Vista Outdoor sells Revelyst and The Kinetic Group to two buyers for 3.5 billion dollars

Outdoor sports products manufacturer Vista Outdoor has secured two deals to offload performance gear brand Revelyst and its ammunition business, the Kinetic Group, following a long-winded bidding battle.

For Revelyst, Vista Outdoor has entered into a definitive agreement with funds managed by Strategic Value Partners, LLC, (SVP) and its affiliates, a global alternative investment firm, to sell the brand via an all-cash transaction based on an enterprise value of 1.125 billion dollars.

In the case of the Kinetic Group, meanwhile, the company has finally landed on Czechoslovak Group (CSG) as the buyer for the division, in a deal that comes with an increased purchase price of 2.225 billion dollars.

CSG had initially been in a bidding war with MNC Capital Partners and Colt CZ Group over the purchase of the Kinetic Group, the latter having first brought forth an unsolicited takeover bid in November 2023.

Now, with CSG coming out on top, the sale of Revelyst is subject to the completion of the Kinetic transaction, and is therefore expected to close by January 2025 upon receipt of necessary regulatory approvals, Vista Outdoor said.

The company noted that the acquisition by SVP would position the brand to “continue to capitalise on the increasing demand for outdoor activities and gear”, leveraging its “strong market presence” to drive long-term growth.

CSG and Vista have already received regulatory approvals for the agreement over Kinetic and are prepared to close the transaction prior to the end of 2024, subject to stockholder approval. The duo have also mutually agreed to extend the termination of the CSG merger agreement to December 11, 2024.

The result of the two transactions will put into motion a separation of the Kinetic Group and Revelyst, with CSG to no longer invest in the latter upon the closure of its own agreement.