Sports equipment company, food manufacturer bringing jobs to Utah

Brice Wallace 

A sports equipment company will move to Summit County and a food manufacturer will grow its operations in Ephraim after being approved for a pair of state tax credit incentives.

Kent Outdoors will create 84 jobs over the next few years as its headquarters move to Summit County. C&J Specialties Inc. will add 190 jobs over the next two decades in an expansion project in Ephraim.

The companies were awarded the incentives by the Governor’s Office of Economic Opportunity board during its October meeting at the One Utah Summit in Cedar City.

Kent Outdoors is a collection of outdoor businesses that started by focusing on water sports activities and advanced to land offerings and other outdoor gear, including snowboards. The relocated headquarters will serve as the base for the Kona Bicycles business, Amy Stern, senior vice president of people experience, told the GOEO board. The company’s offerings include water skis, wakeboards, wakesurf boards, stand-up paddleboards, kayaks, mountain and urban bikes, snowboards, hydrofoils and personal flotation devices.

“When we think about what our business represents and the wonderful connection that we think we will have in the state of Utah, both as a wonderful outdoor area for our people to explore, our employee base, but also the ability to bring new recruits to Utah and introduce them to the point of connection where their passions for their sports can really be served year-round in Utah, [it] is super-exciting for us as a business and as an opportunity. … We’re really jazzed to be talking to you today,” Stern told the board.

Seawall Capital, the private equity owner of Kent Outdoors, said Kent would be relocating to Park City. Kent Outdoors began as Kent Water Sports but rebranded to Kent Outdoors in January 2022 after the acquisition of Kona Bicycles and BOTE in 2021.

“We’re thrilled to move Kent Outdoors’ headquarters to Utah to embrace the state’s vibrant business environment and cherished outdoor lifestyle,” Matt Eby, chairman of the Seawall board of directors, said in news release about the headquarters move. “We look forward to contributing to Utah’s community, exploring its landscapes, and fostering strong partnerships with like-minded individuals and brands. This relocation signifies a new chapter for us, aligning our family of brands with Utah’s dynamic spirit for mutual success.”

Seawall said each Kent Outdoors brand will have team members at the new Utah headquarters location, while other roles and departments will remain at their original hubs. For example, the Kona Bicycles product design team will remain in Bellingham, Washington. The new model is designed for flexibility and versatility, and any employee can move between locations depending on company needs, current projects, seasonality and personal preference.

“This is a very exciting evolution for Kent Outdoors and will create an important center of gravity for the business as we continue to grow,” Eby said. “Since our inception, the vision has been to create an environment where brands and founders can grow to their full potential. Giving our teams and brands a central location to call home will only add to the value that we can provide.”

The GOEO board approved a tax credit of up to $473,721 over five years for Kent Outdoors. The project is expected to generate new total wages of about $39.8 million over five years and new state tax revenue of nearly $2.4 million during that time. The new jobs are expected to pay an average of $124,166.

“I’m excited about these jobs,” Katelin Roberts, GOEO board member, told Stern. “They’re all high-paying, exciting jobs for Utah. I know you have a big base in water sports, and we do it all in Utah. … Super-excited about bringing Kona to Utah as well.”

“Kent Outdoors’ selection of Utah for its new headquarters is a win-win,” Ryan Starks, GOEO’s executive director, said in a prepared statement. “Utah’s reputation as a year-round recreational paradise complements Kent’s portfolio of clients and activities from water to snow.

“This move not only taps into our state’s diverse recreational offerings but also adds to our dynamic economy. It’s a smart choice that will surely contribute to Utah’s continued growth as a hub for outdoor enthusiasts and thriving businesses alike.”

“Kent Outdoors will find itself right at home among Utah’s thriving outdoor products industry,” said Scott Cuthbertson, president and CEO of the Economic Development Corporation of Utah. “The company is a perfect fit for the Summit County community.”

The GOEO board approved a tax credit of up to nearly $3.2 million over 20 years for C&J as part of the state’s Rural Economic Development Tax Increment Financing (REDTIF) program. It also was approved for up to $150,000 from the Industrial Assistance Account for talent and workforce development.

C&J began as a kettle corn production company and has expanded to produce other packaged snack items, including protein bars and cotton candy, products at popular chains such as Swig Drinks, popcorn, no-bake cookies, protein shakes, powder mixing, pouching and stick packing. It has about 40 employees in the Sanpete Valley.

Colby Divecha, CEO and owner, told the GOEO board that he began making kettle corn as a 14-year-old at Salt Lake bees games. He later designed his own kettle and sold kettle corn outside Walmart stores. The company later opened a 6,000-square-foot shop in West Valley City and sold popcorn at 7-Eleven stores. Operations moved to Ephraim in 2015. The company now has about 50,000 square feet there and wants to expand.

“We have a lot of room to grow and expand, which is why we’re so excited about the REDTIF and the IAA grant that we’re applying for because we think that we could expedite hiring here rather quickly with the opportunities that we have,” Divecha said.

The company expects to spend nearly $1.7 million on the expansion, which is expected to generate total new wages of $102 million over the next 20 years and new state tax revenue of nearly $6.4 million during that time. The new jobs are projected to pay $38,499.

“We’re excited for this expansion project you have going on,” Roberts told Divecha. “Please keep us posted. We look forward to seeing your growth.”

“Utah’s unique blend of agricultural resources, infrastructure and a skilled workforce make it an ideal destination for food manufacturing companies like C&J Specialties to expand,” Starks said in a prepared statement. “It’s not only tapping into a thriving economy but also contributing to Utah’s reputation for excellence in food production and distribution.”

“Much of the work we do is with Utah companies evaluating options for their next business location,” Cuthbertson said. “It’s gratifying to see a good local employer like C&J Snacks expanding to create meaningful job opportunities in rural Utah.”

GOEO does not provide upfront cash incentives. Each year that an incentivized company meets the obligations in its contract with the state, it will qualify to receive a portion of the new, additional state taxes the company paid to the state.