Firm seeks purchase of Vista Outdoor
Mar. 2—Yet another potential buyer has surfaced with a proposal that would include the acquisition of Lewiston's CCI/Speer ammunition-making operations.
The parent company of CCI/Speer, Vista Outdoor, confirmed Friday in a news release that it has received an "unsolicited" interest from MNC Capital, of Canada, in acquiring Vista Outdoor in an all-cash transaction for $35 per share.
The proposal is happening at a time when Vista Outdoor has already agreed to sell its Sporting Products group, the part of its business with ammunition production, to Czechoslovak Group (CSG) for $1.91 billion in an all-cash transaction. That proposed transaction became public in October. The company has indicated the deal should be completed in 2024.
"Vista Outdoor's Board of Directors is carefully reviewing the MNC indication, in accordance with its fiduciary duties and its obligations under the existing merger agreement with CSG, in consultation with its financial and legal advisors," according to the news release.
The board of directors at Vista Outdoor remains committed to acting in the best interest of its shareholders, according to the news release.
About 1,400 of the 4,500 employees in Vista Outdoor's Sporting Products segment work at CCI/Speer, one of the largest employers in north central Idaho and southeastern Washington.
The other Sporting Products brands are Federal, HEVI-Shot and Remington.
MNC Capital's interest in Vista Outdoor comes at a time when the company is dealing with numerous issues in recent months.
Colt CZ Group SE in the Czech Republic had proposed combining with Vista Outdoor in November in a deal that was rejected by Vista Outdoor less than two weeks after it was announced.
Vista Outdoor had previously announced plans to split the Sporting Goods segment from its Outdoor Products segment that has brands such as Camp Chef, Camelbak and Simms Fishing. That part of the company will become Revelyst and trade under the ticker "GEAR" on the New York Stock Exchange.
At the same time, Vista Outdoor is facing financial challenges.
Vista Outdoor lost $148 million in October, November and December compared with earning $65 million during the same time in 2022, according to its financial report for the third quarter of its 2024 fiscal year released Jan. 31. Sales of both ammunition and outdoor gear had fallen, according to the report.
The news release Vista Outdoor issued Friday provides few details about MNC Capital or its offer.
Based in Montreal, MNC Capital is an "internationally renowned mergers and acquisitions firm," which was established in 1979, and deals with midmarket enterprises like private corporations and Fortune 500 companies, according to its website.
MNC Capital has relationships with top global financial institutions, private equity firms and public corporations, according to its website.
"We are a strategic business partner that offers focused, pro-active results to companies looking to increase their market share and maximize shareholder value," according to its website.
Williams may be contacted at ewilliam@lmtribune.com or (208) 848-2261.
