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Remington to Acquire Marlin Firearms

Discussion in 'Uncategorized Threads' started by Joe Potosky, Dec 26, 2007.

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  1. Joe Potosky

    Joe Potosky Well-Known Member

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    Remington to Acquire Marlin Firearms

    MADISON, N.C., Dec 26, 2007 /PRNewswire via COMTEX/

    -- Remington Arms Company, Inc. ("Remington" or "the Company") the only manufacturer of both firearms and ammunition for Hunting, Law Enforcement/Security, Government & Military applications in the United States, today announced it has entered into a definitive agreement to acquire Marlin Firearms Company, Inc. ("Marlin"). The transaction is expected to close by the end of January 2008.

    Marlin, headquartered in North Haven, Connecticut, also owns Harrington and Richardson (H&R), New England Firearms (NEF) and LC Smith brands of rifles and shotguns.

    Tommy Millner Remington's CEO, said, "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," Mr. Millner continued.

    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: 19.48, +0.50, +2.63%), 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."

    Marlin manufactures a wide range of long guns, from the historic Model 39 and 336 rifles, which are the oldest shoulder arm designs in the world still being produced, to the XLR Series, which are the most accurate lever action rifles in the world. Its lever action 22 repeater, now the Model 39, became the favorite of many exhibition shooters, including the great Annie Oakley.

    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 end customer. It is these customers and our employees that have contributed to the success and longevity of these brands."

    About Remington Arms Company, Inc.

    Remington Arms Company, Inc., headquartered in Madison, N.C., designs, produces and sells sporting goods products for the hunting and shooting sports markets, as well as solutions to the military, government and law enforcement markets. Founded in 1816 in upstate New York, the Company is one of the nation's oldest continuously operating manufacturers. Remington is the only U.S. manufacturer of both firearms and ammunition products and one of the largest domestic producers of shotguns and rifles. The Company distributes its products throughout the U.S. and in over 55 foreign countries. More information about the Company can be found at www.remington.com.

    About Marlin Firearms, Inc.

    Established in 1870, The Marlin Firearms Company's brands include Marlin, Harrington & Richardson, New England Firearms and L. C. Smith. Under its various brands, Marlin produces an array of lever action, bolt action, and semi-automatic rifles, a wide variety of break-open single shot shotguns and rifles as well as muzzleloaders and combo sets. The company maintains a corporate Headquarters and manufacturing plant in North Haven, Connecticut as well as a manufacturing facility in Gardner, Massachusetts.

    Forward-Looking Statements

    This press release includes "forward-looking statements" within the meaning of federal securities laws. Forward-looking statements give the Company's current expectations or forecasts of future events. These forward looking statements include expectations regarding (i) the proposed acquisition, (ii) the anticipated benefits of the acquisition and (iii) the timing of the proposed acquisition. The Company cautions that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by such forward-looking statements. Such factors include the demand for the Company's products, the Company's growth opportunities, and other risks detailed from time to time in the Company's reports filed with the SEC, including its Form 10-K Report for the fiscal year ended December 31, 2006.

    The Company assumes no obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise.

    Media Contact: Al Russo: (336) 548-8572

    SOURCE Remington Arms Company, Inc.
     
  2. Joe Potosky

    Joe Potosky Well-Known Member

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    Do you see the pattern....

    Cerberus Capital Management

    Acquired Bushmaster Firearms, Inc., from Windham, Maine native Dick Dyke for an undisclosed sum in April 2006, and purchased Remington Arms in April 2007.

    Under Cerberus direction, Bushmaster Firearms acquired Cobb Manufacturing, a well-respected manufacturer of large-caliber tactical rifles in August 2007.

    Cerberus also announced the acquisition of DPMS Panther Arms in December 2007.
     
