PRAGUE--(BUSINESS WIRE)--The Czechoslovak Group (“CSG”) today issued a statement reaffirming its commitment to the proposed all-cash acquisition (the “Acquisition”) of Vista Outdoor Inc.’s (NYSE: VSTO) (“Vista Outdoor”) Sporting Products business – recently renamed The Kinetic Group – for a total consideration of $1.91 billion, with fully committed financing from leading U.S. bank JP Morgan Chase. CSG also highlighted the benefits of its planned Acquisition:
“CSG is a leading industrial technology company operating across strategic business segments including defense, aerospace, ammunition and mobility. Under the leadership of current CEO and 100% owner Michal Strnad, CSG has become the pre-eminent Czech industrial group and built an extensive global footprint.
We have a demonstrated history of supporting the long-term growth of our portfolio companies. We look forward to successfully closing the Acquisition of The Kinetic Group and becoming the steward of such venerable American brands as Federal, CCI and Remington. As we have publicly stated, we intend to keep in place The Kinetic Group’s existing leadership, invest in the business and continue production in the U.S.
Additionally, we would note that we have continued to invest in the U.S. facilities we already own in Arkansas and Missouri and have increased output at those plants – allowing us to provide even more supply to our American customers.
We would also like to highlight several benefits of the planned Acquisition and details about CSG’s track record, including:
- We are a significant supplier to NATO and Ukraine and have no ties to Russia, China or other U.S. adversaries. CSG is among the top providers of artillery ammunition for NATO and recently announced that we intend to invest several hundred million dollars more in our ongoing efforts to bolster Ukraine’s defense capabilities by expanding our supply of artillery ammunition, tanks and artillery systems to the country.1 Several of our companies hold top NATO security clearances and we work with U.S. defense companies. This would not be possible if we had ties to U.S. adversaries such as Russia or China.
- We have demonstrated our commitment to manufacturing in the U.S. Through our ownership of Fiocchi Munizioni, we already have a U.S. presence, with production facilities in Little Rock, Arkansas and Ozark, Missouri. In fact, we are currently considering expanding our U.S. production capacity. Any claim that CSG has eliminated U.S. jobs is completely wrong.
- We intend to respect and maintain the production quality and supply of legacy brands that Americans have relied on for decades. CSG understands the special importance to American consumers of the brands that are part of The Kinetic Group. Our senior team includes experienced industry professionals who manage our firearms related businesses. We have demonstrated through our ownership of Fiocchi Munizioni and Armi Perazzi that we are deeply committed to providing high-quality products to customers. Our focus will be on preserving and developing the entire product portfolio of the business and maintaining the standards that customers expect.
- We are committed to supporting the regulatory review process and remain confident we will receive all necessary approvals for the Acquisition. In December of 2023, the required waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 expired, meaning the Federal Trade Commission (“FTC”) has cleared the Acquisition from an antitrust perspective. On March 28, Vista Outdoor and CSG announced that we had voluntarily withdrawn and re-filed our joint voluntary notice to the Committee on Foreign Investment in the United States ("CFIUS") to allow CFIUS additional time to conduct diligence on the proposed Acquisition. Working alongside Vista Outdoor, we are actively engaged in the process and believe we will secure all required approvals. It’s important to note that we successfully went through CFIUS screening when we acquired Fiocchi of America and its Arkansas and Missouri facilities in 2022.”
About Czechoslovak Group
Czechoslovak Group (CSG) is an international industrial technology holding company owned by Michal Strnad. CSG supports the development of Czech and Slovak companies engaged in defense and civil industrial production and trade. More than 10,000 people are employed by CSG companies and affiliates. In 2023, the holding’s preliminary 2023 consolidated revenues reached $1.85 billion. CSG operates across four strategic business segments covering aerospace, ammunition, defense, mobility and business projects.
1 “Czech Billionaire Wants to Help Ukraine Produce More Ammunition,” Bloomberg, March 6, 2024, https://www.bloomberg.com/news/articles/2024-03-06/czech-billionaire-wants-to-help-ukraine-produce-more-ammunition?sref=wCygVOlP. |