Remains Committed to Supporting the Best
Outcome for All Vista Shareholders
Encourages Vista to Negotiate an
All-Cash Transaction for the Entire Company Given Fully-Taxable
Nature of CSG Proposal as well as the Execution Risk in Achieving
Revelyst Projections and the Reduced Scale of the Remaining
Revelyst
NEW
YORK, Sept. 24, 2024 /PRNewswire/ -- Gates
Capital Management, Inc. ("Gates Capital Management" or "we"), an
event-driven alternative asset manager that beneficially owns
5,589,041 shares of common stock, or approximately 9.6%, of Vista
Outdoor, Inc. ("Vista" or the "Company") (NYSE: VSTO), today issued
a statement encouraging Vista to finalize negotiations for an
all-cash offer for the Company and reiterating its intention to
vote AGAINST the proposed sale of The Kinetic Group to the
Czechoslovak Group a.s. ("CSG").
The full statement follows:
On Friday, September 20, 2024,
leading independent proxy advisory firm Institutional Shareholder
Services ("ISS") recommended that shareholders vote AGAINST the
latest CSG proposal. We agree with the ISS recommendation and
support its view that the best outcome for shareholders would be
attained by selling both The Kinetic Group and Revelyst in a
revised all-cash transaction.
Recent public disclosures indicate that a private equity firm
has recently offered $1.1 billion in
cash for Revelyst, but that such a transaction would need to
take place sooner rather than later since the firm would not have
any interest in purchasing Revelyst after the closing of the
currently proposed CSG transaction. We strongly believe that
the currently proposed transaction with CSG to sell only The
Kinetic Group is not in the best interest of shareholders as it
would eliminate the possibility of subsequently selling Revelyst to
this private equity firm. For this reason, we see no reason
to support any transaction that doesn't include a comprehensive
sale of the entire Company.
As shown in the chart below, the current CSG proposal delivers
the least amount of cash to existing Vista shareholders and is the
only proposal that exposes Vista shareholders to the execution
risks associated with a standalone, sub-scale, publicly traded
Revelyst.
Accordingly, we encourage Vista to finalize negotiations for an
all-cash offer for the Company for the benefit of all Vista
shareholders.
About Gates Capital Management
Gates Capital Management is an event-driven alternative asset
manager for institutional and private clients globally. Gates
Capital was founded in 1996 and today has more than $2 billion in assets under management.
Further information is available at www.gatescap.com.
Cautionary Statement Regarding Forward-Looking
Statements
This press release does not constitute an offer to sell or
solicitation of an offer to buy any of the securities described
herein in any state to any person. The information herein contains
"forward-looking statements". Specific forward-looking statements
can be identified by the fact that they do not relate strictly to
historical or current facts and include, without limitation, words
such as "may," "will," "expects," "believes," "anticipates,"
"plans," "estimates," "projects," "potential," "targets,"
"forecasts," "seeks," "could," "should" or the negative of such
terms or other variations on such terms or comparable terminology.
Similarly, statements that describe our objectives, plans or goals
are forward-looking. Forward-looking statements are subject to
various risks and uncertainties and assumptions. There can be no
assurance that any idea or assumption herein is, or will be proven,
correct or that any of the objectives, plans or goals stated herein
will ultimately be undertaken or achieved. If one or more of such
risks or uncertainties materialize, or if Gates Capital
Management, Inc's ("Gates") underlying assumptions prove to be
incorrect, the actual results may vary materially from outcomes
indicated by these statements. Accordingly, forward-looking
statements should not be regarded as a representation by Gates that
the future plans, estimates or expectations contemplated will ever
be achieved.
Media Contacts:
ASC Advisors
Taylor Ingraham / Morgan
Davis
tingraham@ascadvisors.com / mdavis@ascadvisors.com
203-992-1230
Investor Contact:
Paul Lucas
Managing Director
plucas@gatescap.com
212-626-0290
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SOURCE Gates Capital Management