News| Industry News

By Drew Bryant
October 17th, 2023,

Correction to article at 14:56 pm on 10/17/23. In the second paragraph, it was originally stated that CSG brought out Colt in 2021. That is incorrect it was bought out by CZ Group, another Czech company. In the course of doing my research, I confused the two companies and edits will be made to indicate that article correction.

In a stunning deal, American outdoor conglomerate Vista Outdoor sold its ammunition companies to the privately owned Czechoslovak Group (CSG), in a deal worth $1.91 billion. In the staggering deal, CSG will be acquiring four factories and its ammunition brands, which are Federal, Speer, CCI, Hevi-Shot, and Remington. Vista Outdoor is restructuring the company and shedding its shooting sports businesses. The morning for Vista was already turbulent on the NYSE when the company announced a cut in its sales forecast for the entire year; shares tumbled about 20%.

Over the past few years, CSG has been looking to gain more market share in the defense and firearms market. CSG is described by investors as “a leading industrial technology holding company, operating within five strategic business segments, including defense, aerospace, ammunition, mobility and business.” Czech Billionaire Michal Strnad solely owns the company.

Vista Outdoor is conducting a massive company restructuring and streamlining its business operations. The Outdoor Products unit containing brands such as Giro, Bell, Fox Racing, Camelback, and more will be spun off into a standalone publicly traded business after the completed sale of ammunition companies to CSG. The Outdoor Products Unit will be headquartered in Bozeman, Montana, renamed Revelyst, and trade under the NYSE under the “gear” symbol.

In the planned sale, Vista Outdoor will separate its Outdoor Products business from its Sporting Products business, and from there, CSG will merge one of its subsidiaries with Vista Outdoor. The stockholders of Vista Outdoor will receive shares of Outdoor Products(Revelyst) and approximately $750 million in cash in the aggregate.

Recently, Vista Outdoor gave a preview of the following quarterly financial report, which will be announced on November 2nd. Its quarterly revenues are down from last year’s period, between $325 million to $330 million. The company said the decline “was driven by decreased buying across all business units as channel partners continue to be cautious with purchasing due to inventory levels and as consumers are pressured by high-interest rates and other short-term factors, partially offset by inorganic sales contribution.”

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