  3. Shooting Coach

    Shooting Coach Well-Known Member

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    Alliant (ATK) has gobbled up a large part of the ammuntion and component industry. This has been good. If Cerberus loots and dumps these companies, ammo prices will soar even more, be harder to get, and many classic and useful firearms will no longer be made, further escalating firearms prices.

    We can only hope these folks have the gun culture's best interests at heart.
     
  4. Steve-CT

    Steve-CT TS Member

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    They don't.

    It will just get worse.

    Cerberus now owns Chrysler and Remington. Chrysler's new CEO just announced last week they are "operationally bankrupt" (direct quote)

    I better hurry up and buy a 336-CS in .35 Rem and an 1895 in .45-70 before the whole line goes to the "MAR-15" which will be the "Marlin AR-15" like Remington's "R-15" all over their website which is nothing more than a Bushmaster varminter with a Rem Real Tree camo pattern pasted all over it.

    They will just tool them to set up assembly runs for gov't and law enforecement and foreign military contracts. The civilian firearms industry will be insignificant in less than five years as our older shooters continue to die off and new shooters fail to supplant the ranks in sufficient numbers.

    The amazing thing about the status of the firearms industry today, there are TWO guns EVERYONE is slapping their brand logo on - the AR-15 rifle and the 1911, .45 ACP pistol! There was a time, not too long ago, you had to get a COLT for both! Colt has been on critical care life support for almost ten years now and no longer has regular production handguns in its line up. It's ironic to see Smith & Wesson and SIG along with a dozen other names rolling out their versions of AR-15s and 1911s! How Ironic!
     
  5. smokerz

    smokerz TS Member

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    Capitalism at work. Best stock up now. Cerberus will destroy Marlin and what's left of Remington...but at least they'll make a profit doing it. Just watch, Savage will be the next meat on their plate.
     
  6. Brian in Oregon

    Brian in Oregon Well-Known Member

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    Colt screwed themselves when they initiated an unneeded boycott of selling to 'civilians', and then neutered their rifles. They lost a lot of friends and like S&W, pissing off gunowners is something gun companies shouldn't do if they plan to stay in business.
     
  7. School Teacher

    School Teacher Well-Known Member

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    Here is my $.02 worth on this announcement.


    I have two Marlin 336's, both in .35 Remington, and love the rifle and the cartridge. I also have a Marlin 39AS. Lever guns feel good in your hands and are fun to shoot.


    The Marlin 336 and 39 would, IMO, cost a fortune to develop and produce if these fine guns were just being introduced. They are well designed, tough as nails, easy to clean and pretty to look at. Although they are not as accurate as a bolt gun, they are plenty accurate for their intended purpose.


    I don't deer hunt anymore but the old .35 Remington 200 grain soft point really put a hurt on a deer within 150 yards. The big .35 caliber hole always gave a good blood trail. However, I never had to track one more than a few yards.


    I don’t have a crystal ball but I believe that Cerberus will be a responsible owner and that the acquisition will be good for both companies. There is not a lot of overlap in their product lines, except maybe in .22 cal rifles, where the new company will have to pick one model over the other. Some models may disappear if they are not paying their way but that’s business.


    The new company may benefit by combining purchasing, advertising, distribution and administrative functions.


    What was the condition of Remington or Marlin before the acquisition? Were they healthy companies of struggling to keep going?


    Let’s hope for the best out of Cerberus.
     
  8. pendennis

    pendennis Well-Known Member

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    Remington Arms was bought for $118 million. This included $240 million in debt, along with $360 million in assets. Cerberus can ill-afford to assume a quarter of a billion dollars in debt, and break the company. They couldn't possibly break up the company for the asset value. That's not how businesses work. Remington was having financial problems before Cerberus entered the picture. Cerberus evidently liked the future of Remington, or they wouldn't have invested. Cerberus wouldn't have approved Remington's purchase of Marlin Arms unless they saw a future for Marlin.

