We’re approaching the shareholder vote that will determine the future of Vista Outdoor and subsequently Camp Chef. Some shareholders have come out against the sale of the Kinetic Group to CSG, and for the sale of all of Vista to MNC Capital. Vista is doing there best to lobby for the CSG sale, which they feel is better for the company.
Camp Chef Updates
To show that Revelyst will return future value to shareholders ahead of the vote, Vista Outdoor released early financial results today. They affirmed guidance for Fiscal Year 2025, with Revelyst sales of $1.240 billion to $1.300 billion and adjusted EBITDA expected to be approximately $130 million to $160 million.
For Q1 of Fiscal Year 2025 (the quarter that ended in June), sales at Revelyst are expected to decrease to a range of $272 million to $276 million. Adjusted EBITDA is expected to be in the range of $14.5 million to $16.5 million due to issues with volume from a host of reasons across their portfolio.
A bright spot for Camp Chef in the quarter was sales of the recently released Gridiron Griddle that features a unique grease trough in the front. It drove 8% growth in the flattop category.
Vista has also been working down inventory levels, which have been a concern for the whole industry for two years now. Healthy inventory is key to getting sell through and a return to normalcy for revenue.
Across the enterprise, we are making good progress on our GEAR Up transformation, where we saw $5 million in realized savings during the quarter. We significantly reduced our inventories by over $100 million year over year and continue to create an optimal portfolio through strategic M&A with the sale of the Fiber Energy business in the second quarter. The GEAR Up transformation is working to simplify our business model, increase efficiency and expand strategic opportunities that allow us to reinvest in our highest potential brands, with more progress expected in the months ahead.
Eric Nyman – Co-CEO of Vista Outdoor and CEO of Revelyst
GEAR Up that’s referenced by Eric Nyman is Vista Outdoor’s cost cutting plan to optimize their expenses on a go-forward basis. It includes activities such as consolidating their footprint and commonizing their supply chain between brands.
M&A Update
CSG has raised their offer once again by $50 million to help earn votes for the sale from shareholders. This brings their total offer for the Kinetic Group to $2.15 billion.
We are pleased that CSG has increased its purchase price for The Kinetic Group, underscoring their continued commitment to the transaction and the underlying value they see in our business. We are confident the transaction with CSG maximizes value for our stockholders and provides stockholders the opportunity to realize superior value in Revelyst when separated from The Kinetic Group. We urge stockholders to vote for the CSG Transaction, which delivers clear, compelling value and the ability to close in early August.
Michael Callahan, Chairman of the Board of Directors of Vista Outdoor
Through the CSG transaction, current Vista Outdoor shareholders would receive $24.00 per share for the Kinetic Group and a share of Revelyst stock. Whether that’s a better value than what MNC Capital is offering lies in the faith that shareholders have in Revelyst’s team to maximize the value of Revelyst. They’ve been hampered by the saga of the ongoing transaction, so it’s hard to say what they can do with their collection of brands.