LWRC is up for Sale

lwrc

Jon Stokes breaks the news at All Outdoor that LWRC is up for sale

This past December there were rumors on AR15.com about a possible sale of LWRC to Colt. Apparently, any questions about a possible LWRC sale that were posted on the LWRC board were deleted by the mods within minutes, and in general there’s a sense that something’s up.

Now we can add more fuel to the fire with some new revelations. Recent inquiries from AllOutoor to LWRC regarding possible advertising and T&E rifles were met with some pretty bizarre responses, which stated that the company is currently prohibited from entering into any “contracts, obligations, or expenditures.”

Having sold a company myself before, I know exactly what the above means: it means that LWRC is almost certainly in the final stages of talks with a buyer.

My own enquires confirm what Jon has reported. The company is indeed up for sale (or has already been sold).




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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  • Geoff a well known Skeptic

    Just getting a big contract does not mean you can deliver on it. They may be in serious trouble and the foundry has them by the shorts.
    Geoff
    Who has seen too many medium contractors bite off more than they could chew.

    • J.T.

      You made me remember Jolt Cola. I am sad now.

    • Less Skeptical

      The Saudi contract mentioned in the article has been ongoing since early 2013. It should almost be finished, actually, so it seems LWRC has indeed been able to deliver on the contract. Couple that huge contract with the enormous boom in AR sales from the gun control laws last year and the company could look very tempting if it is up for sale.

  • Phil Brereton

    Getting a big contract also makes them a prime target to be taken over, and the shareholders to cash in.

    • JumpIf NotZero

      They aren’t a public company, so there is zero chance of it being “taken over”. It can only VOLUNTARILY be sold.

  • Mystick

    It might also mean that they are getting ready to move out of Maryland and don’t want to saddle themselves with production deadlines and quotas before they load up the trucks.

  • Harrison Jones

    If this is happen good you the owners if this means they will make some money. I just hope the forward thinking doesn’t stop.

  • ColaBox

    Oh please don’t let Freedom Group get a hold of it, these guys innovate in a lot of clever ways and id hate to see what happened to the Honey Badger happen to the new Six8 and a lot of their other products.

    • JumpIf NotZero

      What “happened to the honey badger” was that it was a prototype and nothing more. That gun has ZERO chance of ever coming to market as is. Most people still don’t realize it was a THREE stamp gun. Most people don’t realize those little stocks look cool but feel like shit. Most people don’t realize a common 9″ two stamp gun is going to do everything better than a boutique 6″ gun.

      Pfft, what “happened” to the HoneyBadger is the same thing that “happens” to cool looking cars at auto shows. They never really existed.

      • Michael R. Zupcak

        How can it be a 3-stamp gun? Civilians can’t own newly-manufactured select-fire weapons. LE agencies don’t have to buy tax stamps at all. If the Honey Badger had gone to the civilian market it would have been semi-auto-only. 1 stamp for the SBR, 1 stamp for the suppressor. If it went to the LE market it would not require stamps.

        Also, a civilian-transferable “machine gun” does not need a separate stamp for a short barrel. A registered “machine gun” can have a barrel of any length with only 1 stamp.

        • JumpIf NotZero

          I never said a single thing about full auto. You’re incorrectly jumping to conclusions.

          It was technically two suppressors. There was the suppressor and also a backpressure type device to make it cycle at 6″ barrel length without going with custom ammo. That backpressure device would be (is) classified as a suppressor.

          It was a three stamp gun. One suppressor, One SBR, and one pressure assisting/mitigating device under the handguard that the ATF classifies as a suppressor.

          That gun was NEVER going to come to civilian market. Just a concept.

          • Michael R. Zupcak

            I guess we learn something new everyday. I didn’t know about the second “pressure mitigating device”, I assumed you meant the third stamp was for a machine gun. Maybe I need to get myself a Jump To Conclusions mat like in Office Space. Thanks for the correction.

          • JumpIf NotZero

            No issue! They never talked about it that I know of except for in the SilencerTalk forum.

