Vista Outdoor To Split Company

[Jim12]

Vista Outdoor To Split Company​

May 5, 2022

by John Richardson 0 Comments​

Vista Outdoor, itself a spinoff from Alliant Techsystems or ATK in 2015, announced plans today to split itself into two separate publicly traded companies. One company will be devoted to the outdoor brands such as CamelBak, Camp Chef, and Bushnell while the other company will be composed of the ammunition companies including Federal, Remington, CCI, and Speer. The new names will be announced at a later date.

Chris Metz, Vista Outdoor’s current CEO, will be CEO of the new outdoor brand company which will be headquartered in Bozeman, Montana. Jason Vanderbrink, the current president of the sporting products division of Vista Outdoor, will be appointed CEO of the new ammunition-centric company upon the completion of the spinoff. That company will be headquartered in Federal’s hometown of Anoka, Minnesota.

Looking over the different brands within each division, it appears, if I understand it correctly, that both reloading and hunting products such as RCBS and Primos will remain with the outdoors products company.

From CEO Chris Metz on the decision to split into two companies:

“Over the past few years, we’ve made significant progress executing on our strategy to grow our leading portfolio of brands, driving operational efficiencies and delivering value to our shareholders,” said Chris Metz, Chief Executive Officer of Vista Outdoor. “As a result of our efforts, we have built strong businesses that are well-positioned for continued growth and success as independent companies. As a result of the separation, our Outdoor Products and Sporting Products businesses will have resources, management teams and capital allocation priorities tailored to their respective strategic goals. We are confident that this increased focus will better allow each company to deliver long-term value for its shareholders, employees, customers and other stakeholders. The Centers of Excellence we have built will reside within the Outdoor Products business and continue to provide meaningful industry differentiation.”
“Following a thorough assessment of Vista Outdoor’s businesses, operations and value creation opportunities, the Board determined that a spin-off of its Outdoor Products business would unlock significant value,” said Michael Callahan, Chairman of the Board of Directors. “We are committed to working together through this transformative process to ensure that each company is optimized with the right teams and resources in place so that it can continue to deliver innovative, quality products that enhance outdoor experiences and create value for its shareholders.”

One impact from this spinoff or split is that the sporting products component will be the only major, pure ammunition, publicly traded company in the US. Olin, which owns Winchester, is also a major industrial chemical company. Even AMMO, Inc. has other components such as gunbroker.com which are not involved in the manufacture of ammunition.

Vista Outdoor To Split Company -

Vista Outdoor, itself a spinoff from Alliant Techsystems or ATK in 2015, announced plans today to split itself into…

onlygunsandmoney.com

 

[lax]

I have had a recurring investment in Vista for a little over a year now.

 

[Jim12]

New deal: Vista is selling its Sporting products units to a private Czech firm, causing stock to crater 15+% this morning.


UPDATE 1-Vista Outdoor to sell sporting products unit in $1.91 bln deal, cuts sales forecast
8:56 AM ET, 10/16/2023 - Reuters
(Adds forecast cut, background, share movement)
Oct 16 (Reuters) - Ammunition maker Vista Outdoor said on Monday it would sell its sporting products business in a $1.91 billion deal and cut its full-year sales forecast, sending its shares tumbling 18% premarket.
The all-cash sale of the sporting products business, which includes its guns and ammunition business, to Czechoslovak Group a.s. (CSG) is expected to close next calendar year, Vista Outdoor said.
Vista Outdoor also lowered its fiscal 2024 sales forecast, citing tight consumer spending on its big-ticket discretionary goods in the face of higher interest rates.
Vista now expects sales of $2.73 billion to $2.86 billion in the year ending March 2024, down from its previous forecast of $2.85 billion to $2.95 billion.
Earlier this month, Vista Outdoor spun off its outdoor products segment, which included helmets and water bottles, into a separate publicly traded company called Revelyst as part of its previously announced plan.
CSG is a Czech-based military equipment and civilian products maker, with some of its military equipment used by Ukraine in its conflict with Russia.
CSG has been on the lookout for more acquisitions since it took a 70% stake in Italian small-calibre ammunition maker Fiocchi Munizioni last December.
It plans to take $1.11 billion of debt financing to fund the deal with Vista Outdoor. (Reporting by Juveria Tabassum; Editing by Savio D'Souza)

 

[MaxVO2]

New deal: Vista is selling its Sporting products units to a private Czech firm, causing stock to crater 15+% this morning.


