Beretta targets 30% stake in struggling US gunmaker Sturm Ruger
Beretta Holding, the world's oldest firearms maker, is pushing to expand its control over US rival Sturm Ruger. The Italian firm now wants to raise its stake from just under 10 percent to 30 percent. This follows a sharp decline in Sturm Ruger's share price since late 2021. Beretta Holding has offered to buy an additional 20 percent of Sturm Ruger's stock in an all-cash deal. Shareholders would receive $44.80 per share, well above the current trading price of around $40. The US company's shares have plunged by over 75 percent since their peak in late 2021, when they hit roughly $162.
Sturm Ruger's decline stems from falling demand after the pandemic-driven firearms boom. Dealers now hold excess stock, while higher interest rates and industry overcapacity have added pressure. Weaker quarterly results and regulatory uncertainty have also weighed on performance.
Beretta has already taken steps to gain influence. Last month, it launched a proxy fight to place four of its own directors on Sturm Ruger's board. The Italian group also asked Sturm Ruger to drop its poison pill defence, which would let the tender offer go directly to shareholders. Previously, Sturm Ruger dismissed Beretta's moves as a 'creeping takeover' attempt.
With nearly €1.7 billion in sales last year, Beretta sees the US as its most important market. A larger stake in Sturm Ruger would strengthen its position in the world's biggest firearms industry. Beretta's bid comes as Sturm Ruger's stock remains far below its 2021 highs. If successful, the deal would give Beretta significant influence over one of America's largest gunmakers. The outcome now depends on shareholder approval and Sturm Ruger's response to the offer.
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