Vista Outdoor jumps after deal to sell to two buyers for $3.4 bln

Vista Outdoor

07/10/2024 16:05

(Updates)
    ** Shares of sporting goods and ammunitions maker Vista
Outdoor  VSTO.N  rise as much as 10.2% to $43.90, their highest
since January 2022
    ** Company on Friday agreed to sell itself in parts to two
separate buyers for a total of $3.35 billion, including debt
    ** VSTO struck a deal to sell its sporting goods unit,
Revelyst, to investment firm Strategic Value Partners for $1.1
billion, according to a statement seen by Reuters
    ** Also agreed to revise the terms of a previously agreed
deal to sell its ammunitions business Kinetic to Prague-based
defense contractor Czechoslovak Group (CSG)
    ** CSG raised its offer for Kinetic by $75 mln to $2.2 bln
    ** Together, the two deals value Vista at $45 per share
    ** Deal culminates months-long bidding war kicked off
earlier this year, with Vista rebuffing multiple offers from
investment firm MNC Capital
    ** As of last close, Vista stock up about 35% YTD
    

 (Reporting by Savyata Mishra in Bengaluru)
 ((Savyata.Mishra@thomsonreuters.com))