The Remington Arms Company Sold by E. I. Dupont De Nemours & Company, Inc.

Confidential divestiture of corporate orphan satisfies objectives of buyer and seller...

Dupont had purchased Remington in the early 1930s when Remington needed working capital because of the Great Depression. Remington, the country's leading manufacturer of sporting rifles, shotguns, ammunition and related products, was a major customer of Dupont's gunpowder operations. However, in the early 1980s, Dupont, a $40 billion manufacturer of industrial disposables, had divested its gunpowder and explosives operations and the direct connection with Remington, a manufacturer of consumer durables, had been severed.

Remington had grown to approximately $400 million in sales by the 1990s, and was the number one name in selling sporting arms and related products to the retail customer through multiple channels of distribution. However, the company no longer reported directly to the parent's senior management and was missing opportunities in the marketplace because of a lack of resources. By 1994 Dupont had decided to sell Remington, as part of an effort to narrow the parent's focus on its core industrial disposable business.

Valufinder was persistent and stayed in touch with me year-in and year-out until I was ready to do something. They asked me the right questions and never were pushy. They listened to our situation, went back to their offices, and did their homework. They found for us the right buyer. Valufinder arranged the introduction and help facilitate the negotiations through some difficult periods. We wouldn't have found this buyer without them. B. R. Brown
President (Retired)
The Remington Arms Company

Valufinder had identified Remington as a corporate orphan in 1984 and believed it was just a matter of time before Dupont would decide to sell. Valufinder contacted Dupont's corporate development office about the possibilities of selling. Early conversations were inconclusive, because Dupont was not sure what direction it wanted to take. After several years, Valufinder then opened direct communication with Remington's senior management. Valufinder had on-going conversations and meetings with Remington's chairman for several years prior to Dupont's decision to sell.

As soon as it became apparent that Dupont was reconsidering its ownership, Valufinder, on its own initiative, carefully examined the acquisition criteria of a number of large and experienced Private Equity groups. Less than a handful of carefully screened buyers were selected and discreet conversations enabled us to assess which buyer had the highest probability of closing this type of transaction. We were able to determine that one buyer in particular, Clayton & Dubilier, because of the personal interests of senior partners, had the greatest likelihood of closing a deal.

In 1994, when Dupont finally decided to sell Remington, Valufinder got the call and was able to quickly arrange a meeting between the seller and the buyer. The transaction was quickly consummated. For Valufinder this transaction - from initial identification to closing - took nine years. Initiative, Persistence, Expertise, and Facilitation are all Valufinder's traditional hallmarks.

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