Should Vista Outdoor or Olin Buy Remington's Ammo Business?

Remington Arms, the oldest gunmaker in America, was forced to file for bankruptcy after its private-equity owners put the company under a heavy debt burden, making the guns and ammo manufacturer incapable of benefiting from the massive turnaround underway in the firearms market this year.

Now, Remington is looking to sell off its ammunition business and has accepted a stalking horse bid of $65 million from JJE Capital, the private-equity firm that owns Palmetto State Armory, a South Carolina-based firearms manufacturer.

A stalking horse bid sets the stage for competing offers, so if other buyers are interested, their bids will need to be higher or better. It's a perfect time for Vista Outdoor (NYSE: VSTO) and Olin (NYSE: OLN) to consider stepping forward.

Source Fool.com