USA largest civilian ammo producer sold their factories
A sad day.. USA largest civilian ammo producer sold their factories.
ANOKA, Minn.--(BUSINESS WIRE)-- Vista Outdoor Inc. (NYSE: VSTO) (“Vista Outdoor”), the parent company of 41 renowned brands that design, manufacture and market sporting and outdoor products to consumers around the globe, today announced a definitive agreement to sell its Sporting Products business to Czechoslovak Group a.s. (“CSG”) for an enterprise value of $1.91 billion in an all-cash transaction subject to customary closing conditions. This transaction represents the next step in Vista Outdoor’s plan to split the company into separate entities, which was previously announced on May 5, 2022.
CSG is a leading industrial technology holding company, operating within five strategic business segments, including defense, aerospace, ammunition, mobility and business. CSG is 100% owned and led by Michal Strnad, who has transformed it into a leading Czech industrial group with a strong international footprint. CSG employs more than 10,000 people worldwide and it owns and manages a diverse portfolio of industrial and trade companies across the defense and civil sectors.
“This is an important strategic step for our company in creating value through separating our Outdoor Products and Sporting Products segments,” said Gary McArthur, interim CEO of Vista Outdoor. “The previously announced plan to separate our businesses has positioned us to execute seamlessly on this transaction, which we believe is the best path to maximize value for our stockholders, while better positioning Sporting Products and Outdoor Products for future success.”
“We are confident that CSG is a great home for our leading ammunition brands,” said Jason Vanderbrink, CEO of Sporting Products. “The company is fully committed to our iconic American brands and expanding our legacy of U.S. manufacturing, support for military and law enforcement customers, and investments in conservation and our hunting and shooting heritage. We are excited to work closely with the CSG team as we enter this next phase and position our brands for long-term success.”
I'm sure there are a few examples of companies being improved by these corporate acquisitions, but I'd bet they are rare. At least they didn't sell to China.
October 22, 2023, 08:44 AM
RogueJSK
For those who don't recognize the names of the parent companies, you can think of this as Fiocchi acquiring Federal/CCI/Speer.
October 22, 2023, 09:20 AM
Lt CHEG
quote:
Originally posted by RogueJSK: For those who don't recognize the names of the parent companies, you can think of this as Fiocchi acquiring Federal/CCI/Speer.
I think in this case that might be an improvement. That is in no way a knock on Federal/CCI/Speer, rather concerns over corporate leadership vis a vis Vista outdoors. Fiocchi makes excellent products and I’ve visited some of their manufacturing facilities here in the US and found them to be very impressive. I think in this case, the acquiring conglomerate is actually proud of being in the ammunition business, whereas Vista Outdoors saw their ammunition business as an “icky” necessity otherwise incongruous with their woke ideals. I’m taking a cautiously optimistic approach to this news.
“It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat.”
Neck Ties, Hats and ammo brass, Never ,ever touch'em w/o asking first
October 22, 2023, 01:46 PM
Jelly
quote:
Originally posted by RogueJSK: For those who don't recognize the names of the parent companies, you can think of this as Fiocchi acquiring Federal/CCI/Speer.
Yes along with Remington ammo and HEVI Shot.
October 22, 2023, 02:34 PM
kimber1911
Should be a pretty straight forward class-action lawsuit, as Vista Outdoors mis-led their stockholders.
The sale was a bit of surprise to stockholders who lost a considerable amount on Tuesday.
I am willing to bet the vast majority of stockholders had intended to invest in a company manufacturing ammunition rather than water bottles.
It should also be a bit concerning that the U.S. Government would allow for 70% of civilian ammunition manufacturing be sold off to a foreign company, 100% owned by a single 30 year old billionaire in Prague who has made a fortune on the Ukraine war.
Not trying to disparage this gentlemen, but definitely shows bad judgement on U.S. policy to sell off critical infrastructure.
“We’re in a situation where we have put together, and you guys did it for our administration…President Obama’s administration before this. We have put together, I think, the most extensive and inclusive voter fraud organization in the history of American politics,” Pres. Select, Joe Biden
“Let’s go, Brandon” Kelli Stavast, 2 Oct. 2021
October 22, 2023, 02:50 PM
nhtagmember
The US Government probably welcomed the sale as it removes a source of ammunition from the American people.
October 22, 2023, 02:54 PM
83v45magna
quote:
Originally posted by Lt CHEG: I think in this case, the acquiring conglomerate is actually proud of being in the ammunition business, whereas Vista Outdoors saw their ammunition business as an “icky” necessity otherwise incongruous with their woke ideals. I’m taking a cautiously optimistic approach to this news.
Me too. Notice in the press release they said this was an all cash transaction. This likely means Blockrock or other associated shitheads likely had no hand in this at all.
October 22, 2023, 03:15 PM
kimber1911
A bit more information on the Czechoslovak Group (“CSG”) can be found on their website.
“We’re in a situation where we have put together, and you guys did it for our administration…President Obama’s administration before this. We have put together, I think, the most extensive and inclusive voter fraud organization in the history of American politics,” Pres. Select, Joe Biden
“Let’s go, Brandon” Kelli Stavast, 2 Oct. 2021
October 22, 2023, 07:53 PM
sjtill
Interesting that JP Morgan is the sole financial adviser shepherding this deal. This guy didn’t buy the ammo business to lose money or decrease production. Vista clearly did not have its heart in this business.