      • ColaBox

        Jump every comment you post seems to come off as extremely condescending. I think people are well aware it’s a three stamp gun, but my point is that Freedom Group has a reputation for being about the money and screwing innovation. The HB was scrapped because they wanted a production boost in other areas of the company. Because AAC got screwed SIG stepped in and created the MCX PDW which in an interview with Kevin Brittingham, admitted was better. Now we have LWRC making the new Six8 in the Honey Badger’s shadow, and if FG got ahold of LWRC we can kiss that goodbye too. I had an interest in the gun because it was a rather unique concept, and screw CoD, they put it in? Good for them. But saying the gun had a zero chance of coming to market is bullshit, we have electricity, space travel, and civilian owed suppressors, tell someone about these things 200 years ago and they’d laugh in your face. So anything is possible. The HB may have needed 3 stamps but there are plenty of people willing to deal with the ATF. Im not one of them but still. Stifling innovation from the get go screws us down the road.

        • JumpIf NotZero

          Heh, yea! The Six8! Woo! an 8.5″ 6.8SPC gun that has a proprietary lower and controls, proprietary and uncommon magazines that although look identical to AR-15 are not, special bolt, special barrel, special stock, special receiver extension and buffer, special 90gr bullets!

          You’ve got to be kidding me if you think that tiny tiny niche will be anything but a knick knack on some collector’s shelf in 10 years. It’s a doomed from the start project if for no reason other than the special ammo. Oh what’s that? 6.8 is less popular than 300blk now? Ok, here is an even more rare load that works in this just as rare gun. Winner?

          Contrast that with 8-9″ 300blk options where only the barrel is unique.

          • JohnE$

            Let’s set a few things straight:
            1.The 6.8 is the second most popular AR round on the market. Compare ammo prices (6.8 vs BO), number of ammo mfg’s, bullet selection, and barrel/ upper/ AR mfg’s chambering in 6.8. There’s also market data floating around to validate my claim.
            2. The only thing the Six8 uses that’s DIFFERENT (NOT propriety, the dimensions are open source for other mfg’s) is the receivers, the ambi controls, and the Magpul Six8 mags. Everything else can be swapped with standard AR parts… Congrats on spewing out worthless and untrue info.
            3. The 90gr bonded Federal bullet is impressive, even if it’s slightly anemic. Nothing too ‘special’ about it though, except the bonding process is slightly interesting.
            4. The 6.8 makes the BO look like a joke in any barrel length.
            5. The only thing I can agree with you on is that the Six8 might turn into a collector’s piece. Time will tell.

          • JumpIf NotZero

            Yes! Let’s set a few things straight!

            1. The 6.8 is not the second most popular AR15 round on the market. That would be 22. The third would be 9mm. If you want to argue who is the fourth most popular round, go right ahead, I could care less of a screaming match between 300blk, 6.8, 6.5, they’re all very niche and lack mass appeal.

            2. You’re flat out wrong, really, couldn’t be any more wrong. I suspect you don’t understand the word proprietary. The lower, upper, ambi controls, rail, the receiver extension and buffer which are both shorter than anything else out there, the LWRC piston system, bolt, and carrier are all PROPRIETARY LWRC. They are LWRC’s design and while you might be able to get the drawing for the larger mag lower, or buy mags from Magpul, that’s not the same thing. Please tell me where you are going to get the short Six8 buffer from if not LWRC? “Everything else can be swapped with AR parts”…. Ok, like the trigger, grip… and….???

            Perhaps you could do a courousy amount of research into the components that make up the Six8 before rattling off how non-proprietary it is?
            http://www.shotgunnews.com/2012/11/09/lwrci-uciw-six8-review/

            3. The 110gr 300blk is impressive. See what I did there. Added my opinion just as you did, it’s worthless. Is the 90gr available at Walmart? No? How about at my local gunstore that might have some 6.8 ammo? No? Ok, cool story bro. Let me rush out to buy a specially designed round to work in my specially designed gun that is available from a single manufacturer!

