New $2B bid for ammunition brands including Federal already withdrawn

A $2 billion bid to acquire Vista Outdoor’s ammunition business, which includes Federal ammunition, has been withdrawn.

The U.S. bidder, first identified as the Houston-based investment firm JDH Capital by the Financial Times, made a $2 billion offer on June 10 for the unit, called the Kinetic Group, that competed with the $1.96 billion bid from Prague-based Czechoslovak Group (CSG) that was accepted by the Vista board of directors.

In a filing with the Securities and Exchange Commission on Monday, Anoka-based Vista Outdoor said the bid was being withdrawn because of a conflict in an agreement between JDH Capital and MNC Capital, the Texas-based investment group that has made multiple bids to acquire all of Vista Outdoor.

JDH Capital is the family investment office of Jeffery Hildebrand, who owns Hilcorp Energy, one of the largest privately owned energy companies in the U.S.

An affiliate of JDH Capital in 2019 acquired the Savage firearms business from Vista for $170 million. In January, JDH Capital acquired two smaller U.S. based ammunition companies, Sierra Bullets and Barnes Bullets, from Clarus Corp. for $175 million.

JDH Capital was an unnamed potential co-investor with MNC Capital when MNC was making its original bid to acquire just the ammunition business from Vista Outdoor in September 2023, according to an Axios story.

Vista Outdoor referred to agreements made between JDH and MNC when announcing the latest bid had been withdrawn, though Vista did say in the release those claims were disputed.

“While it is unfortunate that MNC apparently caused the alternative party’s indication of interest to be withdrawn, we firmly believe that completing the transaction with CSG will be a great outcome for our stockholders,” said Vista Chair Michael Callahan.

Time for MNC or JDH to refashion bids before special Vista shareholder meeting is running out. A special shareholder meeting for Vista is set for July 2.

The Committee on Foreign Investment in the United States must approve the deal with CSG. That approval is pending.