Vista Outdoor, parent company of Remington Ammunition, said Thursday that it acquired Arkansas-based Fiber Energy Products to complement its Camp Chef cooking brand, all while its Lonoke ammunition plant continues to churn out products to meet strong demand.
The move comes after Vista Outdoor said last month that it would add a distribution center in Bryant and purchased Remington out of bankruptcy last year.
In a conference call detailing the Vista Outdoor's record second quarter, Chief Executive Officer Chris Metz, said the company had acquired of Mountain View-based Fiber Energy Products, an all-natural wood grilling pellet maker. The deal is valued at about $48 million, Metz said in a later phone interview.
Fiber Energy Products has a second plant in Seymore, Mo., and employs about 100 across its operations. The purchase locks down a consistent supply of pellets for Vista Outdoor's backcountry and backyard cooking brand Camp Chef. Metz said consumers were eager to have access to a Camp Chef branded grilling pellets and Fiber Energy Products is an industry leader with a stellar reputation.
In an emailed statement, John Papa Jr., general manager of Fiber Energy Products and Steve DeVoe, chief operating officer and executive vice president, said the company is thrilled to join the Vista Outdoor family of brands
"Being part of the larger Vista Outdoor network will allow our team to do what we do best: produce high quality grilling and heating fuel for our consumers," the two said in a joint statement. "Being part of the Vista network will support our next level of growth as we keep pace with elevated market demand for our products. Our dedicated employees have supported our growth and success, and I want to extend my sincere thanks for their dedication and commitment over the years. The future is bright for Fiber Energy Products and I'm excited for our business moving forward."
Metz also noted during the conference call that ammunition demand is still strong and Vista Outdoor is adding machinery to increase production at its various ammo plants. In the later phone interview, he declined to specify which plants would get additional gear citing competitive reasons.
"We're all one team," he said, noting that the company would put the new equipment in plants where it would do the most good.
The nation has been facing an ammunition shortage since 2020, driven in part, expert say, by the covid-19 lockdowns and fears over civil unrest.
Metz said the company has made great strides integrating Remington into its portfolio of brands, and Remington's sales alone should top $300 million this fiscal year. He noted that product innovations, including Remington's new Core-Lokt Tipped ammunition, are helping to drive sales. He said the Remington facility in Lonoke was going "full-tilt" and producing shot shells, rimfire, 9mm and hunting ammunition at "full-speed."
Remington's Lonoke facility employs about 1,100 people as of late July and is still looking for hundreds more workers. That's more than double the November 2021 count of around 450.
In late October, Metz said the company plans to open a distribution center in Bryant for two of the company's outdoor brands -- e-bike company QuietKat and Camp Chef. The location is expected to employ about two dozen by the end of the year.
Vista Outdoor formed in 2015 and is made up of 37 outdoor brands, including, bicycles, camping gear, golf and skiing equipment, optics and ammunition makers. It has 14 other manufacturing operations in the U.S. and Puerto Rico. Vista Outdoor purchased Remington's ammunition operations and other assets from the company when Remington Outdoor Co. declared bankruptcy last year.
Remington began production at the Lonoke facility in 1969. The operation includes 750,000 square feet of manufacturing space on 1,200 acres.
During the Thursday conference call, Vista Outdoor reported a profit of $139.5 million or $2.36 a share for the second quarter ending Sept. 26, up from $79.6 million or $1.34 a share for the year ago quarter. A consensus of 10 analysts predicted income of $1.80 a share for the quarter.
Revenue for the second quarter was $778.46 million, up 35% from $575.17 million for the same quarter a year ago. A consensus of 10 analysts predicted revenue of $724.8 million.
The shooting sports segment saw a sales increase of 49% to $566 million, driven by 65% growth in ammunition sales. The company forecast full year revenue expected at between $2.9 billion and $2.95 billion and adjusted earnings per share from $7.70 to $8 for the same period, up 110% from $3.66 in fiscal 2021.
Vista Outdoor shares moved up on the news of the strong quarter. Shares closed at $47.05, up $3.64 or more than 8% in Thursday trading on the Nasdaq. Shares have traded as low as $18.07 and as high as $48.75 over the past year.