    It already looks like Remington is parlaying Bushmaster's AR-15 platform. Remington gets to mass market the Bushmaster product using Remington's marketing presence and logo. That's not the first time this has been done. Those "black rifles" are awfully popular, and provide a host of shooting and hunting options. They're being chambered in everything from .17 to 40 caliber, using the same basic platform. Why not take advantage of the technology?

    Cerberus, like other capital venture companies, looks at each business in isolation. Chrysler's problems are unique to Chrysler, and not indicative of how Remington or other business units are run.

    The firearms world wailed and moaned when the Winchester plant closed in Connecticut. However, most folks didn't pay much attention to the difficulties Winchester was having with labor costs there. The Winchester name and legacy now lives on, albeit in the Carolinas.

    Dennis
     
  9. Brian in Oregon

    Brian in Oregon Well-Known Member

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    Well, hopefully it will be in Cerberus' best interest to join the political fight against Sarah Brady.

    I', just hoping the upshot of all this is that bolt handles don't fall off of Marlins too.
     
  10. Shooting Coach

    Shooting Coach Well-Known Member

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    Dear Dennis

    One must hope! Remington, Marlin and Bushmaster all make "niche" guns. Immensely popular, handy, bug free, and in great calibers. A day of no more 870's, 1100's, or 336's would not be a good day.

    OTOH, a new mainstream AR-15 in a hunting caliber that did not have to be special ordered or hand built would be a good thing.

    A Marlin lever gun with a Remington 5-R match barrel and 40-X quality trigger sounds good.

    The H&R Classic Single Shot Target rifle in 22 Hornet, 25/35, 30/30, 30/40, 32/40, and 444 as well as 38/55 and 45/70 would be a hoot.

    A secure production base for entry target and field shotguns is definitely a good thing.

    Let us wish the best for Cerberus in 2008!
     
  11. halfmile

    halfmile Well-Known Member

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    I just remember what AMF did to Harley-Davidson.

    HM
     
  12. Steve-CT

    Steve-CT TS Member

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    Cerberus is betting the military, law enforcement and government contracts for AR based rifles and their derivatives will increase. They aren't in it for the
    love of firearms heritage - they're in it to convert a quick profit in the next three to five years and then dump it. Carry the debt - sell the hell out of the AR which is now in 101 flavors and when the civilian market dries up - be in a good position for tax payer funded gov't contract business - run a few million receivers and parts and when the poltical pendulum swings back to de-mobilization, stop the presses and dump the whole thing.
     
  13. valmet

    valmet TS Supporters TS Supporters

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    halfmile, i agree what a nightmare, 1971 or 72 until the 90's ?? when willie G. took over and turned it around. dennis
     
  14. Hipshot 3

    Hipshot 3 TS Member

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    Gee! I always thought Remington was a good judge of firearms! I guess not!
     
  15. Tripod

    Tripod Well-Known Member

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    A lot of speculation here. We will see.
     
  16. Steve-CT

    Steve-CT TS Member

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    Well, there is a place for the Marlin 336 and 1894/1895s, the model 60 and maybe some others. There is a place for the H&R Topper - (New England Firearms) that Marlin acquired a couple of years ago.

    Remington has better brand recognition and more universal appeal. Then again, so did Winchester and look where they ended up!

    The problem I see with companies like Remington and to some extent, Marlin
    is their catalogs are a mile wide and a foot deep with competing and sometimes, contradictory models. Russian, Turkish and Italian no-name imports fill the pages and web links in the catalogs of Remington and Marlin.

    Where is the logic in marketing the 1100 and/or 11-87 then turn the page and there is the Benelli look alike from Russia or Turkey in the middle of the same catalog? Where is the logic in marketing a new over under almost every year in Remington's catalog, turn the page and you're looking at Baikal side by sides?

    I've said this before and I'll say it again - two companies that really pulled it together were Mossberg and Savage. They dumped all the dead weight non selling, money draining models and focused on their niche and what they do really well - one or two gun designs - albeit served 101 ways, but still one or two gun designs.

