Breaking News: Remington Arms Sold in $370 Million Deal
From an Associated Press story in the International Business Times: _The 191-year-old gun maker was purchased Thursday by Cerberus Capital...
From an Associated Press story in the International Business Times:
_The 191-year-old gun maker was purchased Thursday by Cerberus Capital Management. Cerberus is buying Remington for about $118 million and taking on its $252 million in debt.
While Cerberus officials said they saw “tremendous value” in Remington, they indicated little else about the direction they will take the company. . . .
After several years of slumping earnings, Remington posted profits of $107.6 million last year on sales totaling $446 million, a nearly 9 percent jump from 2005, said Remington Chief Executive Officer Tommy Millner. . . .
“We see this sponsorship as an opportunity to enhance our production capabilities and product offering and further our growth both domestically and internationally,” he said.
Cerberus has assured Remington that no staff cuts are planned, Remington spokesman Al Russo said.
“It’s just a change in ownership,” he said. “Right now, there is no anticipated change in employment for anybody.”
Nevertheless, Cerberus has made tens of billions of dollars worth of corporate acquisitions in recent years, earning a reputation for taking troubled firms and reworking them into profitability. Those changes have often involved layoffs and asset sales._