            4. That’s some really conclusive information. Thank You for your insight. Remind me how heavy subsonic you can get in 6.8gr? Remind me does the 6.8 work from a 556 bolt or 556 mags? No? You need special mags and a special bolt? Oh, I guess I’m not seeing the “joke”.

            5. Maybe I’ve just been around longer to see these “vondergunz!” come and go? LWRC makes a fine enough rifle if you must have a piston system, and their DI while better imo than their piston is no more unique than a thousand such rifles. This “Six8″ will go out quietly into the good night with little fanfare. It’s just a niche toy designed to make people who wouldn’t ever bother going NFA have something to drool over. It’s sort of impractical even for PDW / NFA standards.

          • Rick

            They didn’t build the 6.8 UCIW for commercial consumers, it was a special request by the Saudi’s. They put it on the commercial market to give consumers an opportunity to own one . They have other AR models in the mid 1k range and up to accommodate the common man, they are not all $2500. Where did you get your info???
            Claims that LWRC is going upside down due to pricing them selves out of the market with $2500 AR’s is ridiculous. If your claim is correct, then Larue and Noveske won’t be far behind with the prices of their models, in fact, neither one of them have rifles under 2k, and i’m being conservative.

          • JumpIf NotZero

            I’m honestly not sure who you are arguing with. I never made any claims that LWRC’s price points have anything to do with anything.

            Straw-man much?

          • rkwjunior

            i’m responding to several post above including yours. don’t take offense.

  • erwos

    The article author misses what is probably a substantial piece of the story here: LWRC is located in Maryland, which just passed some rather nasty gun control laws. I know it’s “no politics” here at TFB, but realistically, that is a data point that needs to be mentioned. LWRC can’t sell any of their non-heavy-barrel rifles locally anymore.

    • jaeger1447

      Correct. They also sell one of the only unequivocally-MD-legal factory HBARs that is truly modern, piston or otherwise. If they relocate, I think it’ll be a big negative for us here in MD.

      Beyond the sale, LWRC on the whole has had a few issues recently; I was told that they had a few issues getting their in-house hammer-forging machine up and running, and that they’ve been unable to make their gas-piston system work with short .300blk barrels and subsonic loads. There were some recent rumors of an LWRC DI rifle. Beyond that, as mentioned below, the AR market is saturated – let alone the market for gas-piston ARs with $2500 pricing. It may be a good time for the owner to bow out – but perhaps I’m viewing this with too cynical an eye.

  • Lance

    SO Colt buys up another Major AR and military small arms maker. Not a BIG shock but interesting.

  • Otto Skorzeny

    Maybe the market for $2500 ARs is drying up

    • http://www.thefirearmblog.com/ Phil W “Senior Writer TFB”

      Hard to say but I don’t know that one thing has anything to do with the other. AR prices are down and will continue to drop to some degree. Whether that impact is great enough to cause them to sell is anybodies guess.

  • Blaster Head

    Or they are bankrupt and/or anticipate filing a petition with the bankruptcy court.

    • JumpIf NotZero

      You’d have to some special kind of stupid to be an AR mfg and be bankrupt after this past four years ;)

  • Bob

    Colt buys lwrc, colt submits piston design just like lwrc designs. Government gives colt contract when they issue a new rifle. My prediction.

  • Otto Skorzeny

    $60M??? PT Barnum was right- there IS one born every minute.

  • Harvey Manfrengensenden

    Steve needs to send some of the staff writers to some grammar and writing classes.

    Enquires? Really?

    OOPS! I think Steve was the poster :-(

  • Jose who hates beans

    Forever lost to corporate deals now. May colt keep it colt.

  • EG

    “Colt buys lwrc, colt submits piston design just like lwrc designs. Government gives colt contract when they issue a new rifle. My prediction.”

    Definitely plausible. During the Army carbine competition, there were “rumored doubts” about LWRCI’s limited production capability. I bet that’s when Colt drew a bead on LWRCI, and started reaching for their checkbook. The Colt 6940P piston rifle was not impressive. Here’s to the new LWRColt-I Army carbine.