Vista Outdoor Inc. has a agreed to buy the ammunition and accessories assets from the bankruptcy process of Remington Outdoor Company Inc.
Anoka-based Vista, which owns Federal Ammunition, is purchasing the assets for $81.4 million. The Remington unit generates about $200 million in annual sales.
The purchase includes Remington’s ammunition manufacturing facility in Lonoke, Ark. It does not include Remington’s firearms business.
“Remington ammunition and accessories have a storied role in America’s sporting heritage, with a legacy dating back to 1816,” said Chris Metz, Vista Outdoor’s chief executive, in a news release.
Vista will pay cash for the unit and expects the deal to be accretive to earnings in fiscal 2022.
The Bankruptcy Court of the Northern District of Alabama must approve the deal. There is a hearing on Tuesday. The deal also is subject to other customary closing conditions.
Vista reports its financial results in two segments: shooting sports, which includes ammunition and accessories, and outdoor Products. In the first quarter, the shooting sports segment sales rose 8.2%, partly fueled by increased participation in outdoor ventures.
There are nearly 5 million new gun owners in the United States this year, and retailers are reporting that 40% of sales are from people who have not previously owned a gun, with significant participation from people of color and women, according to National Shooting Sports Foundation (NSSF), the firearm industry trade association. Some purchases were made for self-defense, NSSF said, but a big percentage were from those interested in hunting or shooting sports.
In Vista’s first quarter conference call, Metz said in the spring 2020 hunting season, license and hunting tag sales were up about 35%.
“Across the country, state fish and game agencies have seen a major surge in hunting and fishing activity,” Metz said. “Lack of live sports, social distancing and field to table trends are additional drivers, getting people back into the woods.”