Vista Outdoor shareholder Gates Capital intends to vote against CSG proposal

Vista Outdoor shareholder Gates Capital Management, an alternative asset manager that beneficially owns approximately 9.6% of Vista’s shares of common stock, 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, or CSG. Highlights of the statement include: “…independent proxy advisory firm 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 $1.1B 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”.