Ceasefire in the arms market: agreement between Beretta Holding and the American Sturm Ruger.
The Italian giant – world leader in firearms production, which includes the historic Fabbrica d’Armi Pietro Beretta of Gardone Val Trompia, founded in 1526 – strengthens its presence in the United States with an agreement that ends months of tensions with Sturm Ruger and allows the Italian group to increase its stake to 25% of the American firearms manufacturer through a partial public cash tender offer of $44.8 per share. The agreement also includes governance rights and a non-aggression commitment between the parties.
Peace comes at a delicate time for Sturm Ruger: the company has faced a slowdown in sales and a sharp drop in profits, which caused its share price to fall by more than 60% from the 2021 peak, the Financial Times reported earlier this year.
All the details.
(ARMED) PEACE BETWEEN BERETTA AND STURM RUGER
There is a truce on Wall Street for control of Sturm Ruger, the largest firearms manufacturer in the United States, after in early March the Italian group Beretta Holding, based in Luxembourg, decided to assert its 9.95% stake, with which it became the largest shareholder.
Not only that, Beretta had also presented its own slate of candidates for the board of directors ahead of the May 29 shareholders’ meeting and promoted a partial offer on another 20% (rejected by Sturm Ruger’s board), while the American company adopted defensive measures against possible takeovers.
Now the Italian group has reached an agreement with Sturm Ruger that ends the tensions that emerged in recent months.
WHAT THE AGREEMENT PROVIDES
The agreement establishes that Ruger will allow the Italian group to increase its stake up to 25% of the outstanding shares through a partial public tender offer. The minimum offer price is set at $44.8 per share in cash, representing a premium of about 20% over the weighted average of the sixty days prior to the announcement on March 26.
In relation to the increase in the stake, Beretta will have the right to appoint up to two independent directors after the 2026 annual shareholders’ meeting and regulatory approval. After that, Ruger will proceed with a temporary expansion of the board of directors.
THREE-YEAR NON-AGGRESSION AGREEMENT
Furthermore, the agreement includes a three-year “standstill” commitment: during this period, the Italian group will not promote hostile actions and will vote in line with the recommendations of Ruger’s board, except in specific cases.
Sturm Ruger will remain an independent publicly traded company in the United States, maintaining its “brand, heritage, and strategic direction.”
THE POSITION OF THE AMERICAN COMPANY
“This agreement is strategically valuable and will benefit all Ruger stakeholders,” said the chairman of the American group John Cosentino, specifying that it “ensures stability, avoids further expenses and distractions, and creates a framework for productive engagement with Beretta Holding, while preserving Ruger’s independence and governance standards.”
Meanwhile, Ruger has faced a slowdown in sales and a sharp drop in profits. Its shares have fallen by more than 60% from the 2021 peak but have partially recovered since Beretta disclosed its stake.
BERETTA HOLDING’S EXPANSION (ESPECIALLY IN THE US)
“This cooperation aligns with the group’s strategy to further strengthen our presence in the United States, a key market where we have been active for several decades, and reflects our commitment to continuous long-term development,” commented CEO Pietro Gussalli Beretta (pictured), fifteenth-generation heir of founder Bartolomeo Beretta. In the United States, the group generates about 39% of its revenue through nine controlled companies.
Moreover, the Beretta Group is constantly acquiring competitors. In 2022, Beretta acquired the Swiss ammunition manufacturer RUAG Ammotec. To date, the group employs a total of 6,500 people. In 2024, it recorded revenues of 1.5 billion euros, rising to 1.68 billion euros in 2025.
