Vista Outdoor Announces $1.91 Billion Sale of Sporting Products Unit and Slashes Sales Forecast; Stocks plummet 20%
17 Outubro 2023 - 9:34AM
IH Market News
Ammunition manufacturer Vista Outdoor (NYSE:VSTO) announced on
Monday its intention to sell its sporting products business in a
$1.91 billion transaction and revised its full-year sales
projection, causing its premarket shares to plummet by 18%.
The sale of the sporting products business, encompassing its
firearms and ammunition operations, will be an all-cash deal with
Czechoslovak Group a.s. (CSG) and is anticipated to be finalized in
the upcoming calendar year, according to Vista Outdoor.
Furthermore, Vista Outdoor has downgraded its fiscal 2024 sales
forecast, attributing it to restrained consumer spending on its
high-ticket discretionary products in response to higher interest
rates. The company now anticipates sales ranging from $2.73 billion
to $2.86 billion for the year ending in March 2024, down from its
prior projection of $2.85 billion to $2.95 billion.
Earlier this month, Vista Outdoor spun off its outdoor products
division, which included items like helmets and water bottles,
creating a distinct publicly traded entity named Revelyst, as part
of a previously disclosed plan.
CSG is a Czech-based manufacturer of military equipment and
civilian products, with some of its military gear used by Ukraine
in its conflict with Russia. CSG has been actively seeking
additional acquisitions since it acquired a 70% stake in Italian
small-caliber ammunition maker Fiocchi Munizioni in December of the
previous year. To finance the Vista Outdoor deal, CSG intends to
secure $1.11 billion in debt financing.
Vista Outdoor (NYSE:VSTO)
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