KCK (CZ) company sues after failed attempt to buy a firearms brand (Vista)

[The Heretic]

KCK company sues after failed attempt to buy a firearms brand

A Kansas City, Kansas, firearms dealer called CZ USA LLC is suing Vista Outdoor, claiming it is owed nearly $1 million in expenses related to the failed acquisition of one of Vista's brands.

news.yahoo.com

Warning: Paywall

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[JuglansRegia]

Can you summarize please?

 

[The Heretic]

Can you summarize please?

summary is in the OP - i am not a sub to the site, so that is all i see

 

[arrowshooter]

The article is on "pay to view" sites only, but I found this on another forum:

A Kansas City, Kansas, company called CZ USA LLC is suing Vista Outdoor Inc. after a failed attempt to acquire a firearms brand.

CZ USA is a wholesale provider of firearms that sells to authorized dealers and not individuals. It sells handguns, rifles, shotguns, suppressors and other items. CZ USA attempted to acquire an unspecified firearms brand from Vista Outdoor Inc., a leading outdoor products provider that logged $1.76 billion in sales in 2020. Vista Outdoor (NYSE: VSTO), based in the Minneapolis area, owns dozens of brands, including Overland Park-based Bushnell, Remington, Federal, Bell, Camelbak and others.

In August 2018, CZ USA entered into a confidentiality agreement with Vista Outdoor, enabling the companies to engage in confidential discussions about the proposed transaction. In November 2018, the parties entered into an expense reimbursement agreement that governed the due diligence period for the proposed transaction, folding those expenses into the transaction if it occurred and requiring reimbursement from Vista if it fell through.

The agreement allowed CZ to be reimbursed up to 50% of any reasonable out-of-pocket costs and expenses incurred during the evaluation and negotiation of the potential transaction, to a maximum of $1 million.

CZ USA said it submitted a purchase price affirmation notice to Vista Outdoor on Dec. 14, 2018. The expense reimbursement agreement required Vista to enter into a definitive exclusivity agreement within five calendar days of receiving the purchase price affirmation notice, a deadline Vista did not meet, the lawsuit alleges. On Dec. 31, 2018, CZ USA requested payment of $992,424 in expenses, which is 50% of the $1.98 million it spent during the due diligence period. CZ USA said it sent additional requests for payment in January and February of 2019, to no avail, according to the lawsuit.

CZ USA filed suit against Vista Outdoor on Oct. 22, 2021, in federal court in Kansas, claiming breach of contract, unjust enrichment, and breach of implied good faith and fair dealing.

Vista Outdoor has not yet filed an answer to the complaint and did not reply to requests for comment in time for publication.

Ken Barnes and Taquiero Smith of Barnes Law Firm LLC in Kansas City represent CZ USA.

 

[mkwerx]

I found the same text in the article. I'm not paying to subscribe to all these pay-to-view sites. Firefox "view source" pulls up all the HTML - and if you scroll thru the wall of code, you come across the text of the article, which is the same as what's shown by arrowshooter.

 

[Flopsweat]

I found it in the clear here:

https://www.bizjournals.com/kansascity/news/2021/11/01/vista-outdoor-cz-usa-firearms-acquisition-lawsuit.html

 

[wjv]

Sounds like CZ was party to a contract with very specific terms, that Vista has chosen to ignore. Of course Vista may have a completely different take on the issue.

 

[PaulF]

Sounds like CZs taking over, they already bought colt, now they're taking a run at Vista ( who own federal, cci, and Remington ammo) up next looking your way Glock and S&W

 

[mkwerx]

Sounds like CZs taking over, they already bought colt, now they're taking a run at Vista ( who own federal, cci, and Remington ammo) up next looking your way Glock and S&W

I somehow doubt CZ will be hoovering up Glock - but that could get interesting! A Glock branded, hammer fired double or single action pistol? A metal framed Glock from the factory? A Glock-CZ carbine?

Smith is also solvent enough that I don't htink CZ would be in a position to buy them out either.

 

[Flopsweat]

I somehow doubt CZ will be hoovering up Glock - but that could get interesting! A Glock branded, hammer fired double or single action pistol? A metal framed Glock from the factory? A Glock-CZ carbine?

Smith is also solvent enough that I don't htink CZ would be in a position to buy them out either.

Plus CZ knows the difference between single action and double action.

 

[mkwerx]

Plus CZ knows the difference between single action and double action.

That they do! And they know (and do) both very well!

Interesting now that CZ owns two makers of 1911's - Colt and Dan Wesson - I wonder if we'll ever see a CZ branded 1911 made? Or a CZ branded AR-15 for that matter.

 

[Flopsweat]

That they do! And they know (and do) both very well!

Interesting now that CZ owns two makers of 1911's - Colt and Dan Wesson - I wonder if we'll ever see a CZ branded 1911 made? Or a CZ branded AR-15 for that matter.

Everything CZ that I've ever shot has been well above average in quality. If they can apply a little of their magic to the brands that they are acquiring it's a win for everyone. If they just slap their name on stuff eventually it will degrade their reputation.

 

[The Heretic]

That they do! And they know (and do) both very well!

Interesting now that CZ owns two makers of 1911's - Colt and Dan Wesson - I wonder if we'll ever see a CZ branded 1911 made? Or a CZ branded AR-15 for that matter.

CZ 1911 A1 - CZ-USA

Discontinued 2015. Paying homage to the legend, the CZ 1911 A1 is the first CZ-branded pistol made in the US.

cz-usa.com

 

[PaulF]

That they do! And they know (and do) both very well!

Interesting now that CZ owns two makers of 1911's - Colt and Dan Wesson - I wonder if we'll ever see a CZ branded 1911 made? Or a CZ branded AR-15 for that matter.

Not really a 1911 guy, and I know everyone and their dog makes ARs but for some reason the idea of a CZ AR15, or AR10 kind of gives me tingleys.

Also I didn't even know they bought Dan wesson.

 

[PaulF]

CZ 1911 A1 - CZ-USA

Discontinued 2015. Paying homage to the legend, the CZ 1911 A1 is the first CZ-branded pistol made in the US.

cz-usa.com

I'll bet you could still find one of those on Gunbrоker for the low low price of $5,000 or so.

Looks like a hi-power.

 

[po18guy]

KCK company sues after failed attempt to buy a firearms brand

A Kansas City, Kansas, firearms dealer called CZ USA LLC is suing Vista Outdoor, claiming it is owed nearly $1 million in expenses related to the failed acquisition of one of Vista's brands.

news.yahoo.com

Warning: Paywall

Warning: Yahoo.

 

[Old Noob]

I love my CZ's.