Colt Makes $1.74 Billion Offer for Vista Outdoor, Gate-crashing Rival Deal
The unsolicited offer comes after Vista and the Czechoslovak Group, or CSG, announced their own deal in October
Firearms manufacturer Colt CZ Group has made an unsolicited offer to acquire U.S. -based Vista Outdoor VSTO -0.12%decrease; red down pointing triangle that values its equity at $1.74 billion, seeking to block the latter’s proposed merger with a Czech industrial technology company.
Colt has proposed a cash-and-stock merger with the sporting and outdoor-goods company that would value its shares at $30.00 each, Vista said late Wednesday.
Colt is a well-known maker of pistols, revolvers and rifles.
The unsolicited offer comes after Vista and the Czechoslovak Group, or CSG, announced their own deal in October. The companies had agreed to merge Vista’s sporting-products business with CSG in an all-cash deal valuing it at $1.9 billion on an enterprise value basis, which includes debt. The business includes brands like Remington and other ammo and firearms marques.
Vista said late Wednesday that its board of directors hasn’t made a decision on Colt’s offer, “nor has it changed its recommendation in support of the acquisition of its Sporting Products business by CSG.”
The company said that its board will carefully review Colt’s offer and remains committed to acting in the best interest of its shareholders.
In a separate statement, Colt said its offer was superior and would recapture the value that Vista has lost over the 18 months since the company said it planned to spin off its outdoor-products segment.
“It is apparent to Colt CZ that, with the separation of the sporting products segment, the remaining outdoor products segment will be subscale as a stand-alone public company with substantial risks,” the firearms maker said.