Vista Outdoor Inc. ( VSTO ) shares are trading higher premarket on Monday after the company inked a deal to sell Revelyst to Strategic Value Partners (SVP) for $1.125 billion in cash.

Additionally, Vista amended its merger agreement with Czechoslovak Group (CSG) to acquire The Kinetic Group, increasing the purchase price to $2.225 billion.

The SVP transaction is contingent on the completion of the CSG transaction.

Combined, the two deals value Vista Outdoor ( VSTO ) at $3.35 billion and are expected to deliver approximately $45 per share in cash to Vista Outdoor ( VSTO ) stockholders.

Vista Outdoor’s Board has unanimously approved the SVP transaction, expected to close by January 2025, contingent on completing the CSG transaction, regulatory approvals, and standard conditions.

Vista and CSG have received all required regulatory approvals and are set to close by year-end 2024, pending stockholder approval.

Both parties agreed to extend the termination date of the CSG merger agreement to December 11, 2024.

At closure, CSG will pay $2.225 billion, with potential price adjustments, and Vista Outdoor ( VSTO ) stockholders will receive $25.75 in cash per share, plus one share of Revelyst common stock for each Vista Outdoor ( VSTO ) share.

After the SVP transaction closes, SVP will pay Revelyst stockholders a total of $1.125 billion, subject to net cash adjustments, estimated at $19.25 per Revelyst share based on current net cash estimates at the time of closing.

As part of the SVP and CSG transactions, Vista Outdoor ( VSTO ), CSG, and SVP have agreed to amend the existing separation agreement related to the split of The Kinetic Group and Revelyst.

Additionally, CSG will no longer invest in Revelyst upon the closing of the CSG transaction. As of June 30, Vista Outdoor ( VSTO ) had net debt of $579 million.

Investors can gain exposure to the VSTO via VictoryShares Small Cap Free Cash Flow ETF ( SFLO ) and EA Bridgeway Omni Small-Cap Value ETF ( BSVO ) .

Price Action: VSTO shares are up 9.19% at $43.50 premarket at the last check Monday.

Image via Shutterstock

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