UPDATE 1-Vista Outdoor to sell sporting products unit in $1.91 bln deal, cuts sales forecast
8:56 AM ET, 10/16/2023 - Reuters
(Adds forecast cut, background, share movement)
Oct 16 (Reuters) - Ammunition maker Vista Outdoor said on Monday it would sell its sporting products business in a $1.91 billion deal and cut its full-year sales forecast, sending its shares tumbling 18% premarket.
The all-cash sale of the sporting products business, which includes its guns and ammunition business, to Czechoslovak Group a.s. (CSG) is expected to close next calendar year, Vista Outdoor said.
Vista Outdoor also lowered its fiscal 2024 sales forecast, citing tight consumer spending on its big-ticket discretionary goods in the face of higher interest rates.
Vista now expects sales of $2.73 billion to $2.86 billion in the year ending March 2024, down from its previous forecast of $2.85 billion to $2.95 billion.
Earlier this month, Vista Outdoor spun off its outdoor products segment, which included helmets and water bottles, into a separate publicly traded company called Revelyst as part of its previously announced plan.
CSG is a Czech-based military equipment and civilian products maker, with some of its military equipment used by Ukraine in its conflict with Russia.
CSG has been on the lookout for more acquisitions since it took a 70% stake in Italian small-calibre ammunition maker Fiocchi Munizioni last December.
It plans to take $1.11 billion of debt financing to fund the deal with Vista Outdoor. (Reporting by Juveria Tabassum; Editing by Savio D'Souza)

****I used to have quite a bit of this stock some time back as it showed promise due to *major* increases in gun and ammunition sales after the whole George Floyd/BLM riots, etc... It looks like they are selling parts of themselves off to help manage debt and poor management decisions as well as a downturn in market forces lowering their sales projections.

I sold out some time ago at about a break even point (cost basis), but no question lost out overall as that money was essentially tied up while other sectors were just going gangbuster crazy (tech...).

Live and learn I guess.

 

[Jim12]

Wall Street loves this deal (not), exacerbated by downward guidance. Now down 24% today.

UPDATE 2-Vista Outdoor to sell sporting products unit in $1.91 bln deal, cuts sales forecast
10:58 AM ET, 10/16/2023 - Reuters
(Updates shares, adds CFO comment in paragraph 4, background in paragraphs 7-9)
Oct 16 (Reuters) - Vista Outdoor said on Monday it would sell its sporting products business in a $1.91 billion deal, although its shares tumbled about 20% in early trading after it cut its full-year sales forecast.
The all-cash sale of the sporting products unit, which includes its guns and ammunition business, to privately held Czechoslovak Group a.s. (CSG) is expected to close next calendar year, Vista Outdoor said.
The outdoor recreation and shooting sports products maker also lowered its fiscal 2024 revenue forecast, citing tight consumer spending on its big-ticket discretionary goods in the face of higher interest rates.
"The reduction in sales from our previous guidance coupled with pricing and promotional pressures across our categories is driving down profitability," said Vista's CFO Andy Keegan.
Vista now expects revenue to range between $2.73 billion and $2.86 billion for the year ending March 2024, compared with its previous forecast of $2.85 billion to $2.95 billion.
Earlier this month, Vista spun off its outdoor products segment, which includes helmets and water bottles, into a separate publicly traded company called Revelyst as part of its previously announced plan.
Vista said in a call with analysts and investors that the separation of its sporting and outdoor goods units will be formalized at the closing of its deal with CSG.
Czech-based CSG has seen its revenue and profits rise since Russia's invasion of Ukraine as demand for heavy military equipment and ammunition to ship to Ukraine soared.
It had a consolidated revenue of 25 billion Czech crowns ($1.07 billion) in 2022 and has been on the lookout for more acquisitions since it took a 70% stake in Italian small-calibre ammunition maker Fiocchi Munizioni last December.
CSG said it plans to take $1.11 billion of debt financing to fund the deal with Vista Outdoor.

