. For almost a year, we closely followed Revelyst’s progress with this complex transaction. During that time, Revelyst has gained share through a difficult period for consumer spending thanks to the strength of its leadership, its employees and efforts like GEAR UP. With this investment, we plan to put SVP’s full operating resources and network behind Revelyst to help accelerate the success of this market leader.”
Vista’s Board unanimously approved the SVP transaction and is expected to close by January 2025, subject to the completion of the CSG transaction and receipt of necessary regulatory approvals and other customary closing conditions. At the closing of the SVP Transaction, SVP will pay Revelyst stockholders an aggregate of $1.125 billion, subject to a net cash adjustment representing an estimated $19.25 in cash per share of Revelyst common stock. As part of the SVP and CSG transactions, CSG will no longer invest in Revelyst at the closing of the CSG Transaction.
“We are excited to partner with SVP and believe this acquisition is a positive step for Revelyst’s future,” concluded Revelyst CEO Eric Nyman. “As I reflect on the last year, I am incredibly appreciative of our management team, our employees and our maker community for getting us here. We couldn’t have done this without everyone’s contribution. I believe the best is yet to come for Revelyst and for our customers, suppliers and retail partners. This partnership with SVP is going to make us a stronger company and afford us more opportunities to innovate and deliver top-tier products to outdoor enthusiasts while enhancing our market leadership in the outdoor recreation industry.”
