VSTO News & Events

The U.S. Supreme Court indicated it will likely dismiss a lawsuit filed by the Mexican government against gun manufacturers, including Smith & Wesson Brands (SWBI), over allegations of aiding the flow of firearms to the country's violent drug cartels, Bloomberg's Greg Stohr reports. During Tuesday's arguments in Washington, justices across the ideological spectrum signaled they may reinforce the industry's liability protections by interpreting a 2005 federal law as blocking Mexico's lawsuit, with Justice Ketanji Brown Jackson saying the 2005 law was in part "about Congress protecting its own prerogative to be the one to regulate this industry." She said the Mexico lawsuit risked "running up against the very concerns that motivated this statute to begin with." Other companies in the gun space include Sturm, Ruger (RGR), American Outdoor (AOUT), and Vista Outdoor (VSTO).

Vista Outdoor announced that its stockholders voted to approve the sale of The Kinetic Group to Czechoslovak Group a.s. at its special meeting of stockholders held earlier Monday. Vista Outdoor and CSG have received all regulatory approvals required under the merger agreement for the CSG Transaction and intend to close the CSG Transaction on November 27, 2024. Under the terms of the CSG Transaction, Vista Outdoor stockholders will receive $25.75 in cash and one share of Revelyst common stock for each share of Vista Outdoor common stock they hold. "We are thrilled to have received overwhelming support from our stockholders for the compelling transaction with CSG," said Michael Callahan, Chairman of the Vista Outdoor Board of Directors. "The CSG transaction maximizes value for our stockholders, while also providing an ideal home for our leading ammunition brands and significant opportunities for our employees." Based on the vote count from the special meeting of stockholders, approximately 97.89% of votes cast were in favor of the CSG Transaction, representing approximately 82.57% of all outstanding shares. The final voting results will be reported in a Form 8-K filed with the U.S. Securities and Exchange Commission.

The company states: "Vista Outdoor (VSTO) announced that both leading independent proxy advisory firms Institutional Shareholder Services and Glass Lewis & Co.have updated their reports to recommend Vista Outdoor stockholders vote "FOR" the transaction with Czechoslovak Group a.s. to acquire The Kinetic Group for $2.225 billion. The CSG Transaction will deliver to Vista Outdoor stockholders $25.75 in cash and one share of Revelyst common stock for each share of Vista Outdoor common stock they hold. Following the closing of the CSG Transaction, Revelyst will begin trading on the New York Stock Exchange under the ticker "GEAR". Subject to the receipt of necessary regulatory approvals and satisfaction of other customary closing conditions, funds managed by Strategic Value Partners, LLC will subsequently acquire Revelyst in an all-cash transaction based on an enterprise value of $1.125 billion). The SVP Transaction is expected to close by January 2025. Together, the CSG Transaction and the SVP Transaction represent an enterprise value of $3.35 billion for Vista Outdoor and will deliver an estimated $45 per share in cash to Vista Outdoor stockholders."