Vista Outdoor’s Kinetic Group Up for Sale: Alternative Bidder Increases Offer to $2 Billion, Termination Fees in Play

Vista Outdoor considering new $2 billion bid for ammunition business

Vista Outdoor, an outdoor products company, has received a new offer to acquire its ammunition business, the Kinetic Group. The offer comes from an unnamed bidder who had previously made an offer and has now increased it to more than $2 billion. Meanwhile, the board of directors of Vista Outdoor rejected the latest revised bid by U.S.-based investment group MNC Capital for more than $3 billion for the entire company.

The Vista board had engaged with over 24 parties for various bids to acquire all or portions of the company before accepting an offer from CSG in October. However, if Vista ends up accepting a different bid, it will owe CSG a $47.75 million termination fee. In recent filings with the Securities and Exchange Commission (SEC), an alternative bidder sent a letter to Vista’s board of directors on June 3 revising their earlier offer. The bidder said they would pay $1.91 billion for the Kinetic Group and split the $47.75 million termination fee with Vista.

On June 5, the alternative bidder said that they would pay more than $2 billion in cash for the Kinetic Group and that Vista would pay the full termination fee to CSG. The Vista board debated this offer with their financial and legal experts before rejecting it on June 7th. Despite this rejection, on June 8th, the alternative bidder responded with a “cash free, debt free” offer of over $2 billion, which was accepted by Vista Outdoor’s board of directors later that day

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