CSG Completes Acquisition of The Kinetic Group

By Slaton L. White

In the heyday of American whale hunting in the 19th Century, when whaleboats and their crews got dragged behind a harpooned whale, it was called going on a “Nantucket sleigh ride.” The 21st century equivalent just could be when a major American manufacturer is acquired by a foreign company. For the past 18 months, The Kinetic Group, the American owner of such iconic ammo brands as Federal, CCI, and Remington, has been dragged along in a tidal wave of publicity created when The Czechoslovak Group (CSG) set out to buy the company.

CSG is based the Czech Republic, where it is an industrial technology company that specializes in defense, aerospace, and ammunition. The announcement to buy Kinetic (a division of Vista Outdoor) set off a firestorm  of criticism, much of it uninformed, says Jason Vanderbrink, CEO of Kinetic. “Many of the major firearms companies are foreign owners with U.S. operations. Becoming part of CSG will have no negative affect on the business.”

The sale is now complete, and Vanderbrink says retailers and consumers can rest assured that the new ownership will be a good thing for all. “Under new ownership we can expect more capital investment, which will fuel more research and development,” he says.

CSG also provides another competitive advantage: it is privately held. Publicly held companies have to deal with various distractions, such as quarterly earnings reports to Wall Street as well as various required government filings, all of which direct resources and time away from the business at hand. 

“Getting out of the public markets and into private markets allows us to really foster growth. We want to grow the business and grow our U.S. operations,” Vanderbrink says. “Going private gives you a long-term look on the horizon, which is again good for consumers. We’re no longer concerned about 90-day increments.”

Under CSG, Kinetic also can now expect to compete more effectively in global markets, especially foreign military sales. This is an area where Kinetic currently does not have a large footprint. Vanderbrink says such sales are one of CSG’s strengths. “We don’t do a whole of business there,” he says, but he believes being part of CSG will now allow Kinetic to open up some of those markets that it currently does not serve. “We need to expand operations to do that,” he says. Which is where the extra investment in R&D comes in.

“At the end of the day,” Vanderbrink says, “our customers and our consumers need to know that we are going to stay an American manufacturer.” In other words, the sale will help preserve the factories, and the jobs, of the communities Kinetic currently serves. (thekineticgroup.com)