Beretta targets 30% stake in struggling Sturm Ruger with $44.80 per share bid
Beretta Holding, the world's oldest firearms maker, is pushing to expand its control over US rival Sturm Ruger. The Italian company already owns nearly 10 percent of Sturm Ruger's shares. Now, it wants to increase that stake to 30 percent through a cash offer of $44.80 per share.
This move follows a sharp decline in Sturm Ruger's stock price, which has lost over 70 percent of its value since late 2021. The company's struggles come amid falling demand, inflated costs, and a weakened firearms market.
Sturm Ruger's shares once peaked at around $165 in December 2021. Since then, the price has collapsed to between $40 and $45 by March 2026. The drop reflects a slump in gun sales after the COVID-19 buying surge, inflated production costs, and excess inventory at dealers.
Beretta has been building pressure for months. Last month, it launched a proxy fight to place four of its own directors on Sturm Ruger's board. The company also sent a letter to the board, formally stating its intention to raise its ownership. To proceed, Beretta asked Sturm Ruger to remove its poison pill defence—a measure designed to block hostile takeovers. Sturm Ruger previously dismissed Beretta's efforts as a 'creeping takeover'. Despite resistance, Beretta is now offering shareholders $44.80 per share for an additional 20 percent stake. The US remains the largest firearms market due to its relaxed gun laws. Beretta, with €1.7 billion in 2024 sales, dwarfs Sturm Ruger, which currently holds a market value of around $650 million. If successful, the deal would significantly strengthen Beretta's position in North America.
Beretta's tender offer values Sturm Ruger's shares above their current trading price. The outcome depends on whether Sturm Ruger's board accepts the bid or maintains its defences. A successful deal would mark a major shift in the US firearms industry's competitive landscape.