_________________________ “Remember, remember the fifth of November!"
October 22, 2023, 09:28 PM
sigcrazy7
Good. The Czechs have a long, proud tradition of arms production. I can think of few who I’d rather see own it.
Demand not that events should happen as you wish; but wish them to happen as they do happen, and you will go on well. -Epictetus
October 22, 2023, 10:13 PM
parabellum
quote:
Originally posted by sjtill: This guy didn’t buy the ammo business to lose money or decrease production.
Yes, as much as I'd rather that the ownership of this company remained American, I don't think this sale will hurt us, and it may even benefit us.
October 23, 2023, 01:41 PM
CD228
It reminds me of the sale of Colt and Dan Wesson to CZ.
October 23, 2023, 09:32 PM
captain127
quote:
Originally posted by nhtagmember: The US Government probably welcomed the sale as it removes a source of ammunition from the American people.
The group that bought the vista group like all other businessmen has but one goal to make money. The most fertile field for making money in ammunition sales ( outside massive military contracts) is the United States. I highly doubt this will change anything, except perhaps make ammo better or more available. ( the Eastern Europeans tend to be savvy business men / women, and from my experiences no one embraces “American “ type freedoms like the 2nd that people who survived oppression behind the iron curtain) Look at the drastic difference for example in the quality of European 22 ammo ( eley lapua SK) compared to the junk American makers pump out. I do a lot of 22 shooting, and it wouldn’t entirely surprise me if the new owners of vista make a run at producing match grade 22 ammo domestically
October 24, 2023, 12:09 AM
scot818
quote:
Originally posted by nhtagmember: The US Government probably welcomed the sale as it removes a source of ammunition from the American people.
BINGO!
October 24, 2023, 01:35 AM
KMitch200
quote:
Originally posted by scot818:
quote:
Originally posted by nhtagmember: The US Government probably welcomed the sale as it removes a source of ammunition from the American people.
BINGO!
How so? Fiocchi has been making ammo in the US for a while now hasn’t it? Did the CZ plant slated for Little Rock get built? I know there were some delays back in 2020 or so.
-------- After the game, the King and the pawn go into the same box.
October 24, 2023, 03:02 AM
DanH
quote:
Originally posted by KMitch200: Did the CZ plant slated for Little Rock get built? I know there were some delays back in 2020 or so.
They abandoned it when they bought Colt.
October 24, 2023, 02:04 PM
HRK
From the other thread there is a good article and it contains the press releases from both Visa and the buyer CSG.
And the plot thickens. A competing offer from a Texas company has emerged, amid a national security review of the potential sale to CSG.
Dallas-based MNC Capital Partners is apparently made up of a group of wealthy Texas families, and their effort here is being led by Mark Gottfredson, who was previously on the Board of Directors of Vista until he resigned in January 2024.
A Higher Bid, and National Security Concerns, for an Ammunition Maker
MNC Capital has raised its takeover offer for Vista Outdoor, the owner of Remington ammunition — and amplified worries about a non-American rival bidder.
Raised stakes in a firearms takeover contest
A battle over Vista Outdoor, the company behind top ammunition brands like Remington and Camelbak water bottles, is escalating — and national security is becoming a bigger factor in the fight.
The investment firm MNC Capital on Monday raised its bid for the company to $3 billion, DealBook is first to report, hoping that a more generous offer — and further uncertainty that a rival bidder, the Czechoslovak Group, can pass a U.S. national security review — will win over Vista’s shareholders.
MNC is offering $37.50 a share for all of Vista, up from a bid of $35 last month and 16 percent higher than where Vista’s stock closed on Friday. In a letter to Vista’s board reviewed by DealBook, the investment firm reiterated that it had lined up financing for its offer, despite questions by Vista about how solid those commitments were.
Vista rejected MNC’s previous offer, saying a planned breakup of itself would be more valuable for shareholders. (Vista has agreed to sell its ammunition business to CSG for $1.9 billion, leaving its nonfirearm division, Revelyst, as a stand-alone public company.)
MNC argued that its new offer assigns Revelyst $1.1 billion in enterprise value, nearly double the $570 million implied by the CSG deal.
In its letter, MNC amplified concerns about national security. The CSG deal has been under review by the Committee on Foreign Investment in the United States, the federal interagency panel that reviews certain investments by overseas buyers in U.S. companies. (As an American firm, MNC isn’t subject to such a review.)
Worries about foreign ownership of industrial assets have become a bigger factor in deal making over the past year, complicating transactions involving even U.S. allies like Japan, in the case of the proposed sale of U.S. Steel to Nippon Steel.
MNC asserted that the CSG deal would give a foreign-owned company commanding control of the West’s supply of primers, the propellant in ammunition.
CSG has faced tough scrutiny before. The Czech company’s C.E.O., Michal Strnad, said in 2022 that it took his company “seven long months” to win CFIUS approval for its acquisition of Fiocchi, another arms maker.
Vista has said that it expects “to receive all necessary regulatory approvals, including with respect to CFIUS.” A spokesman for CSG declined to comment.
The clock is ticking for MNC. The foreign investment committee is expected to rule on the CSG deal as soon as this week. It could clear the transaction, impose conditions for approval or recommend that President Biden block it.
Vista has set May 16 as a date for a shareholder vote on the CSG bid, open to investors who hold its stock as of April 1.
This message has been edited. Last edited by: RogueJSK,