Remington Arms Co. Inc. has agreed to be acquired by private equity firm Cerberus Capital Management LP for $370 million. The purchase priced includes $118 million in cash as well as the assumption of $252 million of debt, including a revolving credit line and subordinated notes.
The transaction is expected to strengthen Remington's ability to grow its leadership position in shotguns, rifles and ammunition in the U.S. and provides additional capital to further develop its market presence internationally. The transaction is expected to close in June.
“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,” said Tommy Millner, CEO of Remington.
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).”
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 and Motionwear. In the retail space, it also owns Mervyn's.