By Hanna Krueger
It took months, countless transcontinental flights, a poison pill and more lawyers than either side wants to admit, but Sturm Ruger & Co. and its Chief Executive Todd Seyfert have a deal with Italian gun maker Beretta that ends their protracted proxy fight. Now the question is what exactly Ruger's relatively new CEO does next.
"The great news is we have time," Seyfert said in an interview Thursday. "We're early in the process."
Beretta walks away with a path to two board seats and an eventual shot at owning up to 25% of Ruger. Under the deal terms announced recently, Ruger gets a guaranteed floor price on the stock that Beretta will look to buy and a standstill that constrains what Beretta can do with those shares once it has them. For now, the quintessentially American company retains its independence, albeit with an Italian flair.
Seyfert, a Wisconsin-born elk hunter and gun-industry lifer who took over as CEO last March, spoke with The Wall Street Journal to explain how more months of hostility became a handshake, what Ruger actually won, and what it means to have Beretta -- Italy's oldest defense manufacturer -- as a major shareholder of the Connecticut-based company.
The interview has been edited and condensed for clarity.
WSJ: When we last talked, this was a story of "he said, she said ." You described a lack of understanding of what Beretta wanted and what it envisioned for the future of Ruger. What changed?
SEYFERT: As we got closer to the annual meeting and the proxy day, both parties really understood that going through that process ultimately was costly for both parties, not in the best interest of our shareholders, our employees and all of our other constituents. They are a family business, generational and very successful. But there were misunderstandings about what might be normal in Europe versus what we have to follow in terms of being a U.S. public company.
WSJ: Now, what do you think Beretta was ultimately looking for when it was acquiring shares in Ruger?
SEYFERT: We're the largest firearms manufacturer in the largest firearms market. As Beretta looks at the world and opportunities for growth, the U.S. market continues to be very attractive.
WSJ: Beretta gets a path to two board seats, the opportunity to do a tender offer and eventually up to 25% of shares. What do you see as Ruger walking away with in this negotiation?
SEYFERT: Number one, we have a shareholder that is aligned with the philosophy of being a firearms manufacturer, very second amendment, very pro what we do. Having an investor of that size that understands our business and is aligned with our business is very important. Number two, a valuation at $44.80 allows for an increase in share value, so that's a good thing for Ruger and all the shareholders. And when we talk about the board seats, we've been refreshing our board and we are always open to good directors that share a common goal of maximizing long term shareholder value. We're confident that in this cooperation agreement, Beretta will put forth candidates that meet that expectation.
WSJ: Ruger has built its brand identity on being an American gun company -- made here, sold here, the first rifle a lot of kids in America ever touch. How does having a major European shareholder impact the Ruger identity?
SEYFERT: It doesn't. We're still Ruger. We still manufacture in the U.S. We still sell predominantly in the U.S. In terms of the running of the business and who Ruger is and its identity in the U.S., that does not change.
WSJ: Beretta told us they wanted to improve an underperforming company. You told us they wanted to grab board seats in a creeping takeover. Now that you've signed a deal, which interpretation was closer to the truth?
SEYFERT: We believe we are overperforming in what has been a tough market post-Covid for the industry. My view stays as it always has -- I'm incredibly excited to be here at Ruger. We now have time to focus on profitability and growth for the next three years, without any more distractions, and prove to our current shareholders and our new largest shareholder that we have a plan and we can execute it.
WSJ: Five years from now, if everything goes to plan -- the board seats get filled, the tender offer closes, Beretta becomes a 25% shareholder -- what does that relationship look like? Partner, silent investor, something more complicated?
SEYFERT: That is what we need to go figure out. We need to get through legal approval from the U.S. government -- that's step one. Step two is the tender offer that Beretta will then execute once legal approval is given. Then the great news is we have time. As an investor, I would hope that as we grow our business and our shareholder value and our stock price, all shareholders, including Beretta, are happy with that trajectory. If there are things that make sense for both businesses, that is what we need to figure out. We're just not there yet. We're early in the process, but we certainly look forward to having a significant investor that also happens to be fully behind what we do and the industry that we support.
WSJ: You're meeting Beretta's chief executive, Pietro Beretta, for dinner tonight. That's a change in tune for companies that struggled to meet in the same room for the past year.
SEYFERT: I would call it breaking bread. He's in town in the U.S. for business. He reached out to see if I was available. I said absolutely. All of the noise is behind us.
Write to Hanna Krueger at hanna.krueger@wsj.com
(END) Dow Jones Newswires
May 08, 2026 09:54 ET (13:54 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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