CSG Urges Vista Outdoor Stockholders to Vote for its $2.15 Billion Acquisition of The Kinetic Group and $150 Million Investment in Revelyst
October 9th Special Meeting is Last Possible Date for Vista Outdoor Stockholders to Vote to Approve CSG Merger Agreement Ahead of October 15th Termination Date; CSG Will Not Agree to Any Further Adjournment of Special Meeting
CSG Continues to Engage with Private Equity Firm to Reach Mutually Acceptable Agreement Regarding Potential Sale of Revelyst; Cautions that Notable Challenges Remain
Czechoslovak Group ("CSG" or the "Company"), a leading global industrial holding company, today reaffirmed its commitment to successfully completing the transaction with Vista Outdoor Inc. (NYSE:VSTO) ("Vista Outdoor") to acquire The Kinetic Group for $2.15 billion and invest $150 million in Revelyst (the "CSG Transaction").
CSG urges all Vista Outdoor stockholders to vote in favor of the CSG Transaction at Vista Outdoor's October 9th special meeting. CSG will not agree to any further adjournment of the Vista Outdoor special meeting and reiterates that October 9th is the last possible date for Vista Outdoor to hold its special meeting of stockholders ahead of the October 15th termination date in the merger agreement.
Michal Strnad, Chief Executive Officer and the owner of CSG, commented, "We are committed to executing our fully financed transaction with Vista Outdoor, which we believe maximizes value for Vista Outdoor stockholders. With the October 15th termination date for the transaction fast approaching, the upcoming October 9th special meeting will be the last and final opportunity for Vista Outdoor stockholders to vote to receive $2.15 billion in cash value for The Kinetic Group and shares of Revelyst – in which CSG has committed to invest $150 million for a 7.5% stake."
CSG has been in active dialogue with Vista Outdoor and the private equity firm partnered with MNC Capital (the "Private Equity Firm"), regarding a potential sale of Revelyst, separate and apart from MNC. CSG notes that the Private Equity Firm's most recent proposal to acquire Revelyst would require CSG to amend the terms of its agreement with Vista Outdoor in a manner adverse to CSG. CSG will continue its discussions with the Private Equity Firm; however, there is no certainty any such agreement will be reached or that CSG would agree to the terms the Private Equity Firm is seeking to impose on CSG.
Strnad continued, "We remain open minded and are working in good faith with the Private Equity Firm and Vista Outdoor to see if a mutually beneficial outcome can be achieved; however, we continue to have serious concerns with the Private Equity Firm's latest proposal. While we will continue to engage with the Private Equity Firm, there remain notable challenges that need to be overcome."
About CSG
The global industrial and technological group CSG, owned by Czech entrepreneur Michal Strnad, has key production facilities in the Czech Republic, Slovakia, Spain, Italy, India, the UK, and the U.S. and exports its products worldwide. CSG is continuously investing into the development of its companies while expanding in its core business areas. The Group includes, for example, the Czech truck manufacturer Tatra Trucks, the world's leading manufacturer of small caliber ammunition Fiocchi, and the Czech radar manufacturer Eldis. More than 10,000 employees work in the companies included in the CSG group and in their associated companies. In 2023, the Group's consolidated sales reached USD 1.73 billion. CSG's main fields of activity are the engineering, automotive, rail, aerospace, and defense industries and small caliber ammunition production. CSG's products can be found on all continents thanks to its strong export orientation.
CSG´s companies in Europe are major suppliers of tanks, artillery systems and high caliber ammunition for Ukraine which is co-financed also by the U.S. and other NATO member states.
J.P. Morgan is acting as sole financial adviser to CSG with Clifford Chance LLP acting as legal adviser.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240924599855/en/