Vista Outdoor agrees deal to sell its ammunition and sporting goods divisions for $3.4 billion

Core Viewpoint - Vista Outdoor is selling its two divisions, Revelyst and Kinetic Group, for a total of approximately $3.4 billion, with the sale of Revelyst valued at around $1.13 billion and Kinetic Group at about $2.23 billion [1][3][4]. Group 1: Transaction Details - The sale of Revelyst, the sporting goods business, is an all-cash transaction expected to be completed by January [3]. - The sale of Kinetic Group, Vista's ammunition business, has seen an increase in sale price from $2.15 billion to approximately $2.23 billion due to an amendment in the merger agreement [4]. - The combined enterprise value of both transactions is estimated at $3.35 billion, which will provide around $45 per share in cash to Vista Outdoor stockholders [4]. Group 2: Strategic Implications - The chairman of Vista Outdoor's board emphasized that these strategic sales are aimed at unlocking maximum value for shareholders and positioning both divisions for continued success under new ownership [5]. - Czechoslovak Group is advised by JPMorgan for the Kinetic Group deal, while Morgan Stanley is advising Vista Outdoor [5]. Group 3: Company Performance - Vista Outdoor's stock price has increased by approximately 35% since the beginning of the year [6]. - The company, which employs nearly 6,000 people globally, announced its plan to split into two divisions in 2022 [6].