The largest gun manufacturer in the United States, Sturm Ruger & Co., has accused the parent company of Italian firearms firm Beretta of attempting a stealth takeover of the Connecticut-based business. This accusation is based on what Ruger describes as "self-serving demands," including purchasing stocks at discounted prices and seeking significant control on the board.
The CEO of Sturm Ruger, Todd W. Seyfert, responded on Monday to Beretta's proxy fight, which was initially reported by The Post on February 25. Seyfert labeled Beretta's actions as a veiled threat to engage in a full takeover and potentially start a hostile battle for control of the company.
Ruger, known for producing pistols, rifles, and revolvers such as the iconic 10/22 rifle, has faced a decline in sales following the pandemic. The company alleged that Beretta quietly accumulated a substantial stake in Ruger, continued buying shares during negotiations, and requested privileges that could violate US antitrust laws prohibiting unfair market dominance.
After a meeting between executives from both companies in December, Ruger clarified that Beretta's chairman hinted at a long-term plan to merge Ruger with Beretta but did not make a formal proposal. Beretta's chairman also expressed intentions to increase their position if Ruger resisted any changes.
Beretta, a 500-year-old company based in Italy's Lombardy region, has gradually acquired a nearly 10% stake in Ruger. In response, Ruger implemented a defense strategy known as a "poison pill" in October, flooding the market with new shares to deter a costly takeover and diminish the buyer's influence.
Beretta recently announced plans to nominate four new board members for Ruger after news of the proxy fight emerged. The nominees include individuals from Fernbrook Capital, Vista Outdoor, Ancora Holdings, and Inwood Capital.
While representatives of Beretta stated that they are not seeking control of Ruger's board, Ruger remains vigilant following Beretta's increased stake disclosure in October. Ruger's market value has decreased by over 40% in the last five years, standing at $581 million, while Beretta reported $1.7 billion in revenue in 2024.
Beretta, with a history of supplying weapons to Venezuela's military and national guard, has been exploring potential collaborations with Ruger to enhance operational efficiency and profitability. The Italian company already owns Stoeger, a manufacturer based in Maryland, as part of its efforts to expand its presence in the US market.
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