The bones of bankrupt Remington Arms continue to be picked clean as Sturm, Ruger (NYSE:RGR) announced it was acquiring the gunmaker's Marlin Arms for $30 million. Remington has accepted the offer and the bankruptcy approved the sale.

The sad end to a storied gunmaker

Remington was forced into bankruptcy despite a booming firearms market because it had been saddled with substantial amounts of debt by its private equity owners and faced lawsuits from the families of victims of the 2012 Sandy Hook school shooting.

Marlin 336 lever-action rifle

Image source: Marlin Firearms.

Although Congress enacted the Protection of Lawful Commerce in Arms Act to protect gunmakers from lawsuits for crimes committed by others, it carved out several exceptions, including knowingly violating federal or state laws on marketing of guns.

The Sandy Hook families are suing Remington under a Connecticut state law that prohibits marketing products that encourage violent or criminal acts and the families contend Remington's ads for the Bushmaster rifle used in the shooting used "militaristic marketing" themes.

When the Supreme Court refused to stop the lawsuit from proceeding, there was little choice left but for Remington to seek protection from the bankruptcy courts.

The gunmaker's assets are being auctioned off this week and on Monday, Vista Outdoor (NYSE:VSTO) won the bid for Remington's ammunition business, paying over $81 million.

Ruger president and CEO Chris Killoy said in a statement, "The value of Marlin and its 150-year legacy was too great of an opportunity for us to pass up. The brand aligns perfectly with ours and the Marlin product portfolio will help us widen our already diverse product offerings."

Once the transaction is completed, Ruger will transfer the Marlin assets to its own manufacturing facilities. The purchase is being funded with cash on hand and the sale is expected to be completed in October.