Remington Outdoor Group Buys Back $175m Shares

Rob Curtis reports at Gear Scout that the Remington Outdoor Group (formally known as Freedom Group International) have borrowed $200 million from existing lenders and will use $175 million of that to buy back shares from existing share holders. Remington said …

I am pleased to report that on Thursday, December 12th, the Remington Outdoor Company (ROC), formerly known as Freedom Group (FGI), raised $175 million of add-on, term loan financing from our existing lenders.

The $175 million loan proceeds will be used to repurchase $150 million of shares from exiting investors, with the remaining $25 million in cash being placed on ROC’s balance sheet, which will be used to grow our business with capital equipment, facility and acquisition investments.

The lender will receive a minority stake in the company. Some groups have been pressuring Cerebus Capital, the private equity firm that owns Remington,  to sell the company but that has proved hard to do. Cerebus spent years buying up as many gun companies as they could to create a mega firm, which is a lot harder to sell than a bunch of smaller ones.

Steve Johnson

Founder and Dictator-In-Chief of TFB. A passionate gun owner, a shooting enthusiast and totally tacti-uncool. Favorite first date location: any gun range. Steve can be contacted here.


  • Gunhead

    I thought Cerberus sold off TFG after Sandy Hook?

    • Formynder

      If I recall correctly they tried to but were unable to get anyone to offer what they considered a fair price.

    • spencer60

      Nobody wanted to pony up for what they were asking.

  • Seth

    Please, please, PLEASE sell Marlin, at the very least.

  • spencer60

    This is typically of that jack-wagon Freedom CEO, Bob Nardelli,

    After almost destroying Home Depot, and actually doing it to Chrysler, he’s now in the process of ruining some of the oldest names in American manufacturing.

    Do you think that that $200 million could have been spent better places than buying back stock?

    How about using it to get some goodwill and move your plants out of New York? Or invest in Marlin and some of the other companies Freedom Group has left to die on the vine.

    This buy-back targeted at the stock owned by Cerberus Capital, the investment fund that holds a bunch of it.

    After Sandy Hook, the CA Teachers Retirement fund told Cerberus that they would pull their pension dollars unless Freedom Group was sold.

    Unfortunately for them, their contract doesn’t let them end their commitment because they want to be gun grabber shills.

    To keep them, and a few other groups happy, Freedom is buying their stock back from them, so that technically they aren’t ‘investing’ in a gun company.

    Stupid, but what do you expect given the ownership, the investors and the CEO?