Experts: Taurus May Make Bid on Freedom Group
(The Outdoorhub.com) The financial information giant Bloomberg set off a flurry of discussion in the gun industry and community last week when it published an article speculating that Brazil-based gun manufacturer Taurus might make a bid on the newly-for-sale Freedom Group. Freedom Group is an American firearms manufacturing holding company that has collected several powerful brands beneath its banner, including Bushmaster and Remington. The firm was in the news last month after its majority stakeholder, Cerberus Capital Management, announced it would be selling its shares in the company.
According to brokerage firm Coinvalores and Wedbush Morgan Securities cited in the Bloomberg article, analysts agree that Taurus is emerging as the prime candidate to buy Freedom Group.
Purchasing Freedom Group is a risky venture, say some experts, in light of President Obama’s recent gun control proposals. However, a successful acquisition could propel Taurus–already the world’s second-largest gun manufacturer based on revenue–into even greater heights. Taurus recently purchased Heritage Manufacturing Inc, a U.S.-based gunmaker, so the company clearly has set goals on expanding its influence on the American market, of which Taurus controls 19 percent.
The acquisition of Freedom Group would also allow Taurus a footing into the gun industry outside of handgun manufacturing, including Remington’s venerable rifle and shotgun lines. The Remington name is an old and esteemed one in the industry, and lends no small amount of credibility to the companies it works with.
Freedom Group is estimated to bring in around $1 billion based on existing data. Representatives from Freedom Group, Taurus, and Cerberus have not publicly commented on the rumored purchase.