[MAJOR NEWS] Freedom Group pulls plans for IPO!

Steve Johnson
by Steve Johnson

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
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!

More by Steve Johnson

Comments
Join the conversation
2 of 18 comments
  • TheAmdMAN TheAmdMAN on Apr 06, 2011

    @ William C.

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

  • Jared Jared on Apr 06, 2011

    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

Next