Here’s some industry-shaking news . . .
Beretta Holding S.A. reported acquiring 1,250,100 shares of Sturm, Ruger & Co., Inc. common stock, representing 7.735% of the outstanding shares based on ~16,162,030 shares outstanding. The aggregate purchase price for those shares was approximately $45.9 million, and the shares were purchased with working capital.
That should be more than enough to get Beretta a seat or two on Ruger’s board. Beretta, if you’re unaware, is the oldest firearms maker on the planet, founded almost 500 years ago (the company will celebrate its quincentennial next year). Beretta also owns other brands you know such as Benelli, Stoeger, Franchi, Steiner, Burris, Tikka, and Sako among many others.
The obvious question, then, is what Beretta’s long term intentions are.
The filer states it does not currently intend to seek control of Sturm Ruger but plans to engage in discussions with the company’s management and board about the business and potential operational or strategic collaborations. The filer also reserves the right to buy more shares, sell holdings, or enter into hedging or other transactions in the future.
The key word there, of course, is “currently.” Much more on this to come. Watch this space.
As Artie Johnson would say, “Verrry interesting…”.
I disagree with the libertarians on this issue. President Teddy Roosevelt was correct. These mergers must be stopped. And the companies broken up.
And don’t compare ruger buying up the bankrupt Remington.
Also why is a foreign company allowed to purchase an American weapons manufacturer?
Do those that hate the so-called military industrial complex support this?
Sounds innocuous until Beretta sells out to the?????
Mission-Critical USA Manufacturing should be exempt from foreign takeover.