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Camp Chef’s parent company, Vista Outdoor, has rejected an unsolicited buyout offer for $2.9 billion from MNC Capital. Instead, they’ll continue on their current course of selling their Sporting Products business and taking their Outdoor Products business (known as Revelyst and where Camp Chef sits) public.
The Vista Outdoor Board said that rejecting the offer and continuing their plan would drive the greatest value for their stockholders. Given Revelyst’s growth plans and where it is in recovering from the drop after the pandemic fueled pull-forward, they believe the takeover offer undervalues the business.
Following careful review with our experienced team of financial and legal advisors, the Board determined that the transaction contemplated by MNC Capital’s indication of interest significantly undervalues the Company and is not in the best interest of our stockholders. In particular, the indication of interest significantly undervalues the Revelyst business, which we expect to double standalone adjusted EBITDA in FY25 and achieve mid-teens adjusted EBITDA margin in the long term.1 The indication also lacks evidence of procured committed financing and is not reasonably capable of being completed. We take our fiduciary responsibilities seriously and are always open to opportunities that maximize stockholder value.
Michael Callahan, Chairman of the Board of Directors at Vista Outdoor
Beyond undervaluing the business, Vista Outdoor also had concerns about MNC’s ability to execute on the transaction. They noted that MNC has provided no evidence that they have committed financing.
MNC also made proposals to buy the Sporting Products business in September and October of 2023, but never delivered debt commitment letters. Their current offer for all of Vista Outdoor would be funded with $1.5 billion of equity and $1.4 billion of debt.
We continue to firmly believe that our pending transaction with CSG and the separation of Revelyst as a standalone public company will drive significantly greater value for our stockholders. CSG is fully committed to Sporting Products’ iconic American brands and expanding our legacy of U.S. manufacturing, support for military and law enforcement customers, and investments in conservation and our hunting and shooting heritage. At the same time, Revelyst is poised to leverage meticulous craftsmanship and cross-collaboration across its portfolio of category-defining brands as a standalone public company. We are confident that this is the best path to unlock value for our stockholders.
Michael Callahan, Chairman of the Board of Directors at Vista Outdoor