Remington Acquires Dakota Arms (and Nesika Bay)
Remington Arms Company, Inc. through its fully owned subsidiary DA Acquisitions LLC, has entered into a purchase agreement to acquire certain assets of Dakota Arms, LLC including the Dakota, Nesika Bay Precision, Miller Arms, and Dan Walter brands. The transaction closed on June 5, 2009.
This is the latest major acquisition by Remington Arms, which acquired Bushmaster Firearms, Marlin Firearms, and DPMS in 2007. Remington Arms is owned by Cerberus Capital Management, a private holding company. The acquisition of Dakota Arms is another example of the increasing consolidation of the American gun industry. Dakota Arms had suffered from over-ambitious growth plans and its revenues failed to meet investors’ expectations as Dakota never really developed a strong customer-base for its premium hunting rifles. Dakota tried to become the “Lexus/Mercedes” of the rifle market, but the plan didn’t work. Dakota’s rifles were much more expensive than Remington or Browning products, yet lacked the accuracy and craftsmanship of the high-grade, true custom rifles. “Factory rifles at custom rifle prices” was not a good business model.
Established in 1982 and headquartered in Sturgis, South Dakota, Dakota Arms manufacturers custom and semi-custom rifles for the sporting markets. The Dakota brands include Nesika, Miller Arms and Dan Walter. Nesika Bay Precision actions (at one time) were highly respected for their engineering and build quality; Miller Arms is known for the reliability and performance of its single-shot actions and custom rifles. Dakota Arms is based in the Black Hills of South Dakota and currently employs 35 people.
“I am pleased to announce that Dakota Arms is joining Remington and the Freedom Group of companies,” stated Ted Torbeck, CEO of Remington Arms Company, Inc. and Freedom Group Inc. “Dakota Arms is an icon within the industry and its fine products exemplify quality, craftsmanship and attention to detail. Dakota is the perfect compliment to our industry-leading family of brands. We look forward to continue to develop and expand the Dakota brand and thank all its employees for their continued dedication and success of Dakota Arms.”
