ANOKA, Minn. - Vista Outdoor Inc . (NYSE:VSTO) has announced the adjournment of its special stockholders' meeting, originally scheduled to approve a merger with Czechoslovak Group a.s. (CSG), to October 9, 2024. This decision comes as the company engages in ongoing discussions with CSG and an unnamed private equity firm regarding the potential sale of its subsidiary, Revelyst.
The delay sets the new meeting date just six days before the merger agreement's termination date of October 15th. Vista Outdoor's Board of Directors continues to recommend that stockholders vote in favor of the transaction with CSG, emphasizing their commitment to maximizing shareholder value.
Shareholders in need of assistance with proxy voting or additional materials can reach out to Innisfree M&A Incorporated, the company's proxy solicitor. Financial advisory for the transaction is provided by Morgan Stanley & Co. LLC for Vista Outdoor, and Moelis (NYSE:MC) & Company LLC for the independent directors, with legal advice from Cravath, Swaine & Moore LLP and Gibson, Dunn & Crutcher LLP, respectively.
Vista Outdoor is a parent company to over thirty-five brands in the outdoor and sporting goods industry, including well-known names such as Bushnell, CamelBak, and Federal Ammunition. The company operates through two segments, Outdoor Products and Sporting Products, offering a variety of high-quality goods to consumers.
This press release contains forward-looking statements regarding the company's expectations, strategies, and financial projections, all of which are subject to numerous risks and uncertainties. These statements are intended to fall within safe harbor provisions for forward-looking information.
The information provided is based on a press release statement and is intended for general informational purposes only, without any endorsement of the claims. Investors are advised to read all relevant documents filed with the SEC, including the proxy statement/prospectus, for a comprehensive understanding of the transaction and its implications for the parties involved.
In other recent news, Vista Outdoor Inc. has been the subject of several strategic proposals. Gates Capital Management, a significant shareholder, has urged Vista to pursue an all-cash sale of the entire company, contrary to a proposed sale of The Kinetic Group to the Czechoslovak Group a.s. (CSG). Notably, Gates Capital opposes the current proposal due to the potential of a more lucrative sale of Revelyst to a private equity firm.
Meanwhile, MNC Capital Partners, L.P. has reaffirmed its commitment to a $43 per share all-cash offer to acquire Vista Outdoor Inc. Simultaneously, Vista's Board of Directors has recommended a transaction with CSG for the acquisition of The Kinetic Group and an investment in Revelyst, which is expected to significantly increase its Adjusted EBITDA and achieve run-rate cost savings of $100 million by fiscal year 2027.
In financial performance, Vista Outdoor reported a 7.1% decrease in total sales to $644.2 million and a 6.5% decline in earnings per share to $1.01. However, Revelyst is expected to double its Adjusted EBITDA sequentially for the quarter and the year. Roth/MKM has downgraded Vista Outdoor's stock from Buy to Neutral, acknowledging potential long-term value in Vista Outdoor's Revelyst shares. These are the recent developments in Vista Outdoor Inc.'s operations.
InvestingPro Insights
As Vista Outdoor Inc. (NYSE:VSTO) navigates the complexities of its potential merger and subsidiary sale, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, Vista Outdoor has a market capitalization of approximately $2.29 billion USD. Despite recent challenges, the company's P/E ratio stands at 12.65 when adjusted for the last twelve months as of Q1 2025, which may indicate investor confidence in its future profitability. This aligns with an InvestingPro Tip that analysts predict the company will be profitable this year, a crucial factor as the company seeks to maximize shareholder value amid merger negotiations.
InvestingPro Tips also highlight that Vista Outdoor has a high shareholder yield and that its liquid assets exceed short-term obligations, providing the company with a solid financial footing during this period of strategic decisions. However, it is important to note that two analysts have revised their earnings downwards for the upcoming period, suggesting that investors should keep an eye on forthcoming earnings reports and management commentary for additional insights.
For those interested in a deeper dive into Vista Outdoor's financials and market performance, InvestingPro offers additional tips and real-time metrics. As of now, there are 7 additional InvestingPro Tips available for Vista Outdoor at https://www.investing.com/pro/VSTO, which could provide valuable information for investors looking to make informed decisions during this pivotal time for the company.
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