The Czechoslovak Group Highlights the Benefits of Its Planned Acquisition of Vista Outdoor’s Sporting Products Business, The Kinetic Group
April 08 2024 - 8:00AM
Business Wire
Reiterates that Definitive Merger Agreement For
All-Cash Acquisition Includes Fully Committed Financing Backed by
Leading U.S. Bank JP Morgan Chase
Emphasizes that CSG is a Significant Supplier
to NATO, Has Several Companies with Top NATO Security Clearance and
Works with Leading U.S. Defense Companies
Notes that CSG Operates Ammunition Production
Facilities in Arkansas and Missouri Acquired in a Transaction
Approved by CFIUS in 2022
CSG-Vista Outdoor Transaction Has Already
Received Antitrust Clearance from the FTC
The Czechoslovak Group (“CSG”) today issued a statement
reaffirming its commitment to the proposed all-cash acquisition
(the “Acquisition”) of Vista Outdoor Inc.’s (NYSE: VSTO) (“Vista
Outdoor”) Sporting Products business – recently renamed The Kinetic
Group – for a total consideration of $1.91 billion, with fully
committed financing from leading U.S. bank JP Morgan Chase. CSG
also highlighted the benefits of its planned Acquisition:
“CSG is a leading industrial technology company operating across
strategic business segments including defense, aerospace,
ammunition and mobility. Under the leadership of current CEO and
100% owner Michal Strnad, CSG has become the pre-eminent Czech
industrial group and built an extensive global footprint.
We have a demonstrated history of supporting the long-term
growth of our portfolio companies. We look forward to successfully
closing the Acquisition of The Kinetic Group and becoming the
steward of such venerable American brands as Federal, CCI and
Remington. As we have publicly stated, we intend to keep in place
The Kinetic Group’s existing leadership, invest in the business and
continue production in the U.S.
Additionally, we would note that we have continued to invest in
the U.S. facilities we already own in Arkansas and Missouri and
have increased output at those plants – allowing us to provide even
more supply to our American customers.
We would also like to highlight several benefits of the planned
Acquisition and details about CSG’s track record, including:
- We are a significant supplier to NATO and Ukraine and have
no ties to Russia, China or other U.S. adversaries. CSG is
among the top providers of artillery ammunition for NATO and
recently announced that we intend to invest several hundred million
dollars more in our ongoing efforts to bolster Ukraine’s defense
capabilities by expanding our supply of artillery ammunition, tanks
and artillery systems to the country.1 Several of our companies
hold top NATO security clearances and we work with U.S. defense
companies. This would not be possible if we had ties to U.S.
adversaries such as Russia or China.
- We have demonstrated our commitment to manufacturing in the
U.S. Through our ownership of Fiocchi Munizioni, we already
have a U.S. presence, with production facilities in Little Rock,
Arkansas and Ozark, Missouri. In fact, we are currently considering
expanding our U.S. production capacity. Any claim that CSG has
eliminated U.S. jobs is completely wrong.
- We intend to respect and maintain the production quality and
supply of legacy brands that Americans have relied on for
decades. CSG understands the special importance to American
consumers of the brands that are part of The Kinetic Group. Our
senior team includes experienced industry professionals who manage
our firearms related businesses. We have demonstrated through our
ownership of Fiocchi Munizioni and Armi Perazzi that we are deeply
committed to providing high-quality products to customers. Our
focus will be on preserving and developing the entire product
portfolio of the business and maintaining the standards that
customers expect.
- We are committed to supporting the regulatory review process
and remain confident we will receive all necessary approvals for
the Acquisition. In December of 2023, the required waiting
period under the Hart-Scott-Rodino Antitrust Improvements Act of
1976 expired, meaning the Federal Trade Commission (“FTC”) has
cleared the Acquisition from an antitrust perspective. On March 28,
Vista Outdoor and CSG announced that we had voluntarily withdrawn
and re-filed our joint voluntary notice to the Committee on Foreign
Investment in the United States ("CFIUS") to allow CFIUS additional
time to conduct diligence on the proposed Acquisition. Working
alongside Vista Outdoor, we are actively engaged in the process and
believe we will secure all required approvals. It’s important to
note that we successfully went through CFIUS screening when we
acquired Fiocchi of America and its Arkansas and Missouri
facilities in 2022.”
About Czechoslovak Group
Czechoslovak Group (CSG) is an international industrial
technology holding company owned by Michal Strnad. CSG supports the
development of Czech and Slovak companies engaged in defense and
civil industrial production and trade. More than 10,000 people are
employed by CSG companies and affiliates. In 2023, the holding’s
preliminary 2023 consolidated revenues reached $1.85 billion. CSG
operates across four strategic business segments covering
aerospace, ammunition, defense, mobility and business projects.
1 “Czech Billionaire Wants to Help Ukraine
Produce More Ammunition,” Bloomberg, March 6, 2024,
https://www.bloomberg.com/news/articles/2024-03-06/czech-billionaire-wants-to-help-ukraine-produce-more-ammunition?sref=wCygVOlP.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240408259232/en/
Andrej Čírtek, Spokesperson Mobile: +420 602 494 208
Email: andrej.cirtek@czechoslovakgroup.cz
Or
Dan Zacchei / Joe Germani Longacre Square Partners
dzacchei@longacresquare.com / JGermani@longacresquare.com
Vista Outdoor (NYSE:VSTO)
Historical Stock Chart
From Apr 2024 to May 2024
Vista Outdoor (NYSE:VSTO)
Historical Stock Chart
From May 2023 to May 2024