(Bloomberg) -- Czechoslovak Group raised its offer for Vista Outdoor Inc.’s Kinetic Group ammunition unit to $2 billion, in an effort to seal a deal and ward off a competing takeover of the US maker of recreational products.  

The revised agreement increases the cash consideration payable to Vista Outdoor shareholders by $2 a share to $18, according a as statement Monday. Shareholders would retain ownership of the remainder of Vista Outdoor, which sells biking, hunting and hiking accessories and will be renamed Revelyst Inc.

The deal would add Remington and Speer bullets to products from one of Europe’s biggest ammunition providers, which said it will retain a strong commitment to US workers and customers. Revelyst would focus on brands such as Bell bicycle helmets, Camelbak hydration products and Camp Chef outdoor grills.       

Vista Outdoor in March rejected a $2 billion takeover offer from MNC Capital, saying that the plan to sell the ammunition business to Czechoslovak Group was more favorable to shareholders. The US company said it’s fully committed to the transaction, which must be approved by its shareholders.

The new bid represents a $90 million increase from an original $1.91 billion price, Vista Outdoor said. The company signaled in May 2022 that it planned to separate the two businesses. 

Anoka, Minnesota-based Vista Outdoor rose about 2.4% in New York trading as of 11:45 a.m.

Family-owned Czechoslovak Group, run by billionaire Michal Strnad, has seen revenue more than triple since Russia’s early-2022 invasion of Ukraine. 

The companies expect the deal to be completed this year, after clearance by the Committee on Foreign Investment in the United States, or CFIUS, and other conditions. A US lawmaker called on Treasury Secretary Janet Yellen earlier this year to “thoroughly review national security concerns” about the acquisition. 

CSG has won approval on previous deals from CFIUS, which cleared its 2022 acquisition of a 70% stake in Italian ammunition maker Fiocchi Munizioni. Strnad said, however, that the deal received greater scrutiny from CFIUS than normal, partly due to the war in Ukraine, taking seven months for approval rather than three months as was more typical. 

--With assistance from Lily Meier.

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