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Beretta Holdings, the nearly 600-year old family owned Italian giant, has finalized its acquisition of Ammotec, the ammunition manufacturing business formerly owned by Switzerland’s RUAG International.
For RUAG, the sale represents a planned exit from the defense industry. Pietro Gussalli Beretta, leader of the eponymous family company, says that for Beretta it represents “a special moment in the history of our group” and an excellent cultural and strategic “fit.”
According to information from RUAG, the ammunition manufacturing company, with headquarters in Thun, Switzerland, will be owned by Beretta Holding, and “all 2,700 employees at all production sites (Switzerland, Germany, Sweden, France, Australia, Hungary, Austria and the U.S all have manufacturing facilities)” will remain, along with the Thun headquarters staff for “at least five years.”
The sale is the latest step in RUAG’s evolution from a state-owned business into “an agile technology provider with a focus on space.” RUAG CEO André Wall describes the sale as the “next step to withdraw from the defense-related business completely.”
Wall also says the sale to Beretta reflects “the best conditions to sustainably grow Ammotec’s business activities for the benefit of customers and employees.”
RUAG Ammotec is a self-described “leading European supplier of small-caliber ammunition. Ammotec generates around two-thirds of its total sales in the civil sector - with hunting and sporting ammunition or components for industry. Ammotec also supplies small-caliber ammunition for defense and law enforcement.”
The RUAG brands include RWS, Rottweil, GECO, Norma, and Hirtenberger, and include shotshells, centerfire and rimfire ammunition.
In the parliamentary process, the sale of Ammotec had been confirmed in autumn 2021, as stipulated by the Swiss Federal Council.
For Beretta, Ammotec represents an opportunity to expand their sphere of influence in the firearms industry with no overlap. As Beretta’s Pietro Gussalli Beretta said “We have the weapons, Ruag the ammunition. There are no overlaps in the business.”
RUAG Ammotec is one of Europe’s leading makers of small-caliber ammunition, with a majority of sales (around two-thirds) in the civilian sector, including finished ammunition for hunting and sport as well as components to other industry groups.
This isn’t earth-shaking news in Europe as the sale was confirmed last fall by the Swiss Federal Council, but IWA happening this week makes the announcement appropriate to reach the majority of the industry with the message.
For Beretta Holding Group, the acquisition adds yet another line to the product mix, and takes the headcount to more than 6,000 employees worldwide.
Both companies agreed not to discuss terms of the sale. For Ruag, the sale represents another step in their “unbundling” and planned exit from the defense industry. For the nearly six hundred year old family-owned Beretta Holdings, it represents an opportunity to add an entirely new product line to their already significant and diversified product offerings.
The sale remains subject to regulatory approvals, but those are apparently not considered deal-breakers by the two companies.
RUAG was formed in 1990 as part of a government restructuring of the country’s military businesses. Four state-owned companies were combined, with the goal of making them “competitive commercial enterprises.” RUAG unbundled the combined groups, forming two separate groups: Land and Space. The “land” will now pass to Beretta Holdings.
Effective May 1, 2022 Ruag Space will disappear as well, with a “total rebranding” changing the company’s name to: Beyond Gravity.
Seems Swiss officials see that likelihood in the technology sector, not defense.
As always, we’ll keep you posted.
