This is major news. Cerberus Capital Management, which owns Remington purchased Bushmaster last year. They seem to be consolidating the American firearms industry! Marlin in turn owns H&R 1871, Inc., makers of single shot firearms.
My instincts tell me this cannot be good for consumers. I would not call bushmaster and remington competitors, but remington and marlin are. Less competition usually means higher prices.
From the outdoorwire’s newsletter (which reads as a press release):
The Outdoor Wires has learned that Remington Arms of Madison, North Carolina has acquired another of America’s longest-operating firearms companies, Marlin Firearms of North Haven, Connecticut.
This acquisition also adds H&R 1871, Inc. the Gardner, Massachusetts based manufacturer of single-shot rifles and L.C. Smith shotguns to the Remington line. Their single shots, marketed as Harrington & Richardson and New England Firearms make H&R 1871 is the largest manufacturer of single shot rifles and shotguns in the world. That company was acquired by Marlin in November of 2000.
Tommy Millner Remington’s CEO, says, “I am pleased to announce that Marlin’s well known brands with a long heritage of providing quality rifles and shotguns to hunters and shooters around the world will join the Remington family. The opportunity to combine two historic U.S. based companies with such storied and proud histories, is both challenging and exhilarating.”
“We look forward to working with Bob Behn, a well respected member of our industry. He will remain as president of Marlin, charting a course of further growth and operational improvement,” Millner continued.
With this acquisition, another longtime family-owned firearm company comes under a corporate umbrella. And that umbrella (Remington Arms) is part of a still larger umbrella, Cerberus Capital Partners. Today, Cerebus owns significant segments of the firearms market in every category except handguns.
Closing of the transaction is subject to certain customary conditions, including regulatory approvals. Credit Suisse acted as financial advisor to Remington with respect to this acquisition. Duff & Phelps Securities, LLC, a unit of Duff & Phelps Corporation (NYSE:DUF), initiated the transaction, assisted in the negotiations and acted as exclusive financial advisor to Marlin.
Frank Kenna III, Marlin’s Chairman, said, “Marlin has been a family run business since 1924 and through a number of important steps, we have grown it into the company it is today. We knew it was time to find the right partner for Marlin to ensure our brands maintain their leadership positions and move into the next century.”
Mr. Kenna III continued, “We believe Remington’s commitment to the industry, shooters and hunters alike, combined with their resources from a manufacturing and sales and marketing position, will reinforce the confidence, hard work and dedication that our employees and management have put into our brands.”
E. Scott Blackwell, Remington’s President of Global Sales/Marketing and Product Development, said, “The history of our two companies in innovation and meeting the needs of hunters and shooters around the globe, combined with the opportunity to further develop the Remington, Marlin, H&R, NEF and LC Smith brands, is not only beneficial to the Company and our channel partners, but especially to our to the end customer. And it is these customers and our employees that have contributed to the success and longevity of these brands.”
No actual financials are available for Marlin, but the family-owned company employs 575 and is estimated by Hoover’s/D&B to have annual revenues of approximately $28.3 million. When added to Remington’s sales, the combined companies will have revenues approaching a half-billion dollars. Additionally, the addition of Marlin/H&R 1871 will give Remington the distinction of being owner of the world’s largest producer of single shot rifles and shotguns as well as the only manufacturer of both firearms and ammunition products in the United States, and Cerberus Capital Partners ownership of the largest holding of firearms companies in the United States.