Cerberus, the financial group that owns Remington and the other members of the former Freedom Group, have met with no success in selling the company, an effort that began due to political pressures from its investors. The Wall Street Journal reports:
Cerberus Capital Management LP told its investors Friday that it has created an avenue for them to sell their stakes in a gun maker that the private-equity firm has been under pressure to divest since the Sandy Hook school shooting in 2012.
Cerberus sent a letter to its investors, which include pension funds and endowments, telling them that it has separated Remington Outdoor Co., the maker of Remington and Bushmaster rifles formerly known as Freedom Group Inc., from its funds and will allow any investor wishing to cash out of the company to do so, according to a person familiar with the letter.
Remington will use the proceeds from a 2013 debt sale to pay investors who choose to divest their stakes, the person said.
Cerberus said in the letter that the company’s value, including debt, was about $880 million, the person said.
The WSJ article references a somewhat more politically charged New York Times article.
Remington has been beset by so many issues over the past few years that it is hard to tell where the financial trials end and the product stumbles begin. Hopefully the financial reorganization will bring a second wind to Remington, but only time will tell.
Thanks to Daniel for the tip.