    For Mossberg, that's the 500 and its spin offs the 535, 835 and 590 - let's face it they're really mostly the same gun. For Savage - it's the 110 base line gun and its variants. I see Mossberg messing up a little with these new rifles and even a Marlin .22 with a Mossberg logo on it. That won't help matters.

    Remington needs to focus on the 870, the 1100, the 700 and maybe two or three of its rimfires. The rest of the crap can all be dropped like a hot potato.

    Who needs a "710"?, a "798", a Turk semi auto shotgun when you have the far superior 1100 in the same catalog?

    Marlin under NEF - they have the old Topper and Pardner and the combos and variants which are excellent starter guns. .22 & .410 combo for a kid? Single shot? Nothing better.

    Rifles up to .45-70 on the same frame? Very versatile.

    Then they go and import these GARBAGE pump actions called "Pardner Pumps" from - China??? They are crap, they break. They hurt the company's reputation.

    Why go and buy a Pardner Pump when you can buy a Mossberg 500 or a Remington 870 for the same money?

    See my point? Where the hell is the logic in that?

    Plus Marlin does have good tooling. If you pick up a 336 or an 1895 and compare it to a recent vintage Winchester '94 made in the years before they closed the doors - you'll see exactly what I mean. I once picked up a new '94 from a display rack at a gun store about five years ago, opened the lever and it would not swing shut again! I quietly put the rifle back on the rack, lever out and all - and walked away muttering to myself "Winchester won't be around long making guns like that!" (and, I was right)

    Cerberus is hoping these cash strapped companies will turn around with the AR lines for the government. They installed former BUSHMASTER MANAGEMENT at Remington. What does that tell us?
     
  17. Brian in Oregon

    Brian in Oregon Well-Known Member

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    The reason Remington made the 710 and then later started selling the Russian shotguns is that they simply could not make the 870/1100/1187/700's cheap enough to sell at Mao Mart and other discount dealers. You can see what happens when the 700 has too many manufacturing shortcuts made - bent barrels, bolt handles that repeatedly fall off, etc.

    As for Marlin, believe it or not, they sold more guns than any other gun maker in the USA. Marlin also took shortcuts in later years. I was going to buy a Marlin 1897 Cowboy in .22LR, but the checkering was so rough and coarse that it looked and felt like someone used a chainsaw. It was the most horrible checkering I've ever seen on a factory gun. Marlin refused to entertain swapping stocks for uncheckered ones, but offered to sell me some for $150. I thought it was outrageous to have to pay an extra $150 to get rid of crappy stocks. I bought a 9422 instead. And I'm still waiting for their 1894CL or 1895 Cowboy to come out in .218 Bee. I guess that's never going to happen.
     
  18. shot410ga

    shot410ga Well-Known Member

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    That 336 in 444 has always been my favorit bush gun. I hope they do well together.
     
  19. Brian in Oregon

    Brian in Oregon Well-Known Member

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    I have an 1895 with a 22" barrel (the modern one on the 336 action). It's one of the early run guns, with the straight grip. The barrel is not Microgrooved. The first three years had conventional rifling, and the barrels were supposedly made by Douglas. These guns are quite accurate, and are sought by some. I topped mine with an old Leupold M8 3x scope. It's a fast, hard hitting brush gun.
     
  20. Steve-CT

    Steve-CT TS Member

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    With the quality of recent Remington guns being in the crapper - something needs to happen before they fold up, too!

    I never thought I'd ever see the day where people chime in on various gun boards telling about functioning problems with new, recently made, Remington 870s!!! Barrels and chambers so rough and so dull, they cause extraction problems!

    Have you seen the ribs on the new Remington shotguns in the past year? You can use them as a wood rasp! They have a cheese grater pattern. Horrible.

    I see the new Express and Wingmaster models on the new rack and walk over to the used rack and find 30 year old models in good shape for half the price and a much better gun! That is all I have been buying lately
     
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