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Barrett Sells To The Aussies

In what I’m sure will be the talk of the SHOT Show tomorrow (and tonight), Barrett Firearms was acquired by the Australian company NIOA Group. This is a 100% acquisition. An email announcing the sale was sent out at noon today.

From the announcement:

In announcing the deal, NIOA Group CEO Robert Nioa said the two family-owned companies came together out of a shared commitment to quality, innovation, loyalty, and mission.

“NIOA’s association with Barrett dates back to 2008. We have been inspired by the story of Barrett and admire what Ronnie, Chris and the family have built over more than four decades,” Mr. Nioa said.

“It’s been a story of hard work, perseverance, and purpose culminating in the delivery of critical capability for the men and women of the US military and its allies around the world as well as exceptional products to law enforcement agencies and civilian markets.

“Together we share the same mission – combining our expertise and family business values will ensure Barrett carries on building the finest products in the world.’’

Mr. Nioa confirmed the company would continue to operate under the Barrett brand as a separate division within the NIOA Group alongside NIOA Australia, NIOA New Zealand, the Australian Missile Corporation and the group’s investment in joint venture company Rheinmetall NIOA Munitions.

All management and staff at the Murfreesboro manufacturing facility in Tennessee have been retained and production will continue as normal. Over time it is expected that manufacturing activities in Murfreesboro will be further expanded.

Financial terms of the transaction were not disclosed.

Mr. Nioa also announced two key leadership appointments – current Barrett President Sam Shallenberger has been promoted to the role of Chief Executive Officer while long-serving Barrett Chief Operating Officer Bryan James becomes President.

Ronnie Barrett and Chris Barrett will provide ongoing support as executive advisers to Barrett and the NIOA Group.

Barrett founder Ronnie Barrett said “Today marks the beginning of a new chapter in the Barrett story. Rob and the NIOA team have great respect for the legacy Barrett has created as the leader in long range precision rifles. It’s reassuring to know Barrett will be in good hands with a family-owned company that is focused on manufacturing and delivering world-class firearms and munitions to a global network.”

Robert Nioa, CEO of NIOA Group. From company website.

According to the FAQ released on the acquisition, customers really are not going to see much, if any, difference. The pricing will remain the same, the company will remain in Murfreesboro TN, management other than the Barretts will remain in place, the Barretts will serve as advisors to both Barrett and NIOA Group, and the name will remain the same.

The Barretts and NIOA Group have had a business relationship since 2008 and both are family run. The FAQ states that the Barretts saw this as a good fit and that it provides opportunity for growth.

It will be interesting to see what other “gossip” there is about the sale tomorrow at the show. If any is worth passing on, I’ll do so.

Smith & Wesson Selling Thompson/Center Arms

It looks like Smith & Wesson is planning to divest their Thompson/Center Arms subsidiary. According to the press release below, it will allow them to shift production capacity to the S&W line where sales are booming. Their last financial report issued in March said that sales were up 102% over the same quarter a year ago.

They say the company will remain committed to both hunting and long-range shooting. That said, I don’t see anything in the existing Smith & Wesson product mix other than big boomer revolvers that is really hunting-related. The only long-distance rifle is a T/C bolt action on a chassis.

They did not announce a buyer for the company but merely said they plan to divest it. Looking at potential buyers, I think Savage Arms might be the most likely candidate. They would probably ditch the T/C bolt rifles as they compete with their own but could add the Contender and Encore lines. I really don’t see RemArms as being able to buy them and I don’t see Ruger being that interested now that they have Marlin.

SPRINGFIELD, Mass., May 3, 2021 /PRNewswire/ — Smith & Wesson Brands, Inc. (NASDAQ Global Select Market: SWBI), a leader in firearm manufacturing and design, today announced that it plans to divest its Thompson/Center Arms brand. This decision is part of the Company’s broader strategic plan that will focus on its core Smith & Wesson brands.
Mark P. Smith, President and CEO of Smith & Wesson Brands, Inc., said, “Thompson/Center is a beloved hunting brand with a longstanding heritage, and we are committed to ensuring a smooth transition. Thompson/Center Arms’ loyal consumers should rest assured that they will continue to receive the world-class firearms, accessories, and customer service support that the brand has been known for since its founding in 1965. We remain fully committed to the hunting and long-range shooting market, and with this divestiture we will be able to now focus on these categories under our iconic Smith & Wesson brand. Additionally, this will allow us to immediately redirect manufacturing capacity to increase overall production volumes, allowing us to gain additional market share while simultaneously increasing profitability.”
At this time, a buyer for the Thompson/Center Arms brand has not been identified; however, the divestiture is not expected to have a material financial impact on the Company’s first quarter fiscal year 2022 results and the Company expects the divestiture to be accretive to the Company’s full year fiscal 2022 through higher overall production levels, increased margins, and lower marketing costs. The Company states that this decision will not result in a workforce reduction as its flexible manufacturing model allows it to repurpose capacity immediately to other areas without a headcount reduction.

If you want to buy them, they say to call them at 413-747-3448.