Czech Gunmaker Colt CZ Group Makes $1.7 Billion Offer for Vista Outdoor
Colt CZ Group Offers $1.7 Billion for Vista Outdoor
Czech gunmaker Colt CZ Group has made an offer to Vista Outdoor, valuing the U.S. sporting and outdoor goods group at about $1.7 billion, according to Reuters calculations.
Vista Outdoor Considers Proposal from Colt CZ Group
Vista said in a statement it had not made any determination about the $30 per share cash and stock proposal, which is at a premium to its last closing price of around $25.75, though below a 2023 high of $33.78 hit in September.
Colt CZ Proposes to Keep Vista Outdoor Together
Colt CZ said it proposed keeping the company together, scrapping Vista’s planned sale of its sporting products business to privately held Czechoslovak Group (CSG), announced in October in a $1.91 billion deal.
Colt CZ Offers a Strategic Combination
Colt CZ said its offer of “a strategic combination” included a $900 million share buyback program that it would conduct after the transaction had closed, funded by $600 million of new equity issued at the transaction price and $300 million of debt. Vista shareholders would hold about 55% in the new company under the deal, Colt CZ said.
Vista Outdoor to Review Proposal from Colt CZ
Vista said it would review Colt CZ’s proposal but that it had not made any change in its recommendation for the CSG deal.
CSG Declines to Comment on Colt CZ Offer
CSG declined to comment on the Colt CZ offer.
Colt CZ’s Nine-Month Earnings Decline
Colt CZ said on Thursday its adjusted nine-month earnings before interest, tax, depreciation, and amortization (EBITDA) fell 17.3% year-on-year to 1.9 billion crowns ($84.8 million), as a recovery in the U.S. commercial market had been slower than expected.
Market Reaction to Colt CZ Offer
Colt CZ shares fell around 3% at the Prague open but had recovered to trade down 0.2% by 0919 GMT. ($1 = 22.4040 Czech crowns)
