(Reuters) – Vista Outdoor Inc said on Monday it would buy some parts of U.S. gunmaker Remington Outdoor Co Inc’s ammunition and accessories businesses for about $81 million.
Remington in July filed for Chapter 11 bankruptcy protection for the second time in two years as it faced financial troubles partly because some retailers placed restrictions on gun sales after school shootings in the United States.
“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,” Vista Outdoor Chief Executive Officer Chris Metz said in a statement.
Vista Outdoor was one among the many bidders in the auction process of Remington’s Chapter 11 bankruptcy cases pending in the United States Bankruptcy Court for the Northern District of Alabama.
Remington’s rifle was used in the Sandy Hook elementary school shooting in Connecticut in 2012 that killed 20 children and six adults, making it central to debates over gun policy.
Vista will also acquire Remington’s ammunition manufacturing facility in Lonoke, Arkansas and related intellectual property, including the Remington brand and trademarks.
Reporting by Nivedita Balu in Bengaluru; Editing by Maju Samuel