More about the Kinetic Group acquisition: Q&A

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Learn more about CSG and our history.

Who is CSG?

The Czechoslovak Group (“CSG”), based in Prague, is a leading industrial technology company operating in five strategic business segments: Defense, Aerospace, Ammunition, Mobility and Business Projects. It is 100% controlled and led by entrepreneur Michal Strnad, who has transformed it into the preeminent Czech industrial group, with a strong international footprint. CSG employs more than 10,000 people worldwide and owns and manages a diverse portfolio of industrial and trading companies across the civil and defense sectors. CSG has a demonstrated history of supporting the long-term growth and success of the companies it acquires.

Why is CSG acquiring Vista’s Kinetic Group (former Vista Sporting Products)?

With this acquisition, CSG will become one of the most important ammunition manufacturers in the world with a comprehensive portfolio across all calibers. CSG acquires companies to operate and invest in over the long term – and that is it’s intent with the Vista Sporting Products business. CSG understands the special importance of the brands that are part of this business to American consumers. CSG intends to respect and maintain the production quality and supply of the legacy brands that Americans have relied on for decades.

Where does CSG currently sell ammunition?

CSG sells to customers all over the world. CSG sells small-caliber ammunition to end customers for competitive shooting, recreational shooting, hunting and personal/home defense. A smaller part of CSG’s business is selling to the defense and law enforcement sectors in NATO and EU countries. CSG also supplies to NATO armies and Ukraine.

What countries does CSG supply armaments to?

CSG companies are major suppliers to the Army of the Czech Republic as well as the Ukrainian Army. Another important market is Indonesia, where CSG companies supply, for example, a comprehensive air defense system.

Does CSG currently sell to law enforcement in the U.S. and/or the U.S. military?

CSG companies have supplied law enforcement in the US with POLR-1 radars. They also supply the US Army with components of Soviet-origin air defense systems for training purposes. Working with Raytheon, with the support of the US government, CSG KAI provided training for Afghan helicopter pilots and mechanics before the Taliban took over the country.

What is CSG´s role in the artillery ammunition´s industry?

In Europe, we are an important player in the area of artillery ammunition, one of top five producers on the continent and we play animportant role in delivery of this strategic commodity to both NATO countries and Ukraine.

Someone may say that big American brands of small caliber ammunition should stay in American hands. What´s your comment to this?

We are of the opinion that a company like ours, an expert trader and producer of defence and small calibre ammunition based in a NATO country, a US ally, which holds on to and develops companies for the long term and not for financial speculations, is the right owner, and one who minimizes any risks for US customers, be it in either the civil or the law enforcement segment. We will bring stability and additional investment to US small calibre ammunition producers which they currently need.

Are there any restrictions in supplying small caliber ammunition to US defence and law enforcement customers, if the producer is owned by a foreign entity?

We are not aware of any such restrictions. We would note that Fiocchi – owned 70% by CSG and before that by an Italian entity – has for years, , been selling ammunition to law enforcement distributors. For example, in 2023 Fiocchi sold ammunition directly to the Department of Homeland Security. Furthermore, PMC, a South Korean ammunition manufacturer, sells to US law enforcement through FieldUSA.com – a law enforcement-only distributor. There are other similar examples in the market.

Do you have any special relation to Russia or the Russian regime?

The facts are as follows: We are a strategic supplier of defence products to NATO countries, several of our companies are holders of national and NATO security clearance level Secret, we are a very important supplier of the Ukrainian Army and we have a rich legacy of cooperation with US companies like Raytheon and General Dynamics. Due to the acquisition of Fiocchi last year we had to pass the CIFIUS screening. None of this would have been possible if we had any ties to Russia. The reason we believe why these attacks appear in the public space is simply to damage our reputation. We will not speculate about who the perpetrator is. We won’t waste our time on this because we know that regulators and institutional shareholders are professionalswhose decisions are based on hard facts.

Does CSG cooperate with Chinese Huawei?

There was a claim that DAKO-CZ, a member of the CSG group, cooperated with the Chinese company Huawei. This is misleading and false. DAKO-CZ did not cooperate with Huawei. DAKO-CZ supplies braking systems for rail vehicles for the well-known Swiss company Stadler which operates in the USA. One of Stadler's projects is the delivery of trains to Huawei's Dianshan Lake campus in China. Fabricating the claim that CSG is working with Huawei is a typical example of fake news.

What will be your first steps once the transaction is successfully closed?

Firstly, we need to start working together with the management of all individual companies on existing tasks and see what is left, following the spin off. Even for them, it is going to be a new situation - being on their own. Depending on the date of the transaction being concluded, we will see how far into the new fiscal year we are. Obviously, the plan and budget for the next year is still their decision, so we will need to understand the opportunities and risks associated with these plans and take it from there.

How are you going to manage the Kinetic group/ sporting division?

Kinetic Group together with Fiocchi group will be part of our Ammo+ division which focuses on small calibre ammunition production and is led by David Štěpán, a board member of CSG. We see our added value in bringing production experience from Europe and other markets. The idea is to bring together the best practices and processes from both groups and to be better in what we do every day. On the other hand, we are ready and willing to help the acquired companies better market and sell their products outside of US.

Are you planning to expand the Kinetic Group products outside of the USA? Are you planning any transfer of technology, any JVs, partnerships with foreign entities etc.

The priority for us is the US commercial market. Secondly, our group is strong in the defence segment so we will also focus on future supplies to NATO countries, and NATO partners. We are convinced Remington and Federal should be able to successfully compete in EU and other foreign markets.

How is Fiocchi of America going to fit into the new structure?

Fiocchi of America is still a 100% subsidiary of Fiocchi Munizioni, the Italian parent entity where CSG has a 70% ownership and that will remains valid even after the Kinetic Group acquisition.

As a group and withing the Ammo+ division, we will be looking at possible optimalisations and effective capacity utilisation. The obvious possibility is to limit the transportation of ammunition components from Italy to Fiocchi of America and use the available production capacity of TheKinetic Group. This will also allow Fiocchi Italy to redirect its additional production capacity towards other markets. However, this area is very complex, we will need to respect a number of laws and regulations as well as any existing agreements.

Of utmost importance to us is, that there is no adverse impact to our customersand that they get the products they are used to on the shelf, on time and that they keep relying on the quality and customer service they are used to.

Did CSG´s member company ELDIS deliver radars to China?

ELDIS, which holds Czech national and NATO security clearance level SECRET, which was last extended in 2022 and is valid until 2029, concluded a contract in 2018 for the supply of 13 radars for civil air traffic control to China. This was a standard deal that did not establish any special relationship between CSG and China. The information about this project is publicly available at ELDIS´s official website and in several media outlets. ELDIS is a traditional producer of ATM radars which for example cover the entire airspace of India.