10:53 AM EDT, 06/24/2024 (MT Newswires) -- Vista Outdoor ( VSTO ) said Monday its ammunition and gun business received an updated bid of $2 billion to be acquired by Czechoslovak Group after an alternative party with a higher offer pulled out of the race last week.

CSG increased its offer to $2 billion from $1.96 billion, upping the per-share consideration to $18 from $16. The Kinetic Group, which operates shooting sports brands such as Remington and Speer, entered into the amended merger agreement with CSG on Sunday.

The increased purchase price is 40% higher than CSG's original per-share cash bid of $12.90 made in October. Vista Outdoor's ( VSTO ) board reaffirmed its recommendation that stockholders vote in favor of the deal at a special meeting on July 2.

At close, Vista Outdoor ( VSTO ) shareholders will receive $18 in cash and one share of Revelyst, the company's outdoor recreation business that includes brands such as Camelbak, Fox and Camp Chef. Shares of Vista Outdoor ( VSTO ) rose 2.2% in morning trade.

Vista will return an additional roughly $77 million of excess cash to shareholders as part of the cash consideration of the CSG transaction, which it said will come in addition to the $18 per share purchase price.

Vista expects the transaction to close later in 2024, subject to shareholder approval, regulatory clearance and other customary closing conditions. It "remains confident" that CSG will receive clearance from the Committee on Foreign Investment in the U.S.

"CSG's ownership of Vista Outdoor's ( VSTO ) leading ammunition brands will provide the communities where the company operates, along with its 4,000 workers in the United States, with a steady, long-term owner that is fully committed to investing in the American workforce, American hunters and domestic and allied military and law enforcement partners," Vista Outdoor ( VSTO ) said in a statement.

Last week, an unnamed investment company withdrew its $2.01 billion offer for the Kinetic Group after another bidder whose offer was turned down by the Vista board, MNC Capital, accused it of violating contractual agreements that should have restricted its ability to bid.

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