DOn't you just love the comments that CEO made?

ooof.
Cerberus is a monster not a sucker. They may fix Remmy or slice and sell, but suckers they ain't. Big, secretive, private equity they are.

Good chance they end buying Chrysler for a song...if so watch the fireworks.

Their Plant in Ilion will be closed down or seriously diminished in capacity and the only thing that will probably remain is the custom shop. They will probably increase the scale of importation of different brands as well. They brought it upon themselves and no one but the idiots they have running the show are to blame for it. Funny thing that 20 + Years ago when they made the decision to go with Walmart someone in a local gunshop said it was the beginning of the end. He was almost right.

quote:

NEW YORK (Reuters) — Private equity firm Cerberus Capital Management will buy closely held firearms maker Remington Arms for $118 million, the companies said Thursday.
As part of the acquisition of Remington, which makes guns for hunting and for police and military uses, Cerberus has agreed to assume $252 million of debt, including a revolving credit line and subordinated notes.

Copyright 2007 Reuters Limited.

That's the $370 million purchase price.

Remington Arms Company, Inc. one of the nation's oldest continually-operating firearms companies, is being acquired by an affiliate of Cereberus Capital Management, L.P. The $370 million dollar acquisition includes the assumption of all of Remington Arms Company, Inc.'s liabilities and product lines.

Remington CEO Tommy Millner released a statement characterizing the transaction as "an acknowledgment of the Remington tradition, its strong brand, and the excellent products built over 191 years…"

The acquisition gives Cereberus two gun companies, Remington Arms and Bushmaster. Sources familiar with both companies say Remington will quickly add an AR-style rifle platform to complement their M24SWS Sniper Weapon System while Bushmaster will likely add signature branded ammunition and products.

Remington also includes a total line of shotshell, centerfire, rimfire and handgun ammunition and manufacturing under the Remington and UMC brands. For many years, Remington has remained the number one producer of both rifles and shotguns in the US domestic market.

Credit Suisse Securities (USA) LLC provided financing commitment and advisor services to Cereberus in the acquisition, expected to close in June 2007.

We will have complete details and reaction to the acquisition in the Friday, April 6, 2007 editions of The Outdoor and Shooting Wires.

Now we can have Pre 07 Remingtons.

they make electric razors, right?

I want to see Hot Cores comments about this? Let's see how he spins this one . 252 million in debt.. whoever is responsible for that needs to be hung upside down

anyone that hasn't seen this coming has been blind at least.

Signs of it have been everywhere.....I'm surprised there isn't a complete bankrupsy notice!

Remington AND Bushmaster! Oooorah!

quote:

assume $252 million of debt

figure they'll have to "part it out" to realize any gain... or do they need to lose money?

I'd sure like to know what it feels like to have the ability to put my business into over $250 million in debt and still operate, but not actually do it.........

What amazes me is the fact that an operation completely capable of making a better product at an equal or even lower price could be started up from ground zero for less than 1/4 their outstanding debt.
Why would a company with such obvious financial prowess let themselves get wrapped up into a deal such as this?
I guess it boils down to simply the name in the firearms industry.............Nothing else would make any sense.

"A fool and his money are soon parted."

One has to wonder just how much they spent.....verses made on russian and yugoslavian imports!.......

At least the chairman of Cerberus is a gun-owner and hunter. The firm does not have a reputation for doing crazy deals. Who knows, maybe this one will work and we'll all be looking forward to owning a new Remington CRF rifle with a decent safety and trigger.

quote:

Originally posted by triggerguard1:
What amazes me is the fact that an operation completely capable of making a better product at an equal or even lower price could be started up from ground zero for less than 1/4 their outstanding debt.

The gun business maybe but probably not the ammunition piece.

The joint press release:

Remington Arms Readies for 3rd Century of Business by Entering into Definitive Agreement for Sale

Transaction Positions Company to Drive Manufacturing and Marketing Initiatives for Growth & Expansion

MADISON, N.C., April 5, 2007 – Remington Arms Company, Inc. the only manufacturer of both firearms and ammunition for Hunting, Law Enforcement/Security, Government & Military applications in the United States, 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 (which includes the assumption of all of Remington Arms Company, Inc.’s approximate $252 million of funded indebtedness related to the Revolving Credit Facility, 10.5% Senior Subordinated Notes due 2011 and other indebtedness as of such date) before transaction related fees and expenses.

The transaction will strengthen Remington’s ability to grow its leadership position in shotguns, rifles and ammunition in the United States and provides additional capital to further develop its market presence internationally.

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.â€

Remington’s extensive and all encompassing line of Shotshell, Center fire, Rimfire and Handgun Ammunition offerings is based on decades of ballistic innovation providing products under the Remington and UMC brands to customers around the world. For decades Remington has remained the #1 producer of Shotguns and #1 Producer of Rifles for US Domestic sales according to published BATF records.

Said Millner, “This agreement will also fuel the Research & Development of products that offer solutions to the needs of our customers worldwide, and provide further value to the user, whether hunting waterfowl with our new 105CTI Titanium receiver based shotgun or fighting terrorism as a member of our Armed Forces, with our M24SWS Sniper Weapon System (also used by many International Law Enforcement Agencies and Militaries).â€

“We look to the future with great optimism in terms of enhanced sales and marketing worldwide and additional new business development, while we continue to focus on building into our products the quality and reliability that has benefited our customers for close to 200 years.†stated Millner.

Credit Suisse Securities (USA) LLC acted as financial advisor to Cerberus with respect to its acquisition of Remington, in addition to providing a financing commitment in support of the acquisition.



The company expects the transaction to close in June 2007.

About Remington Arms Company, Inc.

Remington Arms Company, Inc., headquartered in Madison, N.C., designs, produces and sells sporting goods products for the hunting and shooting sports markets, as well as solutions to the military, government and law enforcement markets. Founded in 1816 in upstate New York, the Company is one of the nation’s oldest continuously operating manufacturers. Remington is the only U.S. manufacturer of both firearms and ammunition products and one of the largest domestic producers of shotguns and rifles. The Company distributes its products throughout the U.S. and in over 55 foreign countries. More information about the Company can be found at www.remington.com.
About Cerberus Capital Management, L.P.

Established in 1992, Cerberus Capital Management, L.P. is one of the world’s leading private investment firms with approximately $23.5 billion under management in funds and accounts. Through its team of more than 275 investment and operations professionals, 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. Cerberus is headquartered in New York City, with affiliate and/or advisory offices in Chicago, Los Angeles, Atlanta, London, Baarn, Frankfurt, Tokyo, Osaka and Taipei.

I sure hope they can turn it around.

Having owned a bunch of Remington rifles it is clear the accuracy potential has always been there, but one must question their corporate will to uphold such quality control issues given their recent products. A classic example would be their new model 798, a rifle I've yet to see. From all accounts I've read, quality of the finished product has been found lacking.
Imagine if G.M or Ford were held to such standards -where would our country be then? I wish all the best to Remington and hope to see them into their third century

quote:

Originally posted by buckshot:
Having owned a bunch of Remington rifles it is clear the accuracy potential has always been there, but one must question their corporate will to uphold such quality control issues given their recent products. A classic example would be their new model 798, a rifle I've yet to see. From all accounts I've read, quality of the finished product has been found lacking.
Imagine if G.M or Ford were held to such standards -where would our country be then? I wish all the best to Remington and hope to see them into their third century

Reming was the company the former management made it.....if they are not swept away there will be no changes......as I understand the sweeping has not begun.....it must happen to get them back in our trust.

The signs of poor management were so flagrant that I'm totally surprised they still exist and that anyone would actually buy them out.