The firearms industry has shown resilience post-COVID. During the pandemic, M&A activity reached its peak with 41 deals due to the high demand for personal defense products. Although the pace has slowed, background checks and M&A activity remain above pre-pandemic levels, showing continued interest in the sector.

Steady Deal Volume in 2024

Despite a 28.9% decline in 2023, the tactical products sector maintained steady deal volume in 2024, with 11 transactions matching the previous year's numbers. Strategic buyers, especially international ones, dominate the sector, accounting for 81.8% of transactions. Family offices with an interest in tactical products are also investing heavily due to anti-ESG sentiment.

Geopolitical Conflicts Fuel Firearm & Ammunition M&A

Geopolitical conflicts, like the Ukraine war, are driving consolidation in the firearms and ammunition market. European defense companies, supported by steady revenue and increased R&D funding, are acquiring smaller ammunition manufacturers to address shortages. Notable deals include Colt CZ’s acquisitions of Sellier & Bellot and swissAA, and Beretta’s acquisition of RUAG Ammotec.

European companies are also expanding into the U.S. market. Beretta plans to invest $536 million over five years to grow its U.S. presence, including an $86 million ammunition plant in Georgia. Beretta aims to acquire quality U.S. manufacturers to complement its product range.

Vista Outdoors and International Activity

Vista Outdoor's attempt to spin off its outdoor business (The Kinetic Group) has attracted international interest. The Czechoslovak Group (CSG) plans to acquire The Kinetic Group for $1.9 billion. Competition from Colt CZ and MNC Capital Partners demonstrates strong international confidence in the U.S. ammunition market.

Active U.S. Buyers

U.S. buyers remain active with a strong appetite for acquisitions. Notable transactions include Hodgdon Powder's acquisition of RCBS Reloading and Daisy Manufacturing's acquisition of Crosman. These deals highlight ongoing strategic moves within the U.S. tactical products market.

Our Take

The firearms industry is rapidly evolving due to strategic M&A activities. Both international and U.S. buyers are expanding their market presence, driven by consumer demand and geopolitical factors. Firearms business owners must stay informed about these trends to navigate the competitive landscape and seize new opportunities.

Click here see a list of all the firearms industry M&A deals we're tracking.