[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

    I founded TFB in 2007 and over 10 years worked tirelessly, with the help of my team, to build it up into the largest gun blog online. I retired as Editor in Chief in 2017. During my decade at TFB I was fortunate to work with the most amazing talented writers and genuinely good people!