Camp Chef parent company, Vista Outdoor, is in high demand. It seems like every week they are receiving offers for all or parts of their business. This week is no different as they picked up an offer for the Kinetic Group (Sporting Products), and they rejected MNC Capital’s latest offer.
MNC Capital Rejection
MNC Capital made another unsolicited buyout offer last week for all of Vista Outdoor. They did it via press release, and it was coming off as contentious.
They indicated a number of things that Vista Outdoor wasn’t providing or considering. Vista responded to the latest offer with a rejection and a slide deck about why MNC’s assertions were incorrect in their latest note. Below are some highlights from the deck.
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In Vista’s opinion, it boils down to MNC undervaluing Revelyst, and not showing proof of committed financing. The debt financing they’ve secured is subject to lender diligence, so there’s no guarantee on it.
New Acquisition Offer
In addition to rejecting the MNC Capital offer, Vista Outdoor picked up another offer for their Kinetic Group. It’s for a little over $2 billion in cash from a “U.S. based private investment firm”, which the Financial Times has since revealed as Jeffrey Hildebrand and his JDH Capital family office.
According to an internal memo, with this sale proposal, like the one from CSG, Revelyst would become a public company.
The alternative party has said that it is fully supporting the purchase price and is prepared to execute definitive agreements no later than June 14, 2024. Under this scenario, Revelyst would continue its plan to become a standalone public company.
co-CEOs Eric Nyman and Jason Vanderbrink
Vista Outdoor is in a great spot, whatever they choose to do. They have no shortage of options for a path forward. Whether they go with the CSG option or the one from JDH, it should leave a good amount of capital for Camp Chef and the other Revelyst brands to drive growth.