Remington Arms Has Been Sold...

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Fred Fuller

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http://www.wktv.com/news/local/6883912.html

Remington Arms Sold (Updated 10:14am)

Joseph Gross, Remington Arms Plant Manager, has confirmed that Remington Arms has been sold.

Remington Arms Company, Inc. is the only manufacturer of both firearms and ammunition for Hunting, Law Enforcement/Security, Government & Military applications in the United States. They have announced that it will be acquired by an affiliate of Cerberus Capital Management, L.P. as part of a definitive agreement between Cerberus and RACI Holding, Inc. for an estimated value of $370 million.

Tommy Millner, CEO of Remington said, "This transaction is an acknowledgment of the Remington tradition, its strong brand, and the excellent products built over 191 years through innovation and by our dedicated employees. Further, this new partnership signals our intent to continue the path of enhancing our production capabilities and product offerings, in order to further grow our presence domestically and internationally.

The company expects the transaction to close in June 2007.
 
I guess this means that we should buy what Remingtons we want now?

EDIT: Their website is www.cerberuscapital.com.

Here is an interesting quote from their website:

Cerberus Capital Management, L.P. is one of the world's leading private investment firms. Cerberus specializes in providing both financial resources and operational expertise to help transform undervalued companies into industry leaders for long-term success and value creation.
Click to expand...

I have a feeling this is going to be either really good for Remington or really bad, considering how outside investors have handled other companies (*cough*S&W*cough*).
 
An affiliate of the corp bought Bushmaster in 2006, so there is a firearms 'presence' in the company already.

lpl/nc
===

http://www.bushmaster.com/documents/news/bushmaster_continues_to_grow_.asp

Bushmaster Continues to Grow with New Owner

Windham, ME--April 14, 2006--We are very pleased to announce another important step in the growth of Bushmaster Firearms. The business of Bushmaster Firearms, Inc. has been acquired by an affiliate of Cerberus Capital Management, L.P.

Cerberus and its affiliated entities, headquartered in New York, manage funds and accounts with capital in excess of $18 Billion. The new company will be called Bushmaster Firearms International, LLC and its primary operations will remain in Windham, Maine and Lake Havasu City, Arizona. We will continue our 28 year history of commitment to providing high quality, affordable firearms, parts and accessories for Consumer, Law Enforcement, Military and International Customers. The new owners are committed to this company and these markets.

John DeSantis will continue as the CEO of the new company, and Richard Thurston and Allen Faraday will continue in their current roles as senior executives of Bushmaster. Chad Brooks will be joining Bushmaster as Chief Operating Officer. The new company will strive to capitalize on Bushmaster’s premier market position, and will continue to grow the business. Richard Dyke will serve on the Board of Directors.

As we continue to grow, we hope that you share our excitement about Bushmaster’s future, and our ongoing efforts to serve our customers with the highest quality products, the most responsive customer service, and the best delivery in the industry.



Sincerely,

John DeSantis, Chief Executive Officer
Bushmaster Firearms International, LLC
 
"Transforming undervalued companies."

Translation- Cut employee labor costs, engineering, and product quality to the bone. Then raise prices. Increase short term "profitability" of the company at the expense of product quality and long time employees. Then after you have picked the bones of the company for all it is worth, sell company to someone else at a profit. :rolleyes:
 
From Hoover's:

Named after a three-headed dog that guards the gates of hell, Cerberus Capital Management's investment strategy is to keep companies from flaming out. The company's portfolio includes holdings in more than 30 firms in a variety of industries, including a majority stake in Japanese bank Aozora, manufactured home loan servicer Green Tree Servicing, Tandem Staffing Solutions, and ACE Aviation Holdings, the parent company of Air Canada. Recent acquisitions include real estate services firm LNR Property and bus manufacturer Blue Bird. The company was also the lead investor of a group that acquired 51% of GMAC, the financing arm of General Motors, for some $14 billion

Early in 2006 Cerberus joined with SUPERVALU grocery, CVS Corporation, and Kimco Realty to buy grocery chain Albertsons in a deal worth $9.6 billion. Cerberus acquired Rafaella Apparel, a maker of women's sportswear, in 2005.

