Remington was considered a low-cost producer with capital expenditures of approximately one percent of revenues. Production was mainly outsourced to low-cost Far East suppliers, particularly in mainland China.Therefore, any synergies between the two companies would be limited to administration, purchasing and distribution, with estimated annual savings of approximately $23 million. Rayovac also planned to use its established international distribution network to expand the presence of Remington products outside North America, which accounted for 64 percent of that company's sales in 2002.