On October 1, Vista Outdoor, the parent company of 41 famous brands that design, manufacture, and distribute sporting and outdoor items to consumers worldwide, signed a definitive agreement to sell its Sporting items business to Czechoslovak Group (CSG). The all-cash transaction is worth $1.91 billion and includes the ownership transfer of some of the ammunition industry’s greatest names, including Federal, CCI, Remington Ammo, Speer, and Hevi-Shot.
“This is an important strategic step for our company in creating value through separating our Outdoor Products and Sporting Products segments,” said Gary McArthur, interim CEO of Vista Outdoor. “The previously announced plan to separate our businesses has positioned us to execute seamlessly on this transaction, which we believe is the best path to maximize value for our stockholders, while better positioning Sporting Products and Outdoor Products for future success.”
CSG is a prominent industrial technology holding firm that operates across five strategic business segments: defense, aerospace, ammunition, mobility, and business. Michal Strnad owns and leads CSG, which he has converted into a prominent Czech industrial business with a large international footprint. CSG employs over 10,000 people globally and owns and operates a varied portfolio of industrial and trading firms in the defense and civilian sectors.
“We are confident that CSG is a great home for our leading ammunition brands,” said Jason Vanderbrink, CEO of Vista Outdoor Sporting Products. “The company is fully committed to our iconic American brands and expanding our legacy of U.S. manufacturing, support for military and law enforcement customers, and investments in conservation and our hunting and shooting heritage. We are excited to work closely with the CSG team as we enter this next phase and position our brands for long-term success.”
Vanderbrink will remain CEO of the Sporting Products division after the transaction is completed, and the US headquarters will stay in Anoka, Minnesota. In line with the purchase, the company’s approximately 4,000 employees, who work in four factories and represent the consumer brands CCI, Federal, HEVI-Shot, Remington, and Speer, will continue to support community and conservation organizations through local and national organizations.
“Jason and the Sporting Products leadership team have a strong heritage of delivering high quality products, and we are pleased to welcome them to the CSG family of companies as we partner to support their next chapter,” said Strnad, CEO of CSG. “We look forward to building on the company’s success in delivering innovative, quality products and are confident in the long-term value we can create together. We are committed to expanding their legacy of U.S. manufacturing and providing resources to accelerate their growth.”