The company also owns stakes in Vanguard Car Rental Group and NewPage Holding Corporation (formed from Cerberus' acquisition of MeadWestvaco's paper business), which have filed for IPOs.
Click to expand...

http://www.cerberuscapital.com
 
In a way, it'll be good to have a company with that much clout lobbying for gun rights. As to the product's future, we'll have to wait and see.
 
trbon8r,

I have to agree with you 100%... having just gone through the same type of aquisition of my company a few years ago.

Chris
 
With taxes and gun laws being what they are in NY, I wouldn't be suprised to see this investor move the whole shebang to China or Turkey. After all, they are in business to make money, not friends.

It will be a sad day in American history if Remington goes the way of Winchester, or if it moves oversees. Pessimistic, I am, when Investors buy this big a company.:banghead:
 
I seriously doubt they can cut corners....er costs on the Express line any more than they already have. I just hope that the price of Wingmaster and Police guns doesn't go up.
 
Reuters said:
NEW YORK, April 5 (Reuters) - Private equity firm Cerberus Capital Management LP [CBS.UL] will buy closely held firearms maker Remington Arms Co. Inc. for $118 million, the companies said on Thursday.

As part of the acquisition of Remington, which makes guns for hunting as well as police and military uses, Cerberus has agreed to assume $252 million of debt, including a revolving credit line and subordinated notes.
Click to expand...

Details pretty vauge, but being a quarter of a Billion in debt doesn't sound like a financially healthy business. Owners walk away with 118M after how many decades of being in business?....not very impressive. Wonder if that includes the ammunition side of the business?
 
Just wait till you see their new product lines.:)

Cerberus owns Bushmaster, too, FYI.

I think you folks will see a new direction and some clever new stuff, some old ides refreshed and some new ideas that will vault them and their sister (BRI) right to the top of several categories of small arms.

OP
 
I think this will ultimately be good for remington and the industry. Remington has been plodding along, deeply in debt. I think in the next few years you'll see remington spinning out it's non-core businesses. Maybe they'll start embracing modern manufacturing techniques, outsource more, advertise more, and make greater inroads into the competition and tactical scenes.

Cerberus is in this to make money. To do that they'll need to increase the value of remingtons products, and decrease the costs.

I think the assumption that because they were bought by a private equity group they'll suddenly start making die cast recievers in china isn't true.

(Although I'd love to see them shift production of low involvement parts to low cost countries)

atek3
 
Have they moved Bushmaster production elsewhere? If not, then Remington might stay here. Hopefully, these people realize the value of a rifle with "MADE IN U.S.A." stamped in the barrel.
 
Cerberus is reportedly also interested in buying Chrysler from Daimler-Chrysler and trying to turn it around.

Jim
 
KC their purchase of Bushmaster was fairly recent so give it time before we guess at Remingtons fate by looking at BM.

Maybe they'll start embracing modern manufacturing techniques, outsource more, advertise more, and make greater inroads into the competition and tactical scenes.
Click to expand...

By modern manufacturing techniques do you mean leaving a rough finish on the product to cut costs, and speed production? Reminton advertises quite a bit for a gun maker BTW. The outsource more part really bothers me. If you want to see quality slip by sending manufacturing to India where they will pay employees bottom dollar to churn out a product as fast as possible, while laying off long time American workers and taking yet another great American company overseas into foreign hands. Well that just sounds swell doesnt it? I shudder at the word tactical anymore, and the thought of Remington shifting production to more couch commando goodies and leaving their core base makes me shudder even more.

We will just have to wait and see where this goes. I guess I am just being a chicken little when I say this soes not feel good to me.
 
Although I'd love to see them shift production of low involvement parts to low cost countries
Click to expand...
Saving a few bucks now is going to destroy this country in the long term. Won't take much for the rest of the world to destroy us, simply by stopping the cheap imports. And if we cannot even make our weapons to defend ourselves with, then we're screwed, big time. We need to follow Hamilton's advice, and put in some protective tariffs to protect ourselves. We have a duty to protect ourselves and our interests, not our enemies' interests.
 
Forget it... I forgot about the first rule of arguing on the internet.

Rah Rah, tariffs good, imports bad...

return to your regularly scheduled episode of Lou Dobbs.

atek3
 
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