[MAJOR NEWS] Freedom Group pulls plans for IPO!


WSJ Market Watch reports that the Freedom Group (Remington, Bushmaster, Marlin, AAC et. al.) have abandoned plans to go public …

Freedom Group gave no reason for withdrawing the IPO but the company has been struggling as demand for its key products slips. It posted a $6.7 million loss on sales of $744.3 million last year, down from a profit of $54 million and sales of $848.7 million in 2009.

Eric Wold of Merriman Capital, who covers firearms firms Smith & Wesson (SWHC 3.53, 0.00, 0.00%) and Sturm, Ruger (RGR 23.05, -0.04, -0.17%) noted that “the fastest growing part of the industry is handguns” and that Freedom “has none of it.”

He said “it is likely to see them make a move and acquire one of those two companies to put themselves in a better position for an eventual IPO.”

It is inconceivable to me that Remington is not working on bringing a sub-compact to the market. They would be crazy not to do so. Rather than buying a large public company, they could develop it in-house (like Ruger did with the Ruger LCP), buy the rights to a pistol developed overseas (like Springfield did successfully with the XD) or purchase a smaller company such as Para-Ordnance (to expand the Remington 1911 line) and/or Kel-Tec (sub-compacts as well as other innovative products).



Steve Johnson

Founder and Dictator-In-Chief of TFB. A passionate gun owner, a shooting enthusiast and totally tacti-uncool. Favorite first date location: any gun range. Steve can be contacted here.


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  • Matt Groom

    What they should do is a) bring back a classic handgun design by Remington that was never released, like the Model 53 (Think Model 51 .380, but in .45 ACP) which was actually adopted by the US Navy and Marines before WWI (The contract got canceled due to the war, and Remington got a contract to produce 1911’s) or b) produce an entirely new design which is unique and not like every other plastic fantastic, phony-baloney, rock-and-roll, good times pistol that’s already out there. Coming out with a 1911 has got to be the least intelligent thing they could have done, IMHO, and I figure the poor initial sales has finally got them thinking that, too.

  • Mert

    Really quite surprised to read this. I would have thought the ACR and the AAC acquisition would have provided a better bottom line. I wonder what division is bringing them down.

  • Lance

    They want to keep there money not really BIG NEWS.

  • Todd

    Since Cerberus Capital (a George Soros controlled entity) owns Freedom Group it is entirely conceivable that he wants to destroy these companies to fulfill his anti-gun agenda. Since they are not publicly traded he would have no fiduciary duty to shareholders and could do as he pleases. I smell a rat.

  • Billy Bones

    The ACR the public wants is not being offered at the price point everyone expected.

    It’s not a firearm worth north of 2k. It needs to be price competitive with the AR platform.

  • Ed

    Ruger (RGR) has a market cap of $430.95 million. That means buying it would cost in the neighborhood of $250 million in all likelihood. A quarter billion seems very unlikely, even for Cerberus.

    Smith (SWHC) has a market cap of $212.17, so you’re still looking at a $100 million cost to acquire. Plus, all of these transactions would get regulators sniffing.

    I agree with Steve. The best bet for Freedom Group would be to go after a smaller, private company. Or wait until Gaston passes and swoop in on Glock.

  • Anon

    The Analyst’s prediction seems unlikely to me:

    Ruger is raking in the dollars, consequently the stock price is pretty strong for a takeover. Current Market Cap is over $420 million (half the size of Freedom Group).

    S&W would be cheaper with a market cap of about $200 million, but they’re having profitability problems of their own…so what’s the point?

    Lastly, a smaller company wouldn’t be generating enough cash to matter to something the size of Freedom Group…

  • Other Steve

    The ACR is a JOKE. If anything that’s a money pit for them. I do agree that AAC and Rem .mil are the only profitable thin they have going. Is anyone surprised a company that offers nothing but mossy oak in their ARs is hurting? They are working hard towards Colt’s .mil first attidude that colt is trying to get away from.

    Their IPO has been up in the air for a couple years because they are hurting more than this article covers. I would be surprised if they even could buy another company without getting rid of something AAC and Marlin or something large like DPMS.

  • Bill

    The ACR has sold only in very small numbers compared to the AR15 market, and AAC is only a tiny piece of the company in comparison to the rest of the companies owned.

    Neither one of those will have much impact on them short term.

  • William C.

    So I’m guessing this means they won’t be lowering the price on the ACR?

