At 10 a.m. yesterday morning, Vista Outdoor shareholders were scheduled to vote on the $2.15 billion sale of their ammunition division to Czechoslovak Group (CSG). Instead, Vista cancelled the vote and officials now say the company will seek “strategic alternatives.”
According to market experts, Vista is now engaging with MNC Capital, the investment group that had offered more than $3 billion for the entire company. CSG and MNC have fought since the first of the year over their bids, with both increasing their offers in response.
Gates Capital, the investment company that owns nearly 10% of Vista’s stock, has opposed the CSG deal, and has campaigned tirelessly to get the company to “engage” with MNC regarding their $42 per share offer. Vista shares closed at $40.80 per share yesterday, an increase of $1.96/share.
The special shareholder meeting has now been rescheduled for September 13.
Personally, if they sell to a foreign entity, I will likely seek an alternative to Federal Ammo…and several other products.
I’m sure a many other feel the same way.
i agree Jim, but not because foreign = boycott. instead, foreign imports are subject to congressional and executive branch control unlike domestic products. this move puts access to an important ammunition source in potential jeopardy.
“Foreign imports”? The whole point of foreigners buying an American company is to continue producing in the US. They aren’t going to move the factory overseas an export ammo to the US.
I hope that the Vista Outdoors management is looking at the US based offer to avoid foreign entanglements. My choice is always US made if I have that chance.
I just received my first order of PSA’s AAC ammo (250 rounds of 300 BLK 150gr FMJ), and if it performs well- AAC will be my go-to home-grown bulk ammo source.
The Czech offer looks to be dead now. This is very disappointing. CSG actually cares about the shooting community whereas a Wall Street hedge fund does not. Varget is already at $59 a pound. Expect prices to further increase when Vista ownership transfers to a hedge fund thats only focused on quick profits.