BREAKING: Ruger to acquire Marlin Firearms for $30M
10-02-2020, 09:47 AM
#1
Nontypical Buck
Thread Starter
Join Date: Sep 2019
Posts: 1,846
BREAKING: Ruger to acquire Marlin Firearms for $30M
My IMMEDIATE take away from this is, bye bye Marlin Model 60
https://www.fool.com/investing/2020/...n-firearms/The bones of bankrupt Remington Arms continue to be picked clean as Sturm, Ruger (NYSE:RGR) announced it was acquiring the gunmaker's Marlin Arms for $30 million. Remington has accepted the offer and the bankruptcy approved the sale.
Although Congress enacted the Protection of Lawful Commerce in Arms Act to protect gunmakers from lawsuits for crimes committed by others, it carved out several exceptions, including knowingly violating federal or state laws on marketing of guns.
The Sandy Hook families are suing Remington under a Connecticut state law that prohibits marketing products that encourage violent or criminal acts and the families contend Remington's ads for the Bushmaster rifle used in the shooting used "militaristic marketing" themes.
When the Supreme Court refused to stop the lawsuit from proceeding, there was little choice left but for Remington to seek protection from the bankruptcy courts.
The gunmaker's assets are being auctioned off this week and on Monday, Vista Outdoor (NYSE:VSTO) won the bid for Remington's ammunition business, paying over $81 million.
Ruger president and CEO Chris Killoy said in a statement, "The value of Marlin and its 150-year legacy was too great of an opportunity for us to pass up. The brand aligns perfectly with ours and the Marlin product portfolio will help us widen our already diverse product offerings."
Once the transaction is completed, Ruger will transfer the Marlin assets to its own manufacturing facilities. The purchase is being funded with cash on hand and the sale is expected to be completed in October.
Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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I sure hope Ruger will continue to make the gorgeous Marlin lever guns, especially the stainless one.
https://www.fool.com/investing/2020/...n-firearms/The bones of bankrupt Remington Arms continue to be picked clean as Sturm, Ruger (NYSE:RGR) announced it was acquiring the gunmaker's Marlin Arms for $30 million. Remington has accepted the offer and the bankruptcy approved the sale.
The sad end to a storied gunmaker
Remington was forced into bankruptcy despite a booming firearms market because it had been saddled with substantial amounts of debt by its private equity owners and faced lawsuits from the families of victims of the 2012 Sandy Hook school shooting.Although Congress enacted the Protection of Lawful Commerce in Arms Act to protect gunmakers from lawsuits for crimes committed by others, it carved out several exceptions, including knowingly violating federal or state laws on marketing of guns.
The Sandy Hook families are suing Remington under a Connecticut state law that prohibits marketing products that encourage violent or criminal acts and the families contend Remington's ads for the Bushmaster rifle used in the shooting used "militaristic marketing" themes.
When the Supreme Court refused to stop the lawsuit from proceeding, there was little choice left but for Remington to seek protection from the bankruptcy courts.
The gunmaker's assets are being auctioned off this week and on Monday, Vista Outdoor (NYSE:VSTO) won the bid for Remington's ammunition business, paying over $81 million.
Ruger president and CEO Chris Killoy said in a statement, "The value of Marlin and its 150-year legacy was too great of an opportunity for us to pass up. The brand aligns perfectly with ours and the Marlin product portfolio will help us widen our already diverse product offerings."
Once the transaction is completed, Ruger will transfer the Marlin assets to its own manufacturing facilities. The purchase is being funded with cash on hand and the sale is expected to be completed in October.
Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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I sure hope Ruger will continue to make the gorgeous Marlin lever guns, especially the stainless one.
Last edited by Valorius; 10-02-2020 at 09:50 AM.
10-02-2020, 08:51 PM
#2
Nontypical Buck
Join Date: Oct 2009
Location: Kansas
Posts: 3,902
The word on the street is that Ruger is far more likely to recognize the critical market volume of the Marlin 60, and be content producing the number one and number 2 most popular rimfire rifle models of all time (the 60 and the 10/22 respectively). The Marlin 60 has outsold the Ruger 10/22 at nearly 2 to 1 for their life spans, Ruger has never been accused of being poor market analysts, so it’s silly to think Ruger’s purchase means an end to the Model 60.
10-03-2020, 08:14 PM
#3
Nontypical Buck
Thread Starter
Join Date: Sep 2019
Posts: 1,846
To the contrary, it is silly to discount the possibility.
Companies have bought other companies for the sole purpose of squashing competing products countless times through history. And Ruger is far from infailable. Old Bill did enormous damage to the comapny back in the late 80s and early 90s with his political statements and expressed views. So much for market analysis.
If the Model 60 goes bye bye, The 10/22's No1 competitor is gone, and they will sell far more of them (although a lot of companies are selling 10/22 clones nowadays).
Maybe Ruger will keep the model 60 around as a low cost option, but the word on the street on the sites i frequent is that the model 60 could very well be cancelled. Until Ruger makes an official announcement, anyone's guess is as good as your guess. It's downright silly to dismiss the possibility.
I personally like the 60, and would like to see it stick around.
Companies have bought other companies for the sole purpose of squashing competing products countless times through history. And Ruger is far from infailable. Old Bill did enormous damage to the comapny back in the late 80s and early 90s with his political statements and expressed views. So much for market analysis.
If the Model 60 goes bye bye, The 10/22's No1 competitor is gone, and they will sell far more of them (although a lot of companies are selling 10/22 clones nowadays).
Maybe Ruger will keep the model 60 around as a low cost option, but the word on the street on the sites i frequent is that the model 60 could very well be cancelled. Until Ruger makes an official announcement, anyone's guess is as good as your guess. It's downright silly to dismiss the possibility.
I personally like the 60, and would like to see it stick around.
Last edited by Valorius; 10-03-2020 at 08:21 PM.
10-04-2020, 05:36 AM
#4
Boone & Crockett
Join Date: Jan 2004
Location: Eastern PA
Posts: 12,745
I believe this will be a boost for Marlin. Having owned Ruger firearms they have a reputation for making good solid guns. I'd like to see the quality of the 1895 once Ruger starts making them.
The only thing I find sad about Remington going away besides them being an American Icon is their 700 and their tried and true workhorse the 870 shotgun. (that's the only Rem I now own and I have 2 of them)
The only thing I find sad about Remington going away besides them being an American Icon is their 700 and their tried and true workhorse the 870 shotgun. (that's the only Rem I now own and I have 2 of them)
