Vista Outdoor and Czechoslovak Group (CSG) have announced that the Committee on Foreign Investment in the United States (CFIUS) has cleared CSG’s proposed acquisition of Vista Outdoor’s The Kinetic Group business, which includes Federal Ammunition, Remington Ammunition, Speer, CCI, Alliant Powder, Hevi•Shot and Estate Cartridge. Written notice from CFIUS states it has concluded its review and investigation of the transaction, and determined that there are no unresolved national security concerns. The finding was the final regulatory approval required under the merger agreement.
“We are very pleased that CFIUS has carefully vetted the transaction and, as we expected, determined that there are no unresolved national security concerns,” said Michael Callahan, chairman of the Board of Directors at Vista Outdoor.
CFIUS is an interagency committee of the U.S. government authorized to review certain transactions involving foreign investment in the United States to determine their effect, if any, on U.S. national security.
“The CFIUS process involved a thorough review and investigation of the transaction by numerous U.S. Government departments and agencies with a range of national security and other mandates,” Callahan said. “We believe the end result supports our view that CSG—which has deep expertise in supply chain excellence and ammunition manufacturing and strong support for NATO and allied nations—will be an excellent owner of The Kinetic Group. CSG is fully committed to supporting our American workforce, American hunters and domestic and allied military and law enforcement partners.”
The closing of the transaction remains subject to receipt of the approval of Vista Outdoor’s stockholders and other customary closing conditions. The special meeting of Vista Outdoor stockholders to, among other things, consider and vote on a proposal to adopt the merger agreement with CSG is scheduled to be held virtually on July 2, at 9:00 a.m., Central Time.
The Vista Outdoor Board of Directors continues to recommend Vista Outdoor stockholders vote in favor of the proposal to adopt the merger agreement with CSG. The board expressed confidence that the transaction will maximize value for stockholders, detailed in a press release.
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