Federal Intervention Looms Over Explosive Ammo Company Sale Drama! | Guns & Gadgets 2nd Amendment News
Summary
Transcript
Hey, hey everybody. Welcome back to another episode of Guns and Gadgets. It’s just too beautiful outside. Springtime. I don’t want to be down in the studio. I want to do this outside. So hopefully you’ll enjoy the, the birds in the background. I wanted to do a video updating us on the sale or the potential sale of Vista outdoor, the ammo side that I started to tell you about last fall because there’s been an interesting snafu, perhaps potentially, and another company has stepped up offering a billion dollars plus more than the original agreement by the original potential purchaser.
This is shaking out to be something we need to watch. First I want to thank the sponsor of the video. That’s CMMG. They just launched their brand new descent in 45. Check it out. You know where to find them. And if you buy a tool from CMMG, american made tool in Missouri, no matter the length of your tool, the color of your tool or even the chambering of your tool, you can save huge with code gng ten.
Tell everybody I said hi when you’re talking to them. CMMG, great folks over there, they put their, the owners put their money, their own money into suing the ATF, which is another reason to support CMMG, at least in my book. So let’s get it back into this sale or the perhaps potential sale of Vista outdoors in their ammo side. I’m gonna show you this here on the screen to refresh your memory, said Vista Outdoor, the parent company of 41 renowned brands that design, manufacture and market sporting and outdoor products to consumers around the globe, announced a definitive agreement to sell its sporting products business to Czechoslovak Group, or CSG, on October 1.
The value of the all cash transaction was $1. 9 billion and includes ownership transfer of some of the industry’s biggest names in ammunition, including federal CCI, Remington Ammo, Speer, heavy shot. Now if you remember following this story, not too long after they came to an agreement with Czechoslovak Group, which is a czech company overseas, another offer was made and I did a video on that as well. This might spark your memory.
Its Colt CZ group makes a $1. 74 billion unsolicited offer to acquire Vista Outdoor. Now Colt CZ Group. Ultimately their bid was denied and Vista was moving forward with the czechoslovak group bid of $1. 91 billion. However, anytime american assets, which could potentially elicit national security concerns like ammunition and primers and propellant, anytime that another foreign company would be looking to take control of that asset, the government needs to get involved and to basically sign off on that potential purchase.
And the government hasn’t done that yet. The government just really started their look see back in February and they said it would be about 45 days before they would come to their or you’d get their response, their report. But they could, you know, postpone that another 60 days. And that led to what I’m going to show you another bid by another company to buy Vista outdoors, but not just the ammo side, the entire company to include the outdoor products.
Well, and that’s where this is getting interesting, because if this happens, these products will stay in America. This offer to purchase them is from MNC Capital Partners, which is a Dallas based company. What’s interesting here is that the CEO of this company, Mark Gottfridsen, used to be on the board at Vista Outdoors. And here is his letter to the board of directors at Vista says, Dear Michael, we are writing to express our strong interest in acquiring all of the outstanding shares of Vista Outdoor Inc.
Vista or the company for a purchase price per share of $35 in cash. That would be a $2. 9 billion transaction. This proposed transaction is materially superior to the October 1623 publicly announced sale of the company’s sporting products division, the Kinetic Group, to Czechoslovak Group, and the separation of the company’s outdoor products division, Revelist Inc. Into a public company. The transaction would allow the sporting products business and its critical national security assets to remain under us ownership and would create value, certainty and enhanced sponsorship for the outdoor products business.
The proposed price offers a substantial premium to Vista’s share price, which already reflects a takeover premium. Given Vista’s share price is currently trading close to its 52 week high. Our proposal also reflects a highly attractive value overall to Vista’s shareholders. Key considerations of our proposal all cash acquisition for 100% of the company, no regulatory risk, and no committee on Foreign Investment in the United States Review. That’s the government review I talked about.
Unlike the current proposed transaction for the sporting products business, the sporting products business is a national asset, evidenced by its significant ammunition and primer manufacturing capabilities and its role in refilling the US Defense Department and local law enforcement stockpiles. These capabilities are even more important today, given us ammunition shortages and increasing demand from us and NATO allies abroad. The transaction would allow the business to stay american owned, with a long term us owner who is aligned with the interests of America’s national security and consumers, and no need for CFI Us review.
As you are aware, this view has been publicly expressed by public officials, including a former United States secretary of state. We are proud to represent an american alternative to the currently contemplated sale to a foreign entity. So that was a $35 per share cash price which would value. The cost of the takeover would be $2. 9 billion for the entire company. Now that happened in February and at the end of February Vista outdoors declined their offer saying that it didn’t value the outdoor product public company.
That would happen after the sale of the ammo side. It didn’t value that enough. So to show how serious they are, MNC Capital just made another bid to Vista and increased its purchase price to $37. 50 a share or $3 billion. Lawnmower there. Helicopter there. Sorry, but they updated these numbers based off of the 2023 financial numbers. Vista’s numbers came in and the earnings showed that the ammunition sales were $1.
8 billion and the outdoor sales were 1. 3 billion. Thus the offer was increased by MNC to $3 billion. Now the czechoslovak group is saying, wait a second, it took us seven months to get this federal overload approval when we bought Fiocchi and we’re confident that it would happen again. To that MNC has said, look, we can’t have foreign entities, specifically a company in Prague control a majority of the West’s ammunition, primers and propellant.
So it has a new offer on the table of $3 billion for the entire company and no federal review. Or they’re gonna, maybe they may decide to stick with the overseas $1. 91 billion offer and continue down this road through the federal review. And the federal review could either approve the sale or deny the sale, which would send Vista back to the drawing board, which would probably lower their purchase price to a good business looking to acquire them because it would put them in a position where they might be a little desperate.
So let me know what you think down below. Should I know the answer to this? But I’m gonna ask it anyway. Should american ammunition remain under american ownership? And I’m sorry for the entire neighborhood is getting their lawn done right now. It’s amazing. And there’s another helicopter coming. I appreciate each and every single one of you. If you haven’t seen my Tulsi Gabbard video, check it out. From yesterday, over 7800 comments have been received on that video and on the social media platforms where I post.
And let’s just say that people are taking notice and Tulsi Gabbard may I’ll find out if she accepts an offer to come on. Guns and gadgets. I appreciate y’all subscribe to the channel down below so you don’t miss that. If that does happen, subscribe right there. Big red button. It’s free. Doesn’t cost you anything, just helps the channel out. Tells YouTube to back up off me with the censorship and stuff and the shadow banning.
And I appreciate you. Hopefully Vista stays american owned and we don’t have foreign entities controlling the ammunition in America at a time where it looks like Americans are going to need ammunition one way or another. Be safe. Stay vigilant. Carry a gun to keep you, your friends, your family, your community safe. We are our own first responders. We don’t get our rights from government. Yeah. Take care, y’all.
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