Vista Outdoor's stock rises on boosted $3 billion acquisition offer
By Steve Gelsi
MNC ups its take-private price to $37.50 a share from $35 a share
Vista Outdoor Inc.'s stock rose Monday after MNC Capital boosted its offer to buy the maker of sporting and outdoor products including ammunition by $2.50 a share, to $37.50 a share.
Vista Outdoor's stock (VSTO) moved up by 0.6% to $32.46 a share in morning trading.
Vista Outdoor did not immediately respond to a query from MarketWatch about the higher price.
The offer comes after Vista Outdoor on March 4 rejected an unsolicited bid from MNC Capital for $35 a share in cash.
The latest offer from MNC Capital values Vista Outdoor at about $3 billion.
"MNC is confident that Vista, including its current management and employees, will have a bright future as a private company, and it appreciates the complementary portfolio of brands and assets within the Kinetic Group and Revelyst," MNC said in a statement.
The deal would include the Revelyst business, which Vista Outdoor has agreed to sell to Czechoslovak Group a.s. The $1.9 billion sale of the sporting-product business is pending.
Vista Outdoor planned to shed the unit while retaining roughly 4,000 employees representing four factories and the consumer brands CCI, Federal, HEVI-Shot, Remington and Speer.
Revelyst would then become a stand-alone publicly traded company.
MNC said Monday its $37.50-a-share buyout price for Vista Outdoor $37.50 values Revelyst at $1.1 billion, a 93% premium to Vista's $570 million implied Revelyst stand-alone value from a Feb. 1 investor presentation.
MNC said its offer would not be subject to a financing contingency or to review by the Committee on Foreign Investment in the United States, a regulatory body that reviews cross-border transactions.
-Steve Gelsi
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
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03-25-24 1038ET
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