Vista Outdoor Inc. (VSTO) announced Monday that it entered into an amendment to the merger agreement with Czechoslovak Group a.s., whereby Czechoslovak Group raised its offer for the base purchase price payable for the acquisition of The Kinetic Group business by $40 million to $2 billion from $1.96 billion.
It also increased the cash consideration payable to Vista Outdoor stockholders by $2.00 per share of Vista Outdoor common stock to $18.00 from $16.00 in cash, a 12.5% increase.
Based on the amended merger agreement with CSG, Vista Outdoor stockholders will receive at the closing of the transaction, per share of Vista Outdoor common stock, one share of Revelyst common stock and $18.00 in cash.
In light of the continued excess cash generation by Vista Outdoor, Vista Outdoor will now be returning an additional approximately $77 million of excess cash to its stockholders as part of the cash consideration in the transaction. This return of excess cash to Vista Outdoor stockholders is in addition to the increase in the purchase price payable by that will also be delivered to stockholders.
Vista Outdoor said it is fully committed to the transaction and its Board of Directors reaffirms its recommendation that its stockholders vote in favor of the transaction.
The transaction is expected to close in calendar year 2024 subject to approval of Vista Outdoor\'s stockholders, receipt of clearance by the Committee on Foreign Investment in the U.S. (CFIUS) and other customary closing conditions. The Company remains confident in its ability to receive CFIUS clearance for the Transaction and that all other closing conditions will be satisfied.