Zachary, here is a copy of one of the articles I read from the Chattanooga Outdoors Newsletter.
"Remington Arms Sold
posted April 6, 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.
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 don't know what everybody else thinks about this trans action but when I look at the places where the offices of Cerberus is located, it doesn't appear to me to be a positive feeling about this sale. With management not familiar with firearms, what can the outcome be for management decisions? An acquisition company providing cost effective methods of production to an industry necessitating quality? Not if it cost money, it won't. I stand by my previous post until proven wrong and I sincerely hope I am.