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ISS recommends that Vista Outdoor shareholders vote in favor of the sale of The Kinetic Group

Vista Outdoor has announced that Institutional Shareholder Services recommends that shareholders vote “FOR” the proposed sale of Vista Outdoor’s business, The Kinetic Group, to the Czechoslovak Group. The special shareholders’ meeting of Vista Outdoor will take place on June 14, 2024. On May 27, 2024, Vista Outdoor entered into an amendment to the merger agreement with CSG, which, among other things, increases the basic purchase price to be paid by CSG for the acquisition of the activities of The Kinetic Group to $1.96 billion and increases the cash consideration payable to Vista Outdoor shareholders to $16.00 in cash. Under the amended merger agreement with CSG, Vista Outdoor stockholders will receive one share of Revelyst common stock and $16.00 in cash, in each case, per share of Vista Outdoor common stock upon closing of the transaction. In reaching its conclusion, ISS stated in its report dated May 31, 2024: “In addition, the board appears to have conducted a reasonable strategic review, including reaching 26 parties, receiving five bids and multiple increases in the offer price. The process included a one-month delay to consider a softer offer from a competing bidder, during which CSG improved the terms of the merger agreement… The cash portion of the consideration provides certainty of value for (The Kinetic Group activities), and the share portion offers VSTO shareholders the opportunity to participate in the potential benefits of the (Revelyst activities). In light of these factors, support for this proposal is warranted.”