  • Seraph

    Remington/Bushmaster will for sure have to lower the price of the ACR when Beretta releases their new modular assault rifle to the public or else they’re going to get swept under the rug.

  • Ed B.

    This was to be expected–people forget that Freedom Group is just a cover face for Cerberus Corp, the group that ran chrysler into the ground several years ago. The money they made dumping chrysler onto someone else was the initial funds for purchasing Remington who had been hurting for years after Kimber had talked their old floor manager into switching companies (but that’s a different story).
    However, this is the direct cause why, for the past 4 years, people have complained about low quality machining and backorders for DPMS or Bushies. Over extension by in house OEM. It’s a guarantee that when an R25 (or any reminton AR) hits the shelves, it’s using a combination Bushmaster and DPMS parts–all labeled Remington.
    This is why I haven’t bought ANYTHING Remington since Cerberus took over and why I refuse to buy anything from their subsidiaries.
    I hope Remington goes broke–I get to do the biggest “Told you so” victory lap of my firearms career.

  • Jeff

    hasnt been very good managment since they started buying up companys. I worked at DPMS when freedom group bought it. everything went down hill from there. BTW, DPMS used to produce a 1911, most everything they need to start up again was still there when i left. would be a simple thing to start cranking them out again.

  • Gary Gallo

    Remington is better off staying private. It look`s like more of a move for Freedom Group to cash out then anything. Gary Gallo, Securities Principal

  • Caseless

    Hopefully the ACR doesn’t flop like the Bushmaster M17 did. They need to enlarge their portfolio of current generation/Non-AR-15 tacticool platforms. Perhaps pay license fee to Kel-Tec, so Freedom group can produce and sell the RFB and KSG. Put a Remington or Bushmaster logo on each model.

  • PAT LEE

    I FEEL THATTHE BEST POLICY IS HONESTY…REMINGTON IS AWESOME AND PART OF AMERICA. THE UNFORTUNATE FACT IS THEY PRODUCE GREAT PRODUCTS AND I WOULD SAY THEY DID THE RIGHT THING WITH AR 15s AND 1911s AND MUCH MORE (MASADA) OR WHATEVER ACR, BUT BE WITH THE AMERICAN CONSUMER AND AT LEAST HAVE BETTER PRICE THAN ALL THE OTHER 20 OR SO AR15 AND 1911 MANUFACTURES. I COMMEND THE ARMS COMPANIES BUT GUYS OFFER MORE REALISTIC DEALS AND MAKE THE CONSUMER HAVE NO EXCUSE BUT TO BUY QUALITY AND GREAT PRICE WITH ACCESSORIES.

  • Southerner

    There is still a big hole in the 1911 market for a simple lightweight commander style alloy frame, readily available handgun. By simple I mean low fixed sights, conventional barrel bushing, recoil spring plug, functional beavertail grip safety and small thumb safety. A steel feed ramp in the frame would be icing on the cake.

    Ok Freedom Group get Remington moving!

  • TheAmdMAN

    @ William C.

    If they lower it I’ll pick one up…. Not before however..

  • Jared

    They should have just let Mag-pul manufacture them as the Masada. I got to hold Serial No. 0002 Masada and was actually one of the first 20 in the nation on the list pre-production. My dealer is good friends with the ppl at mag-pul and i actually got to meet some higher ups there. Mag-pul was pricing them around 18-1900 and their quality control is a LOT higher than remington. I guess, depending on options, 2000 may be “high”, but a gas-piston AR from a big name isnt cheap either

  • Ed (the first Ed)

    Todd, you could not be more wrong. Cerberus is about as far from a Soros controlled entity as any firm could possibly be. Soros would not put Dan Quayle or John Snow in prominent positions. Then there’s the problem of the guy who founded and runs Cerberus being a major donor to the Republican party and an avid big game hunter, not things Soros looks kindly upon. Just because something has to do with lots of money and you don’t like it doesn’t mean George Soros is behind it.

    Ed B, you also could not be more wrong. Cerberus acquired both Remington and Chrysler in 2007 (and Bushmaster in 2006). In fact, it bought Remington about a month BEFORE it acquired Chrysler from DaimlerChrysler. Hard to see how it could use the money from the Chrysler debacle to purchase Remington before it even owned Chrysler.

    Not sure where you guys get your information, but you might consider your sources’ veracity before spouting off. All of your allegations are easily proved incorrect without much effort.