Vista Outdoor rejects unsolicited bid to buy company

Vista Outdoor – the owner of SIMMS Fishing Products – has rejected an unsolicited indication of interest to buy the group, describing the $35 per share offer as ‘significantly’ undervaluing the business.

In a letter to MNC Capital, Michael Callahan, Chairman of the Vista Outdoor Board of Directors, said: “Following careful review with our experienced team of financial and legal advisers, the Board determined that the transaction contemplated by MNC Capital’s indication of interest significantly undervalues the company and is not in the best interest of shareholders.

“In particular, the indication of interest significantly undervalues the Revelyst business, which we expect to double standalone adjusted EBITDA in FY25 and achieve mid-teens adjusted EDITBA margin in the long-term. The indication also lacks evidence of procured committed financing and is not reasonably capable of being completed.

“We take our fiduciary responsibilities seriously and are always open to opportunities that maximise stockholder value.”

Callahan added that Vista believes that its impending $1.91 billion sale of its Sporting Products business to the Czechoslovakia Group (CSG) and the separation of Revelyst as a standalone public company will drive significantly greater value to its shareholders.

“CSG is fully committed to Sporting Products’ iconic American brands and expanding our legacy of US manufacturing, support for the military and law enforcement customers and investments in conservation and our hunting and shooting heritage.

“At the same time, Revelyst is poised to leverage meticulous craftsmanship and cross-collaboration across its portfolio of category-defining brands as a standalone public company. We are confident that this is the best path to unlock value for our stockholders.”

The acquisition of the Sporting Products business by CSG is expected to close this year subject to approvals.