Vista Outdoor said it is expecting to confirm a higher offer from MNC Capital to acquire the company, reiterated its 2025 guidance, and announced a partnership between celebrity chef Guy Fieri and outdoor grill brand Camp Chef on its earnings call Tuesday morning for the quarter ending June 30.
“Considering the extensive (due) diligence conducted by MNC and its private equity partner to date, Vista Outdoor expects MNC to be able to confirm an increased proposal for the acquisition of Vista Outdoor in short order,” said Eric Nyman, co-CEO of Vista and CEO of Revelyst, its outdoor gear branch, on the call.
However, Vista’s board is still recommending shareholders vote in favor of the $2.15 billion offer from The Czechoslovak Group (CSG) to acquire The Kinetic Group, Vista’s ammunition arm, at a September 13 meeting, Nyman said. But he reiterated that in the meantime, the board is undertaking a strategic review of its options, including separating its ammunition and outdoor gear divisions as originally planned. Other outcomes include CSG and other partners potentially acquiring both The Kinetic Group and Revelyst, or a spin-off of just The Kinetic Group.
Read The Daily’s primer about the Vista Outdoor sale saga here.
Vista started looking at other options last week following criticism from some large shareholders, a lawsuit pertaining to the board’s unanimous support of the CSG transaction, and its preliminary financial results, which showed a steeper sales decline for Revelyst than anticipated.
Sales Decline Across All Revelyst Brand Categories
Vista confirmed those results on Monday, with Revelyst reporting $274 million in sales for the quarter. Nyman attributed the shortfall to supply chain issues and delayed product launches such as Bushnell Golf’s Phantom 3 with GPS.
Among Revelyst’s 30-plus brands and categories:
- Its adventure sports group, which includes Fox, Giro, Bell, and Camelbak, reported $127 million in sales, a 12% decline year-over-year.
- Its outdoor performance group, which includes Bushnell, Simms, and Camp Chef, reported $90 million in sales, a 16% year-over-year decline.
- Its precision sports group, which includes Foresight and Bushnell Golf, reported $57 million in sales, a 13% decline year-over-year.
But there have been some bright spots over the quarter, Nyman said. Those include:
- Increased market share in bike helmets, mountain bike protection, and bike hydration, as well as selling out of the V3SR race frames and Purevue goggles.
- A “dominant” market share of waders and fishing sportswear at Simms.
- The launch of the Camp Chef Gridiron in the spring driving 8% growth in the flat-top grill category.
- Multiple quarters of growth at golf tech brand Foresight driven largely through its DTC channel.
The Kinetic Group, Vista’s ammunition arm, reported $370 million in sales for the quarter, a 2% decline year-over-year.
Guy Fieri Signs on With Camp Chef, Vista Reaffirms Full-Year Guidance
Vista also signed its “biggest partnership ever” between celebrity chef Guy Fieri and outdoor grilling brand Camp Chef.
“Fieri has long served as an unofficial brand ambassador while using the brand’s products on-screen, onstage, and at home,” Nyman said. “This multi-year partnership will include several collaborations between Fieri and Camp Chef, and will include a number of co-branded cooking equipment pieces.”
Vista reaffirmed its full-year 2025 guidance of $2.665 billion to $2.775 billion with expected adjusted EBITDA between $410 million and $490 million.
Mike Callahan, chairman of the board at Vista, said in a statement that the board will continue working to maximize shareholder value through its strategic review, but that it currently still recommends the CSG transaction.
“We remain as committed as ever on delivering the standard of excellence to our consumers that Vista Outdoor is known for while we continue to conduct our review to uncover the optimal outcome for our stockholders,” Callahan said. “The Board continues to recommend Vista Outdoor stockholders vote in favor of the proposal to adopt the merger agreement with CSG.”
Kate Robertson can be reached at kate.robertson@emeraldx.com.
