Sturm, Ruger and Company has signed on the dotted line to buy the assets of US-based arms manufacturer Marlin Firearms from Remington Outdoor for USD 30.00 million.
The transaction has been accepted by the vendor and approved by the US Bankruptcy Court for the Northern District of Alabama.
Ruger plans to finance the deal, which is due to complete this month, using cash on hand.
However, the acquisition does not include Remington’s firearms, ammunition and other brands.
Remington’s facilities and real estate are also excluded from the purchase.
Following the deal, Ruger will begin the process of relocating the assets to its existing manufacturing locations.
Headquartered in North Carolina, Marlin makes a range of semi-automatic, lever-action and bolt-action rifles for customers throughout the US.
Its products include the Model 39A, the Model 336 and the 308 Marlin Express.
Established in 1870, the group has around 500 employees on its books.
In July 2020, Remington filed for Chapter 11 bankruptcy for the second time in over two years, having previously entered proceedings in March 2018.
At the time, the Wall Street Journal noted the company had been unable to find a buyer and was struggling with debt.
Ruger’s president, Chris Killoy, said: “The brand aligns perfectly with ours and the Marlin product portfolio will help us widen our already diverse product offerings.”
Based in Connecticut, the purchaser manufactures firearms from facilities in Newport, New Hampshire and Arizona, among other locations in the US.
Its offerings include rifles, shotguns and revolvers, as well as titanium and ferrous investment castings for customers in the sporting goods and military segments.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been just six deals targeting small arms, ordnance and ordnance accessories manufacturers announced globally since the beginning of 2020.
In the most valuable of these, US-based Axon Enterprise announced plans to raise USD 276.00 million through an underwritten public offering.
© Zephus Ltd