Vista to sell its Sporting Products business to Czechoslovak Group
Posted by Big Tex on May 14th 2024
A recent agreement was made between parent company Vista Outdoors and the Czechoslovak Group (CSG) for CSG to acquire ammunition industry names such as Federal, CCI, Remington Ammo, and Speer in a $1.91 billion deal. Vista is a parent company of over 40 brands in the sporting and outdoor products industry, and CSG is a leading industrial tech holding company that primarily focuses on ammunition, defense, aerospace, and mobility. Vista announced their plan to split into two separate corporations in May 2022, and the agreement between Vista and CSG came to fruition on October 1st of 2023. Since Vista has announced their plans, they've received and rejected two offers from other companies for the total acquisition of Vista Outdoors. CSG has vowed to preserve the values of Vista Outdoors, and Vista has worked closely with CSG to alleviate consumer concerns over the foreign acquisition of Vista Outdoors.
It is expected that this acquisition will likely drive up US ammo prices since CSG may prioritize foreign entities for supplying ammunition and ammunition components. Though CSG says they plan to continue US manufacturing capacities, it is apparent that CSG will likely prioritize ammunition reserves and manufacturing for the Ukraine war. As a result, US ammunition reserves and prices may take a hit in the immediate future.
Though this agreement has stirred up concerns for national security and domestic ammunition reserves, over the long-run this could open up significant business opportunities for domestic manufacturing of both components and assembled ammunition. New or existing manufacturers have the potential to capitalize on unfulfilled demand and establish domestic control of a critical industry. Furthermore, it could increase consumer desire to support US-based manufacturers and inspire newfound patriotism in the ammunition industry.
What we can promise is that Black Sheep Ammo will never sell out to a foreign company, and we plan to do our best to bring you high-quality, American-made ammo at a reasonable price. It is our utmost priority to support US-based companies and promote manufacturing right here on US soil.