ILION — Global Digital Solutions, Inc. has made an unsolicited offer to buy Remington Outdoor Company for a little more than $1 billion, according to a release from the West Palm Beach, Fla., based company looking to increase its cyber-security and military-related products.
The company filed a Form 8-K with the Securities and Exchange Commission Tuesday offering to buy Remington, also known as Freedom Group, Inc. for $1.082 billion in cash and shares of Global Digital Solutions’ common stock.
A memo circulating to Remington employees from chairman and Chief Executive Officer George Kollitides said the proposition is a “publicity stunt from an agenda-driven group with no credible financing options,” according to the Grand View Outdoors blog.
The growth of the cyber-arms industry prompted the offer, said Global Digital Solution’s chairman and CEO Richard Sullivan in a news release.
“In this dynamic environment, we see enormous opportunity to consolidate this market with a program of targeted acquisitions, including the proposed Freedom transaction,” he said in the release.
The proposed buyout is one of three Global Digital Solutions has proposed. According to the release, it also is putting forward proposals for Digital Angel Corp and Applied Digital Solutions, both commercial technology companies.
Net sales for Freedom Group in 2013 were to be in the range of $1.25 billion and $1.275 billion, according to its 2013 Financial Guidance report released on Dec. 9, 2013.
Steps were being taken in November 2013 to finish a merger of Global Digital Solutions and Airtronic USA, Inc., an engineering company that produces cyber-arms and parts for such weapons.
Remington has a near-200-year-old manufacturing plant in Ilion and recently announced an expansion in Huntsville, Ala., that would support as many as 2,000 jobs.
A call to Sullivan and Teddy Novin, director of marketing and public affairs for Freedom Group, were not immediately returned.