In my email this morning before 8am was a notice that Vista Outdoor had a filing with the Securities and Exchange Commission. It turns out it was their press release on their successful bid for the ammunition business of Remington.
Here is what they are saying, in part, about their winning bid for Remington’s ammunition business:
“Remington ammunition and accessories have a storied role in America’s sporting heritage, with a legacy dating back to 1816,” said Chris Metz, Vista Outdoor Chief Executive Officer. “We are excited and honored to add the iconic Remington brand and green box to Vista Outdoor’s portfolio of ammunition brands, and Remington accessories to our portfolio of Hunting and Shooting Accessories. The Remington brand is beloved by hunting and shooting sports enthusiasts everywhere and we look forward to restoring it to greatness by leveraging Vista Outdoor’s scale, manufacturing infrastructure, distribution channels and Centers of Excellence.
“We see a clear path to value creation. With our deep expertise and resources, we can transform Remington’s ammunition and accessories businesses to create a more efficient, profitable and sustainable operation. At the same time, by rescuing the Remington ammunition businesses from bankruptcy, we will protect hundreds of jobs, support wildlife and habitat conservation and ensure that hunting and shooting sports enthusiasts can continue to purchase their favorite ammunition and accessories. We look at this acquisition as a means of better serving millions of consumers with the products they love from one of the country’s original and best-known brands, while furthering Vista Outdoor’s mission of being a powerhouse of passionate outdoor sports and recreation brands,” Metz added.
The Vista Outdoor bid was $81.4 million. For that, they will get the Lonoke, Arkansas manufacturing plant plus “intellectual property, including the Remington brand and trademarks.” They will be paying for it with cash on hand plus their credit line. The deal will close early in the 3rd Quarter of 2021.
They noted that Remington had $200 million in ammunition sales for 2019.
Of course, this is all dependent upon the approval of the US Bankruptcy Court for Northern Alabama in their hearings on Tuesday, September 29th.