HomeGrill ManufacturersCamp Chef Parent Rejects MNC Capital Takeover Offer, CSG Ups Theirs

Camp Chef Parent Rejects MNC Capital Takeover Offer, CSG Ups Theirs

For a second time Camp Chef’s parent company, Vista Outdoor, has rejected MNC Capital’s unsolicited takeover offer. Vista had provided non-public information recently to MNC in an effort to receive an increased effort, but it proved unsuccessful.

After careful review with our financial and legal advisors and deliberation, the Board determined that the transaction contemplated by MNC’s indication of interest significantly undervalues the Company. Despite engaging with representatives of MNC over the past month, including by providing substantial non-public information under a non-disclosure agreement, we have not received an improved economic proposal or committed financing. We take our fiduciary responsibilities seriously and do not believe that the transaction contemplated by MNC’s indication of interest is in the best interest of our stockholders.

Michael Callahan, Chairman of the Board, Vista Outdoor

The rejected boiled down to the same two reasons as previously. In Vista’s opinion, the offer didn’t value their Revelyst brands (Outdoor Products) appropriately, and they didn’t show enough evidence of money lined-up to pay for the deal.

Revelyst has been driving their GEAR Up strategy which is meant to decrease run-rate costs going forward. It’s focused on initiatives like consolidating and optimizing their supply chain to best take advantage of a portfolio of brands.

Updated CSG Offer

With MNC Capital out of the picture once again, it keeps Vista on track to split their company in two, take Revelyst public, and sell their Sporting Products division to Czechoslovak Group (CSG). The sale will be for more money too because it was announced today that CSG increased their offer by $50 million.

Revelyst Uses of Cash Post Close
Revelyst Uses of Cash Post Close

Whether the sale of the Sporting Products division to CSG is good for those brands or not is a topic for a different publication. What’s nice about Revelyst staying with their plan to go public is the excess cash generated by the sale.

In their most recent earnings call they noted that after debt paydown they plan to invest in organic growth and have a $250 million war chest for acquisitions. We’re hoping both of those initiatives are to the benefit of Camp Chef, which is a great brand that we’d like to see continue to grow.

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