Heckler & Koch Primary Shareholder Injects 60 Million Euros Into Company

Heckler & Koch announced on the 17th that the primary shareholder, Andreas Heeschen, has provided H&K’s GmbH’s parent company, H&K AG with 60 million Euros. The new shareholder loan is to assist with H&K GmbH’s cashflow and repayment of various outstanding loans.

In the firearms industry, this is a rare move and shows Mr. Heeschen’s confidence in the Heckler & Koch company. Demand for firearms in Europe is increasing due to various social and economic factors including the Syrian refugee crisis and escalating tensions between powers including Russia.

Its also convenient timing, as the H&K G36 has been vindicated of its supposed accuracy issues. We at TFB were one of the few outlets defending the rifle against accusations that the zero would wander under adverse conditions. Even with the G36 resolved, the company still has issues facing it including the recent arrest of ex-employees illegally exporting firearms to Mexico.

The move, including a recent draw of 15 million Euros on a secured credit line is assisting with covering an outstanding 9.5% Senior Secured Note due in 2018. However, the company still will have over 200 million Euros of outstanding debt, which recently resulted in a reduction of the company’s credit rating by Moody’s and Standard & Poor.

See the Press Release at H&K. 

Nathan S

One of TFB’s resident Jarheads, Nathan now works within the firearms industry. A consecutive Marine rifle and pistol expert, he enjoys local 3-gun, NFA, gunsmithing, MSR’s, & high-speed gear. Nathan has traveled to over 30 countries working with US DoD & foreign MoDs.

The above post is my opinion and does not reflect the views of any company or organization.


  • BattleshipGrey

    Wow, that’s a lot of debt, and a lot of confidence from Mr. Heeschen. I hope they turn things round and prove him right.

  • G0rdon_Fr33man

    What they need is another war!

  • CommonSense23

    Hasn’t every report stated that the G36 has problems, but that no soldiers have been killed from them, and that the soldiers are overall happy with the rifle.

    • BillC

      That was my understanding. I don’t have a horse is the race, but that’s hardly what I called vindicated or cleared. “Hey, at least no one has died from it and people still like it.”

    • Joshua

      And a lot of retire American soldiers still think everyone should be equipped with a M14 and the M16 was made by Mattel.

      Doesn’t make then right.

      • CommonSense23

        Don’t forget how many think going to a 1911 and a 416 would solve our pistol and rifle programs,

  • John

    All due respect to TFB, but you didn’t put the G36 through hard testing. All you showed were a couple of mag dumps with pauses in between. I was expecting full replication of the German testing, which included sustained fire for at least a minute solid.

    HK is sustained with this money. Their G36 is not.

    • Vitor Roma

      Sustained fire for a minute? What rifle is made to shoot around 700 rounds in a minute? And how it is possible without being belt-fed? The standard carrying load of an american soldier is 210 rounds (7 mags). Dumping 4 mags in full-auto is more than enough to test the accuracy. And if someone is being that trigger happy, I don’t think the person cares much about accuracy.

    • Weaver

      Actually if i remember they did exactly what the german government said would cause the G36 to have a point of impact shift. The debunk that in the video/

  • cahillm2

    They wouldn’t need to inject this amount of capital into the business if they would make available to U.S. civilians some of their more desired models. Yes I know German export laws are strict and whatnot, which is why they should be manufactured here, which also costs money yes.

    • john huscio

      VP9sk coming soon

    • HKGuns

      I’m sure it all sounds so simple doesn’t it, except IP is covered by those laws as well.

      • TJbrena

        So how could H&K get around that? Any legal loopholes that’d allow the company or its designs to become fully “American”? Ways to transfer IP or patents to HK USA?

  • They should license more of their products if they want to make more money. Should have learned from their older days when HK was king and they licensed G3’s and MP5 machining to everyone.

    • toms

      The intense licensing of their weapons was the main reason for HK’s problems in the 80’s. Those countries in turn flooded the market with comparable product for half the price. No HK is screwed as long as it stays in Germany. Germany and western europe are taking a nosedive into the gutter quickly. PC stuff used to just be lip service, everybody knew it was BS diplo-speech to keep media outrage at bay. A generation later people swallow the scrap hook line and sinker. They can’t see reality staring them right in the face.

  • Jeff S

    Does this affect HK USA in any way?

  • toms

    Any new demand for firearms in europe are likely shortlived. Right on time, the EU published a rule changes regarding “deactivated arms” which is to say prop guns, but also in subsection C pg 238 (guess) bans civilian ownership of most semi auto weapons. Makes one wonder if they had already drafted the report then waited for a propitious moment (the slaughter of innocent civilians with illegal weapons) to pass their anti gun agenda. No they would never do that. Sorry but no future HK goodies for lowly civilians, oh and you need to turn in any that you already have too for destruction. Wonderful world were living in gentleman. I am interested in how eastern europe will handle this BS. I say 50/50 they tell Brussels to f off. Western Europe is already lost for many reasons.

  • INFI

    So how about a civilian legal MP7? Or MP5? Or UMP?? And not redo of the ridiculous grey stock thumbhole stocked guns. The products are there, the market is here.

  • Lucifer Seraphim

    I have no sympathy for these miscreants, they have a cash cow in the USA which they have ignored these many years. Plus now that they find themselves in a quagmire of ignorance and credit liabilities someone is putting the proverbial foot up their backside, so they can make a competent universal business decision or lose everything! Plus they are absolutely quaking in their boots over the Muslim hordes of invaders taking over their countries, while their government runs a lance through their throats and ignores their pleas for assistance.

  • Monty01

    If you read the story published by Bloomberg it says that Heeschen now owns only 51% of H&K, down from the 100% he previously owned. That means he’s sold half the Company. It is obvious that he had no choice and the money he received for his shares was absolutely necessary to prevent the Company from going bankrupt. In case anyone doesn’t know, H&K has €295 million of outstanding debt at 9.5% interest plus a further €45 million convertible bond, which means it must pay around €30 million in cash out of the Company each year. Turnover has dropped well below €200 million, so the Company is struggling yo generate sufficient cash to remain afloat longterm let alone enough to support ongoing CAPEX and R&D.

    H&K is an absolutely amazing company with the strongest product line of any small arms manufacturer. It is so sad to sit what is otherwise a strong business struggling to repay the debt imposed on it by its owners. Germany’s attitude to arms exports is further crippling H&K. Without US manufacturing it is dead in the water. However, the Friday before AUSA, H&K closed its Newington, NH facility. It cannot survive selling the VP9 and VP40.

    German newspapers reported that Heeschen threatened to sue the German MoD over the G36 problems. The Rifle may have been vindicated, but threatening to take legal action against your biggest customer is hardly a good strategy if you want to win a new rifle contract.

    I’d like to see a US boycott of H&K that forces the current owners to sell the Company to someone who is serious about investing in its products, its people, its customers, and its future.

  • toms

    They let that patton expire a while ago.