Remington Arms Being Acquired

Written by Administrator

Thursday, 05 April 2007

The Remington 870 is the best selling shotgun on the market. 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 acquisition includes the assumption of all of Remington’s liabilities and product lines. Remington Arms is the #1 producer of shotguns and rifles for U.S. domestic sales, according to BATF records. The acquisition gives Cereberus two gun companies, Remington Arms and Bushmaster. “This transaction is an acknowledgement 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, Remington’s CEO. “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.” “This agreement will also fuel the research and 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 or our Armed Forces with our M24SWS Sniper Weapon System,” Millner said. Ray Murski, owner of Murski-Breeding Sales Co. in Dallas is responsible for Remington sales in a 20 state area. “I think it is a great move for Remington,” he said. “They are going to leave management where it is and everyone seems to have a high comfort level with the new owners.” With no more split ownership, Murski felt the move would be good for Remington’s growth. “We have had a few price increases in the last few years because of the petroleum industry’s rising costs,” he said. “We should be able to keep prices stable for at least a year.” The company expects the transaction to close in June of 2007.

Last Updated ( Thursday, 05 April 2007 )

 

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