Remington Arms Co. Inc. has agreed to be acquired by private equity firm Cerberus Capital Management LP for $118 million.
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.

In a statement, the companies said 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.

“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,” said Tommy Millner, CEO of Remington. “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.”

Millner added, “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).”

“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.

The company expects the transaction to close in June 2007.

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.

Cerberus Capital is one of the largest private equity investment firms in US. It recently sold the Fila brand to Fila Korea, but continues to retain ownership of Cloudveil Mountain Works Inc. and Motionwear, Inc. In the retail space, it also owns Mervyn's.