Sturm, Ruger (NYSE: RGR) was recently reported as being in the running to buy the ammunition business of bankrupt gun manufacturer Remington, a move that would have been a dramatic departure for the pure-play firearms maker.
Although there was some sense to becoming vertically integrated in the current environment, as the firearms industry is seeing an unprecedented increase in demand, Ruger has always been a company that stays in its lane and does what it knows best.
As it turns out, what Ruger really wanted from Remington was its Marlin Firearms business, which it agreed to pay $30 million for. That's a much more sensible purchase, and it should help the gunmaker continue to grow sales.
For further details see:
It Was Guns, Not Ammo, That Sturm, Ruger Wanted From Remington