Vista Outdoor Stock Rises After Plans To Review Options Amid Bidding War

Vista Outdoor (VSTO) shares surged in premarket trading Tuesday after the company said it would undergo a “review of strategic alternatives” to consider its options amid a monthslong bidding war between The Czechoslovak Group (CSG) and private-equity backed offers from MNC Capital.

“We take the views of our stockholders very seriously and believe it is prudent to evaluate all strategic alternatives,” Vista Outdoor Board Chair Mike Callahan said. “In addition to engaging with CSG and MNC and its private equity partner, we also look forward to reviewing any other strategic alternative for Vista Outdoor that would maximize value for stockholders.”

Reviewing Vista’s Options

CSG, an international defense company, has made a number of offers to acquire the Kinetic Group, the segment of Vista’s company that includes firearm and ammunition brands like Remington. Last week, CSG upped its offer to $2.15 billion, and Vista’s board has recommended multiple times over the last month that shareholders back it.

Meanwhile, Vista has also received offers from MNC Partners to acquire the entire company—including Revelyst, the division that houses outdoor brands like Camelbak—with the most recent for $42 per share, or about $3.2 billion. Vista said Tuesday that it plans to engage with MNC to determine whether the firm would be willing to raise its offer to match or surpass the offer from CSG.

As it considers its options, Vista postponed a shareholder meeting scheduled for today to vote on the offers to Sept. 13.

Shares were 4.4% higher at $40.55 about 30 minutes before the opening bell Tuesday and are up about 37% this year.