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Vista Outdoor is splitting into two business. One will combine its ammunition businesses, including Federal in Anoka, and the other focusing on outdoor products.

The process of splitting the company is expected to conclude in 2023, Vista, also headquartered in Anoka, said in its release on first-quarter earnings.

Both will be public companies but names for the companies haven't been decided.

The ammunition company — which also includes the Remington ammo brand — will remain headquartered in Anoka and be led by Jason Vanderbrink, current president of Vista's Sporting Products group.

The outdoor products group — which will include the brands CamelBak, Bell, Giro, Camp Chef, Bushnell and others — will be headquartered in in Bozeman, Mont., and led by current Vista CEO Chris Metz.

Metz called the deal "bittersweet" in an interview after the company's earnings call with analysts. The company has made seven acquisitions in the last two years, and the stock has rallied from below $5 a share in August of 2019 to nearly $40 today.

Despite the share price rise increase, Metz and Vista's board felt the market was still undervaluing Vista as a whole.

"It was largely because the two businesses are distinct and different enough that they both would benefit from having their own focus, their own tailored capital allocation philosophy and a different investment community would be interested in each asset class in of itself," Metz said.

Vista's two main operating segments have different growth profiles. Metz said the total addressable market is about 20 times larger for outdoor products than for ammunition, further rationale for the split.

While the outdoors products headquarters address will change, Metz stressed the people who work in Minnesota will remain in Minnesota.

"I think it will largely be it will be a good thing for all constituents," Metz said.

The split announcement comes during a strong run for Vista. The company saw its seventh straight quarter of growth. For the fiscal fourth quarter ended March 31, the company earned $112.8 million, or $1.93 a share, up from $67 million, or $1.11 a share, in the same period last year. Revenue grew 35.6% to $808.6 million.

Adjusted earnings per share for the quarter were $2.04, double the year ago total and beating analysts' expectations of $1.80.

Fourth-quarter sales in the ammunitions businesses were $464 million, up 56%, while sales for the outdoor products unit were $345 million, up 15%.

Shares of Vista Outdoor closed Thursday at $39.65, up 4%, on a day when the overall markets were down.