Clayton & Dubilier acquires Remington Arms Company
Overview
Remington Arms, a leading manufacturer of sporting rifles, shotguns, ammunition, and related products, was acquired by E.I. DuPont de Nemours & Co. during the Great Depression to provide working capital. Over the decades, Remington had grown to over $400 million in sales, becoming the top name in sporting arms. However, as DuPont shifted focus to its core industrial chemical consumables business, Remington no longer fit within its portfolio.
Challenges
Several factors complicated the sale of Remington:
Corporate Disconnect: DuPont had divested its gunpowder and explosives operations, which reduced its direct connection to Remington.
Lack of Focus: As Remington no longer reported directly to DuPont’s senior management, it faced missed opportunities in the market.
Uncertainty of Sale: Despite being identified as a potential sale candidate by Valufinder, DuPont was unsure of its plans for Remington for several years
Solution
Valufinder took the initiative to explore the sale of Remington and engaged in strategic discussions:
Target Identification: Remington was identified as a “corporate orphan” early on, and Valufinder proactively approached both DuPont’s corporate development office and Remington’s senior management.
Buyer Screening: Valufinder discreetly evaluated several Private Equity firms and selected Clayton & Dubilier as the most likely buyer due to the personal interests of their senior partners.
Facilitation: Once DuPont decided to sell, Valufinder swiftly arranged meetings between the seller and buyer, leading to a smooth transaction.
Outcome
The sale of Remington Arms to Clayton & Dubilier was successfully completed, showcasing Valufinder’s hallmark qualities of initiative, persistence, expertise, and facilitation.