Vista Outdoors is breaking up into 2 companies

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Thomasss

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Vista board of directors voted on May 5 to split the company in two. One new part will be called
Vista Outdoors Ammo for starters and may change it's name again later. As one might guess, the ammo, reloading and some of the other hunting portions of the company will separate from the original Vista Outdoors. The separation is expected at the end of this fiscal year.
Now it is not widely known that the board of directors control the majority of stock in the company.
This would imply good reasons for the split. Vista Outdoors has shown a 37% increase in sales so far this year. They bought Remington Ammo in October of 2020.
 
Well, the good news is, whatever is done in the board room and legal wing won't' effect the production floor. The people who work just keep on going and (in my experience having gone through multiple such mergers and acquisitions in aerospace) rarely even notice the change of company logo on their paychecks. I worked for Piper in Vero for a year before I knew they'd been sold, acquired, consumed, and fully Borg'd - again, and for the third time in three years. Hopefully, this will all go so smoothly all we notice is a drop in prices and improved quality.
 
If Vista does split into an Ammo division and other, we can only hope for the best. Having said that, it was about a year and a half ago I woke up one day to realize how many eggs were in Vista's basket. How vulnerable the entire shooting is to what happens to Vista. Wrong sort gets hold of that and it could be a problem. Which is why I went full bore into resumption of reloading and have stocked enough Vista components to last me the duration of my ability to care.

For now....it is enough. If good things keep happening and primers come back in abundance, "enough" will get upgraded to silly stupid.
 
Vista board of directors voted on May 5 to split the company in two. One new part will be called
Vista Outdoors Ammo for starters and may change it's name again later. As one might guess, the ammo, reloading and some of the other hunting portions of the company will separate from the original Vista Outdoors. The separation is expected at the end of this fiscal year.
Now it is not widely known that the board of directors control the majority of stock in the company.
This would imply good reasons for the split. Vista Outdoors has shown a 37% increase in sales so far this year. They bought Remington Ammo in October of 2020.

Missed that part the first time through. Only a handful control the whole thing? That's not good. Offers can be made they can't (or won't) refuse.
 
Missed that part the first time through. Only a handful control the whole thing? That's not good. Offers can be made they can't (or won't) refuse.
I have talked with investment managers that say having the board with controlling interest should be a win win for everyone. For there are many company boards that have no stock, so they would be the ones more vulnerable to being pushed around. What this board does will affect their own pockets, all of the stock holders, and the buying public. They wouldn't be in this position if it were not for the increase in sales. Sales projections also look very good for the next few years. I think they would want to continue promoting customer satisfaction for all the money they paid for Remington ammo for example. They are holding a fair amount of debt and with inflation and the war in the Ukraine, those issues will also be considered with the split. And may be they already have. Their rival, Winchester, won a $145 million contract last year from the US military for pistol ammo.
 
Reminds me of the old saying......."only two people I trust are you and me.......and I'm not so sure about you".

If the directors are bullet proof.........rock solid shooting supporters who appreciate the gravity of the situation and can be counted on to do the right thing no matter what.......they got my support. Hope that is the case. It would be If I was one of those directors.

I'm tainted by memory of my first job. Working for a private, closely held company. Throughout it's history, plan was to reward best employees with stock in company. That way.....those in charge had a serious vested interest in outcome. When you retired, you sold your stock back.....younger guys bought in......cycle repeated. Problem being over time only 4 or 5 guys wound up with all the stock. When they retired, they got an offer to sell to an outside holding company.........$1.50 on the $1.........so sold out. We were told at the time......."don't worry, nothing is going to change". Except that wasn't true.....changes started before the ink was dry. Three years later company was gone.
 
Mergers,divisions and such happen all the time. Usually as per the above the people who come out short are the employees, usually older who can't go find a new job. Oh they always learn to "code", whatever that is.
 
Well, it might have been a good discussion, but it got derailed immediately by someone who couldn’t at least keep it on topic for the thread.

I have posted this before, but when/before posting, ask yourself if it’s on topic for the thread, and does it bring value.
 
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