In an internal memo, Remington’s CEO called the unsolicited offer a ‘publicity stunt.’
Global Digital Solutions announced on Tuesday that they have filed a Form 8-K with the U.S. Securities and Exchange Commission to buy Remington Outdoor Co., also known as the Freedom Group, for $1.08 billion.
Remington has not yet made a public statement about the offer. Earlier this week, Grand View Outdoors obtained an internal memo from Remington Outdoor CEO George Kollitides to the company’s employees, in which he called the offer to buy the company a “publicity stunt.”
Remington is Setting Up Shop in AlabamaRemington is building a 500,00-square-foot manufacturing facility in Huntsville, Ala. that will employ up to 2,000 workers.
“A small, unknown investment entity publicly announced its desire to acquire the Remington Outdoor Company. If this wasn’t disruptive to our employees and customers, we would not acknowledge the news and recognize it for what it is: a publicity stunt from an agenda-driven group with no credible financing options.”
Global Digital Solutions is a firm that specializes in cyber arms manufacturing and security consulting. Their CEO, Richard J. Sullivan, said that the proposed merger will help the company position itself as a leader in the cyber arms industry.
“In this dynamic environment, we see enormous opportunity to consolidate this market with a program of targeted acquisitions, including the proposed Freedom transaction,” Sullivan said in a press release announcing the offer.
The Freedom Group’s owner, Cerebus Capital Management, has been trying to sell the company since the 2012 massacre in Newtown, Conn. The shooter, Adam Lanza, used a rifle made by Bushmaster, a subsidiary of the Freedom Group. Despite the Freedom Group’s record sales last year, Cerebus has been unsuccessful in selling the company. Whether or not GDS’s offer to buy the Freedom Group is legitimate, it likely will not happen, given that Remington recently announced plans to build a huge manufacturing plant in Huntsville, Ala. that will create 2,000 jobs in the area.
AL.com reported that Alabama’s state leadership said they don’t believe the merger will happen.
“Our Department of Commerce has been in direct contact with senior management at Remington, and they have been clear with us that there is no acquisition negotiation underway between Remington and Global Digital Solutions,” said Jennifer Ardis, press secretary for Gov. Robert Bentley.
Remington is one of the largest gun manufacturers in the world. According to AL.com, the company recorded a $1.25 billion to $1.28 billion in net sales last year.
Do you think Global Digital Solutions has a shot at acquiring Remington?