Battle for US owner of Remington ammunition brand heats up

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A takeover battle has intensified over the US ammunition group that owns the Remington brand, as investment firm MNC Capital raised its unsolicited offer in an effort to disrupt a $2bn acquisition by a Czech defence group.

MNC, headquartered in Dallas, increased its original offer for Vista Outdoor, a maker of ammunition and outdoor products, from $37.50 to $39.50 per share, valuing the Minnesota-based company at more than $3bn.

Last month Vista had agreed to sell its ammunition business Kinetic to defence company Czechoslovak Group (CSG) for $1.96bn, improving on its agreed offer last October. Vista plans to list its outdoor products business, which includes the binocular and scope maker Bushnell, as a standalone company.

Vista last month had rejected an earlier unsolicited offer in March from MCN, for both the ammunition and outdoor businesses, arguing that the deal undervalued its outdoor products business. Vista’s chair Michael Callahan said that the MCN bid lacked “evidence of procured committed financing and is not reasonably capable of being completed”.

Privately held CSG is a leading supplier of munitions and military equipment in Ukraine and other countries. The company has recently been playing a key role in a Czech government initiative to send more shells to Kyiv as it fights Russia.

However, the deal has drawn scrutiny from lawmakers in the US over concerns of foreign ownership. 

Opponents of the deal, which include former Secretary of State Mike Pompeo and US senator JD Vance, have urged the Treasury Department to block the sale through the Committee on Foreign Investment in the United States, or Cifius, which is examining the agreement.

Vista said in May that it was confident of securing Cifius clearance and that it expected the deal to close this year.

Mark Gottfredson, managing director of MNC Capital and a former Vista board member, said on Thursday that it was “proud to represent an American alternative”.

“Our proposal provides compelling value and certainty for Vista shareholders and is in the best interests of Vista’s employees and the broader safety and security of the US,” he added.

Shares in Vista Outdoor were up 3 per cent in mid-afternoon trading.

Vista was not immediately available for comment while CSG declined to comment.