Shareholders of US Vista Outdoor approved the sale of The Kinetic Group to the Central European regional armoury and heavy machinery company Czechoslovak Group (CSG) controlled by Michal Strnad, putting an end to a lengthy acquisition saga.   

“We are thrilled to have received overwhelming support from our stockholders for the compelling transaction with CSG,” stated Michael Callahan, Chairman of the Vista Outdoor board of directors in a press release.    

Last month CSG increased the purchase price for the Kinetic Group to $2.225bn (€2.028bn), while Vista announced it had entered into a definitive agreement with the investment company Strategic Value Partners (SVP), to sell its other arm, Revelyst, for $1.125bn. The shareholder vote had been postponed multiple times before amid rival bids.

“The CSG transaction maximizes value for our stockholders, while also providing an ideal home for our leading ammunition brands and significant opportunities for our employees,” Callahan also stated.

Vista noted that approximately 97.89% of votes cast were in favour of the CSG transaction, which is approximately 82.57% of all outstanding shares. The CSG transaction is expected to close on November 27, Vista also noted.  

CSG Spokesperson Andrej Čírtek stated, “CSG welcomes the decision of the general meeting of Vista Outdoor, which opens the path to the closing of the transaction”, expecting it to happen in the “upcoming days” and adding that with Kinetic, CSG “will become the largest producer of small calibre ammunition in the world”. 

Vista obtained a security clearance in the USA for the CSG deal after criticism of CSG’s connections to the then pro-Kremlin Czech President Milos Zeman, whom CSG backed in his presidential campaigns in the 2010s, and who openly stated he acted as CSG's lobbyist to further his country's industry. CSG also faces lawsuits in the US over its Russian connections.

CSG, a key weaponry and ammunition company in Czechia and Slovakia, was founded by Jaroslav Strnad, who refurbished old Soviet military equipment for the Czech army and who also controls CE Industries. Boosted by the increased demand fuelled by the all-out war in Ukraine and other military conflicts, CSG has been on a shopping spree in the past two years.