Now that federal officials at CFIUS have approved the sale of Vista Outdoor’s (NYSE:VSTO) Kinetic Group to Czechoslovak Group (CSG), it’s entirely up to the shareholders as to whether the sale proceeds or not.
We haven’t heard of any issues, but until the shareholders vote via virtual shareholders meeting next Tuesday, July 2, the transaction is still up in the air.
What has (finally) cleared is the cloud of smoke that’s been blown at investors by counter-suitors. Opponents to CSG’s purchase rolled out a Senator, police chiefs and assorted others to raise almost laughable objections to the transaction.
I’m no fan of selling American companies to anonymous foreign investors, but there’s very little chance of foreign companies investing in American companies to coming to lose money.
As was explained to me in an “any-question is OK” discussion with CSG officials, the only place in the world where you can grow a firearms-related business is the United States.
The rest of the world restricts everything from firearms ownership to commercial shipping. Unless you depend on military supplier contracts, business in this sector is problematic, at best.
As far as the specifics of the sale, the final numbers to shareholders have grown due to the unsolicited acquisition offers. CFC’s final purchase price has increased ninety million dollars, from $1.91 billion to $2 billion. That translates to $18/share at closing - a bump up of more than $5/share from the original offer.
That’s a lot of cash on the table, but no deal’s complete until all funds transfer. We’ll keep watching.
Speaking of big numbers, here’s one noteworthy bit of business information from Azimuth Technologies’ COO/Pro Shooter Tommy Thacker . He sent me a note bit earlier this week telling me that Azimuth, known for their firearms component manufacturing, has shipped their two millionth bolt carrier group to a customer.
"We have an amazing staff, and we take pride in supporting our partners in the industry,” and, Thacker adds, “this milestone is something that we are all immensely proud of.”
Azimuth has done a lot of growing over the past thirteen years. Today, the Naples, Florida, company operates out of over 100,000 square feet of active floor space, has 266 CNC machines, and a team of 250 employees.
It’s worth noting that Azimuth is about an American company as you’ll ever encounter. It’s owned by Chumash Capital Investments, LLC (CCI), a wholly owned investment entity of the Santa Ynez Band of Chumash Indians.
One more noteworthy industry item today: I’m still regretting having to miss what was a noteworthy birthday celebration this weekend in Grand Island, Nebraska.
The Hornady family and business invited around 3,000 friends, neighbors and industry contacts to come help them celebrate 75 years of business. A large percentage of them showed up.
Having helped Ruger and Hornady celebrate their 75th birthdays at SHOT Show in January, I knew there was something big being planned by “the Hornadys” ( my name for father/son Steve/Jason). They’ve ably carried on the family business begun by Joyce (J.W.) Hornady in a rented garage on Fourth Street in Grand Island.
A lot’s changed since 1949, including Hornady having growth to become the world’s largest independently owned maker of bullets, ammunition and reloading tools, but one thing hasn’t changed…the Hornadys -family and company- value people - and totally know how to throw a celebration.
I talked with Jason Hornady about the company, the industry and what he sees in the immediate future for the industry. You can read that interview in this week’s edition of QA Outdoors.
By the way, he says I’m invited to the 100th anniversary party. I’ve put it on my calendar.
We’ll keep you posted.
— Jim Shepherd