Vista Outdoor receives $2.01B alternative offer for The Kinetic Group

Vista Outdoor confirmed that it received an indication of interest from a U.S. based private investment firm, which was involved in the prior sales process for The Kinetic Group in 2023, pursuant to which the alternative party would acquire The Kinetic Group for $2.01B in cash, on a cash-free, debt-free basis. The $47.75M break fee payable to Czechoslovak Group in the event that Vista Outdoor determined to terminate the merger agreement with CSG and enter into a transaction with the alternative party would be payable by Vista Outdoor. The alternative party stated that it would commit to fully supporting the purchase price and is prepared to execute definitive agreements no later than June 14. The board of directors has determined the indication of interest from the alternative party would reasonably be expected to lead to a superior proposal and meets the standard for engagement under the terms of the CSG merger agreement. The company remains bound by the terms of the merger agreement with CSG, and the Vista Outdoor Board continues to recommend the acquisition of The Kinetic Group by CSG. In addition, Vista Outdoor continues to be confident that it will receive clearance from the Committee on Foreign Investment in the United States, or CFIUS, with respect to the proposed transaction with CSG and that all other closing conditions will be satisfied. There can be no assurance that the Vista Outdoor Board will ultimately determine that the indication of interest from the alternative party is a superior proposal, that the terms of a transaction with the alternative party will be the same as those reflected in its indication of interest or that any transaction with the alternative party will be agreed to or consummated.