Vista Outdoor gets key regulatory approval and yet another increased bid from second suitor

Vista Outdoor's stock gained more than 9% in value on Wednesday after a deal to sell its ammunition unit to the Czechoslovak Group cleared a huge regulatory hurdle and a rival bidder quickly increased its offer.

The $2 billion deal to sell the Kinetic Group, which includes the Federal, Remington and Speer ammunition brands, received final approval Tuesday from the Committee on Foreign Investment in the United States (CFIUS).

MNC Capital, a U.S. investor group, upped its offer for the entire Vista Outdoor company to $42 a share, or approximately $3.2 billion, Wednesday in response to the CFIUS approval.

Shares of Vista Outdoor closed Wednesday at $36.86 a share, up 9.1% Wednesday. The price of Vista Outdoor over the last 52 weeks has ranged between $37.05 and $23.33 a share.

Vista leaders reaffirmed their support for the CSG deal, which goes in front of shareholders next week.

"We are very pleased that CFIUS has carefully vetted the transaction and, as we expected, determined that there are no unresolved national security concerns," said Michael Callahan, chair of Anoka-based Vista's board of directors. "We believe the end result supports our view that CSG — which has deep expertise in supply chain excellence and ammunition manufacturing and strong support for NATO and allied nations — will be an excellent owner of the Kinetic Group."

Several conservative lawmakers, including Ohio Sen. J.D. Vance, and law enforcement groups had raised concerns to the CFIUS about a major U.S. manufacturer of ammunition and primers being purchased by a company based in the Czech Republic.

Vista Outdoor and CSG had withdrawn and refiled their initial CFIUS request in March, a move that signals the committee needs more time for review. The CFIUS process is confidential, so it's unclear why the panel needed more time.

This is the second time Prague-based CSG has gained CFIUS approval for a deal. In 2022, CSG Group acquired a 70% interest in the Italian ammunition company Fiocchi Munizioni. CFIUS approval was needed for that transaction because a Fiocchi subsidiary has two manufacturing plants in the United States.

Vista shareholders will vote on the CSG deal at a special meeting on Tuesday. If shareholders approve the CSG deal Vista's outdoor products segment — which includes Foresight Sports, Bell, Fox and CamelBak brands — would become an independent public company called Revelyst Inc.

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