Beretta’s Proxy Fight for Control Over Sturm, Ruger & Co.

Italian firearm maker Beretta is reportedly initiating a proxy battle to gain control of Sturm, Ruger & Co., the largest firearms manufacturer in the U.S., according to sources familiar with the situation.

The historic company, which has been around for over 500 years, holds a 10% stake in Sturm, Ruger, based in Hartford, Connecticut. Beretta intends to appoint four executives to the existing nine-member board, aiming to enhance Smith & Wesson’s influence over its primary rival, according to those in the know.

Among the proposed candidates are William Franklin Detwiler, who is a managing partner at Fernbrook Capital Management; Mark DeYoung, the founding CEO of Vista Outdoor; Frédéric DiSanto, CEO of Ancora Holdings; and Michael Christodore, who founded Inwood Capital Management.

A proxy contest like this, which is often contentious, involves shareholders trying to convince other investors to replace the current board or management.

An important vote is anticipated during Sturm, Ruger’s annual general meeting slated for May 29.

This conflict surfaces against a backdrop of sluggish sales and declining profits for Ruger, despite seeing its stock price rise more than 40% over the past four years.

As of the last trading session, Sturm, Ruger’s market cap was approximately $581 million.

When Beretta revealed its initial 9% stake in a filing back in October, it expressed a desire to explore “potential areas of operational and strategic cooperation” with Sturm, Ruger.

Subsequently, Sturm, Ruger adopted a one-year shareholder rights plan due to concerns regarding the increasing ownership stake held by Beretta.

These types of strategies are often labeled “poison pills,” designed to deter hostile takeovers by diluting the ownership for investors surpassing a specific threshold.

Founded in 1526 in Italy’s Lombardy region, Beretta generated revenue of $1.7 billion in 2024, although it trails behind competitors like Switzerland’s RUAG Ammotec as of 2022.

Pietro Gussari Beretta, the 15th generation descendant of founder Bartolomeo Beretta, currently leads the company.

With its eyes set on increasing its footprint in the U.S. – the world’s largest legal firearms market backed by the Second Amendment – Beretta seems to be making bold moves. The Post has attempted to get comments from both Beretta and Sturm, Ruger regarding the situation.