Vista Outdoor rejects $2.9bn takeover offer from MNC Capital

Vista Outdoor said on Monday that it had rejected a $2.9bn takeover offer from MNC Capital as it undervalues the business.

NMC made an offer of $35 per share in cash on 19 February. However, Vista said it continues to recommend the proposed acquisition of its sporting products business by Czechoslovak Group (CSG) and "remains committed to the strategy of standing up the Outdoor Products business (Revelyst) as a standalone public company to drive the greatest value for our stockholders".

The acquisition of the sporting products business is expected to close in calendar year 2024, subject to the shareholder and regulatory approvals.

Chairman of the board Michael Callahan said: "Following careful review with our experienced team of financial and legal advisors, 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 our stockholders.

"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 EBITDA 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 maximize stockholder value."