Not confirmed but here's what I've heard:
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 /PRNewswire/ -- 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."
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)." "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
http://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.
Forward-Looking Statements
This press release includes "forward-looking statements" within the
meaning of federal securities laws. Forward-looking statements give the
Company's current expectations or forecasts of future events. These forward looking statements include expectations regarding (i) the proposed sale, (ii) the anticipated benefits of the sale and (iii) the timing of the proposed sale. The Company cautions that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by such forward-looking statements. Such factors include the demand for the Company's products, the Company's growth opportunities, and other risks detailed from time to time in the Company's reports filed with the SEC, including its Form 10-K Report for the fiscal year ended December 31, 2006. The Company assumes no obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise.
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It's safer to hunt with Dick Cheney than to ride with Ted Kennedy
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