($1 = 23.4040 Czech crowns) (Reporting by Juveria Tabassum, Additional reporting by Jason Hovet and Jan Lopatka in Prague; Editing by Savio D'Souza and Shweta Agarwal)

 

[Jim12]

****I used to have quite a bit of this stock some time back as it showed promise due to *major* increases in gun and ammunition sales after the whole George Floyd/BLM riots, etc... It looks like they are selling parts of themselves off to help manage debt and poor management decisions as well as a downturn in market forces lowering their sales projections.

I sold out some time ago at about a break even point (cost basis), but no question lost out overall as that money was essentially tied up while other sectors were just going gangbuster crazy (tech...).

Live and learn I guess.

It always seems to be a wild ride in gun and ammo stocks. Not sure I like the idea of CCI, Estate, Federal, Speer, and Remington being foreign-owned, even if Czech. At least it's not being sold to China.

Eta: I imagine that it will affect the industry's political influence on gun control policy, too.

 

[MaxVO2]

It always seems to be a wild ride in gun and ammo stocks. Not sure I like the idea of CCI, Estate, Federal, Speer, and Remington being foreign-owned, even if Czech. At least it's not being sold to China.

Eta: I imagine that it will affect the industry's political influence on gun control policy, too.

****Yes. Politically it does somewhat change the dynamics a bit but I am unsure if it will be net good or bad for gun owners and enthusiasts.

I have both Ruger and Smith & Wesson stock and both are a bit down today, but keep them due to dividends. Any number of other equities have performed better over the near and long term but they serve a purpose in my portfolio as a kind of bellweather for public sentiment on their feelings of safety and security. People buy more guns when they feel unsafe in their domiciles as well as when there is civil unrest and I have somewhat capitalized on this and used the stock prices as a trigger to purchase equities in other security type industries (alarm and security camera companies, etc..) that tend to lag a bit behind peoples immediate need to feel safer.

I've noticed ammo prices creeping up recently beyond inflation, perhaps due to unrest in Gaza, Ukraine, etc.. and massive purchases of ammo by government entities.

But yea, definitely a wild ride with gun and ammo stocks.

 

[adit]

It always seems to be a wild ride in gun and ammo stocks. Not sure I like the idea of CCI, Estate, Federal, Speer, and Remington being foreign-owned, even if Czech. At least it's not being sold to China.

Eta: I imagine that it will affect the industry's political influence on gun control policy, too.

Anything is better the major scumbags that own it now.

Largest shareholders include BlackRock Inc., Gates Capital Management, Inc., Vanguard Group Inc, IJR - iShares Core S&P Small-Cap ETF, Dimensional Fund Advisors Lp, Citadel Advisors Llc, State Street Corp, Cooper Creek Partners Management Llc, CALF - Pacer US Small Cap Cash Cows 100 ETF, and VTSMX - Vanguard Total Stock Market Index Fund Investor Shares

 

[Jim12]

Anything is better the major scumbags that own it now.

Not unlike nearly every public company in the U.S.

 

[FN509Fan]

It always seems to be a wild ride in gun and ammo stocks. Not sure I like the idea of CCI, Estate, Federal, Speer, and Remington being foreign-owned, even if Czech. At least it's not being sold to China.

CZ now owns Colt. Boo hoo. I question keeping multiple brands of primers CCI, Federal and Remington when they are all owned by Vista. Seems like there could be some consolidation. Not like they are fighting for shelf space in the gun stores.

 

[Inigoes]

Yellen Asked to Probe Issues in an Ammunition Maker’s Sale​

The concerns involve the sale of Vista Outdoor’s ammunition business to the holding company Czechoslovak Group, or CSG, which Higgins said would weaken national security if the Committee on Foreign Investment in the US, or Cfius, approves the sale.

The Louisiana Republican said in a letter that the sale of Vista Sporting Products to CSG would result in the firm controlling “nearly 70% of production capacity for primers in the Western world.” Primers are the component of a bullet that ignites the charge, sending the projectile down the barrel of a pistol or rifle.

See the article:

MSN