RUAG Ammotec is a global leader in design, development and production of small-calibre ammunition and components. (RUAG)
Beretta Holding Agrees to Acquisition of RUAG Ammotec
New Group Will Have Over 50 Subsidiaries and $1.5 Billion in Revenues
Beretta Holding announced on 9 March it has entered into a binding agreement to acquire 100% of RUAG Ammotec. The parties have agreed not to disclose the financial terms of the transaction, completion of which will be subject to normal regulatory approval and closing conditions and which is expected to be completed within six months.
“This is a very special moment in the history of our Group. We warmly welcome the more than 2,700 employees of RUAG Ammotec to our Group, having worked almost three years on this project,” stated Pietro Gussalli Beretta, President and CEO of Beretta Holding. During that period, there has been clear recognition of the excellent cultural fit between the two organisations, and that RUAG Ammotec has a strong, experienced and competent management team in place. “We have the firearms and the optics, RUAG Ammotec has the ammo – there is almost no overlap, explained Beretta”.
There are also strong synergies in R&D and distribution, which will lead to strengthening the enlarged group’s European business and further develop its global footprint. “This new addition to our group will add a substantial number of high-end brands to our existing portfolio of premium brands,” Beretta added. As requested by the Swiss government, Beretta commits to maintaining the existing locations and has specifically agreed to maintaining 400 jobs at the Thun facility for at least five years, according to a RUAG statement.
From a RUAG International perspective, the sale of the Ammotec division fits perfectly with its evolving strategy of becoming an agile technology provider with a focus on space. “We are taking the next step to withdraw from the defence-related business completely. We are pleased to have found a renowned industrial partner for Ammotec in Beretta, who will take over all employees and the Thun site. With its industry experience and global presence, Beretta offers the best conditions to sustainably grow Ammotec’s business activities for the benefit of customers and employees,” explained André Wall, RUAG International CEO.
Beretta has been family-owned for nearly 500 years – since Mastro Bartolomeo Beretta was commissioned to provide arquebus barrels for the Venice Arsenal in 1526. Post acquisition, Beretta Holding Group will encompass some 6,000 employees and will have revenues of approx. €1.5 billion. It will add five manufacturing sites and 16 new companies in 12 countries, meaning there will be over 50 subsidiaries worldwide.