The voracious maw that is Freedom Group, Inc. has devoured another now-formerly independent gun maker. This time it’s Para USA that’s cashed in and decided they’d rather be assimilated into the FGI Borg. And why not? Look how well it’s worked out for companies like Bushmaster, Marlin and AAC. Press release after the jump:
Madison, NC – Freedom Group, Inc., (FGI) through a wholly owned subsidiary has announced today that it has finalized an asset purchase agreement to acquire certain assets of Para USA, INC., (Para).
Founded in 1985, Para has built a solid and enviable reputation for innovation, performance and reliability. Firearms enthusiasts, serious shooting competitors and law enforcement agencies choose with confidence from a wide and growing variety of Para pistols. Para’s revolutionary high capacity frame and light double action ( LDA ™) trigger systems, are part of the innovation that Para has brought to the world famous 1911 design.
“We welcome Para into the Freedom Group Family of Companies,” stated. E. Scott Blackwell, Chief Sales and Marketing Officer of Freedom Group Inc. “Para USA is a leader in handgun technology and their fine products exemplify quality, innovation and performance. Para is a perfect complement to our industry-leading family of brands, and our success in 2011 with the Remington R1 – 1911. We look forward to deploying both human and financial resources to continue to develop and supply current and future handguns for consumers and our channel partners. We also wish to thank all its employees for their continued dedication that has made Para a success.”
Para will continue day-to-day operations at their Pineville, NC based facility.
So how long until they put Para’s leadership in the bread line, or shut the plant down and consolidate production into an existing factory?
I see a disturbing trend here towards the auto industry. One company ends up owning many brands, half of which fail because they are competing with each other on the same balance sheet at the end of the day.
I’m trying to keep my tinfoil hat still on the roll, but the trend line is there.
Given the fact that The Freedom Group has failed to IPO twice, I wouldn’t worry about consolidation becoming a trend. Petard hoisting is the order of the day.
“Founded in 1985, Para has built a solid and enviable reputation for innovation, performance and reliability. Firearms enthusiasts, serious shooting competitors and law enforcement agencies choose with confidence from a wide and growing variety of Para pistols. ”
Don’t worry, Nardelli and the boys will make sure this isn’t true for very long.
This is that whole capitalism thing we love so much
Not exactly. The capitalist model relies on the premise that competition is good (for the consumer and for society- not necessarily for businesses).
While capitalism is often associated with a completely free market, it isn’t inconsistent for capitalists to call for some regulation (anti-trust laws, etc) to keep businesses competing, and to avoid the known evils of monopolies.
It could be a conspiracy. Do you know who owns the Freedom Group?
Cerberus Capital Management.
bunchofnumbers, you are not the enlightened one on that. Cerberus ownership is common knowledge.
Yeah, but who’s behind them? I’ll bet you didn’t know that Paul Helmke is on the board. Why do you think he quit the Bradys?
No, it’s not Rahm Emmanuel. That was an email conspiracy that was never corroborated.
As much I love a conspiracy theory, I think in this case it is pure incompetence.
George Soros
Good. There are too many 1911 makers as it is and Para has always been synonymous with “turd” in my mind.
I wonder if this means that Para will mate with Marlin to make a Parlin lever-action M1911. That would be something.
There are too many 1911 makers as it is and Para has always been synonymous with “turd” in my mind.
With the caveat that anecdotes are not data — I actually own one of their older models (a P14.45) and have been pretty pleased with it. I’m not going to say it’s the best gun I’ve ever fired, but it’s a good gun. What is it about the Paras that has drawn your ire? Or have they just gone way downhill since 1997?
Never liked Para to begin with so I couldn’t care less about their brand.
Always wanted to give one of their LDA 1911s a try, maybe not so much now…
I own a ParaCarry c6.45 1911 with the LDA trigger. Love it.
The only thing that bothers me, is when they are finished adding to thier gun collection, then what? Shut the doors. Putting an end to about half of the supply, and drasticly raising the price for the others.
Just seems like no good will come from all this.
I believe I mentioned this was going to happen last week…
Yes you did. Props. Or a knock on your door from the SEC.
more insider info: facebook is going public soon.
Your powers of precognition astound me.
I knew you would say that.
I believe I mentioned this was going to happen last week…
Now to hurry up and buy a GI expert before quality goes down the shitter.
Para sucks and Freedom Group swallows?
One ring to bind them all…
*Tinfoil hat time*
Corral all the independent firearms manufacturers into one giant corporation which can be taken out back and put down with regulations, lawsuits, and the like.
*Removed Tinfoil Hat*
That said, this is just business as usual. They could be poised to make a ton of money. I hope more and more independent firearms companies crop up in the mean time. Competition helps keeps prices down. I’m willing to bet pretty soon these guys are just gonna start charging whatever they feel like, and we wont have anywhere to go.