Remington buys AAC

[Telperion]

http://www.aacblog.com/

One of the most recognized brands in the firearms business is now a manufacturer of silencers. :D

[justin_5585]

Good, more money in the industry to push for tax stamps in California. Now we just need Winchester to buy Gemtech!

[Black Majik]

Good, more money in the industry to push for tax stamps in California. Now we just need Winchester to buy Gemtech!

I like the way you think!

[yellowfin]

This is HUGE if they play this the right way: to get the mainstream gun owning community to learn about and buy suppressors, to undo the damage of 1934. The single biggest obstacle to taking on the NFA is that too many gun owners believe NFA items are totally illegal and inaccessible, so they don't know to ask for what they think they can't have in the first place. This is no accident, as Class 3 dealers are comparatively rare and out of sight and NFA process comparatively unknown. It's expensive, obscure, and isolated. I really, REALLY hope Remington will want to reverse these problems. If they do, we will see monumental growth in firearms ownership and enjoyment if suppressors are brought to the masses. That loud, inconvenient, scary thing your wife/girlfriend/sister/cousin/neighbor/classmate doesn't want to do because it's loud, scary, and awkward won't have to be loud, scary, and awkward anymore.

[freakshow10mm]

Here's my take:

Remington is after large military contracts. Right now AAC is the number one manufacturer of suppressors in the country (they made 3,500 cans in 2007 alone) and they are the number one suppressor manufacturer supplying the military with cans. They surpassed Knight's Armament (makes less than 500 guns/cans a year) and Gemtech with ease. AAC is now the industry standard and they also set the military standard for materials and processes: Inconel 718 blast baffle, 300 and 400 series stainless steel, 100% welds with robotic welding machines, fast attach systems, .5 MOA POI shift between suppressor mounted/unmounted.

Remington supplies the military with sniper weapon systems and some combat shotguns. Remington has watched the military buy more and more suppressors from companies like AAC and DeGroat Tactical for their clandestine operations and SOCOM operations amongst the Navy, Army, and Marines. Look at who wins the contracts: AAC 9/10 times. Remington wants a piece of the action to boost their sales and take over positioning in that market, since that market is now coming to life now that the NFA tax is more of a nuisance than a prohibition thanks to inflation. Civilian silencer development, both from Class 2 SOTs like AAC and normal Form 1 builders inspiring Class 2s has seen a surge in the last 5 years especially.

Quite a story for AAC, who started as a small company in Georgia outsourcing all their manufacturing to a machine shop in California who marked AAC's name on the tubes. Now they are top dog in the suppressor industry. If that ain't the American dream, I don't know what is. Underdogs to big dogs. Bravo AAC. Go getcha some!

[yellowfin]

If just one percent of firearms owners bought suppressors in a year that'd be $900 million in new American made products sold. Can you think of anything we need more than that?

[freakshow10mm]

3 million people buy a suppressor at a $200 tax per can gives the government $600 million dollars in tax revenue plus 11% Federal Excise Tax on the selling price of each suppressor. Say a $250 rimfire can yields $27.50 in taxes (not to mention sales tax to the state) so 3 million rimfire cans will be $600 million in transfer tax revenue plus $82.5 million in excise tax plus an average of 30% profit margin on the sale of the can at 15.3% income tax on the corporation is $34.425 million in income tax revenue. Total revenue of $716.925 million in total revenue for the government. Idiots!

[yellowfin]

Wow, with that kind of revenue stream you'd think the federal government would force California, New York, New Jersey, et al. to legalize suppressors!

[Nodda Duma]

Good explanation, although 3500 suppressors / year wouldn't seem to be a big enough impact on Remington's bottom line to make them want to acquire AAC solely for the government contract. Remington must be looking at the wide open untapped civilian market as well. I think AAC is, also. I kind of get the impression that volume production and supply was holding AAC back. Remington's supply infrastructure and added manufacturing capability purchased with the merger dollars will help that issue. This may be what's needed to make silencers "mainstream." This could be an opportunity to tap into the European market as well? Dunno about that but it's possible.

-Jason

Here's my take:

Remington is after large military contracts. Right now AAC is the number one manufacturer of suppressors in the country (they made 3,500 cans in 2007 alone) and they are the number one suppressor manufacturer supplying the military with cans. They surpassed Knight's Armament (makes less than 500 guns/cans a year) and Gemtech with ease. AAC is now the industry standard and they also set the military standard for materials and processes: Inconel 718 blast baffle, 300 and 400 series stainless steel, 100% welds with robotic welding machines, fast attach systems, .5 MOA POI shift between suppressor mounted/unmounted.

Remington supplies the military with sniper weapon systems and some combat shotguns. Remington has watched the military buy more and more suppressors from companies like AAC and DeGroat Tactical for their clandestine operations and SOCOM operations amongst the Navy, Army, and Marines. Look at who wins the contracts: AAC 9/10 times. Remington wants a piece of the action to boost their sales and take over positioning in that market, since that market is now coming to life now that the NFA tax is more of a nuisance than a prohibition thanks to inflation. Civilian silencer development, both from Class 2 SOTs like AAC and normal Form 1 builders inspiring Class 2s has seen a surge in the last 5 years especially.

Quite a story for AAC, who started as a small company in Georgia outsourcing all their manufacturing to a machine shop in California who marked AAC's name on the tubes. Now they are top dog in the suppressor industry. If that ain't the American dream, I don't know what is. Underdogs to big dogs. Bravo AAC. Go getcha some!

[freakshow10mm]

Good explanation, although 3500 suppressors / year wouldn't seem to be a big enough impact on Remington's bottom line to make them want to acquire AAC solely for the government contract. Remington must be looking at the wide open untapped civilian market as well. I think AAC is, also. I kind of get the impression that volume production and supply was holding AAC back. Remington's supply infrastructure and added manufacturing capability purchased with the merger dollars will help that issue. This may be what's needed to make silencers "mainstream." This could be an opportunity to tap into the European market as well? Dunno about that but it's possible.

-Jason
They are using AAC's foot in the door as a way to dominate that market in the military contracts much like ATK does with ammunition and munitions, General Dynamics does with rockets and launchers, etc.

The civilian market is saturated with Class 2 SOTs making suppressors but there is still a lot of room for innovation and market share. AAC dominates the military market, the civilian market, and the LE market. Gemtech is number 2 in each of those markets. They used to be number one but AAC's leadership, quality, and marketing have put them on the top of the mountain.

The civilian market is definitely the prime target as that market is what carries the entire firearms industry in the country. No other market segment in the world compares to the American civilian (non military, non LE) firearms and ammunition market.

I don't think supply or production was or is holding AAC back. If you look at the number of firearms that the Class 2 SOTs made in 2007 (latest published numbers available from ATF) you will see the revered KAC didn't do squat compared to AAC. KAC made some 450 odd guns (including M16, silencers, and SBRs) when AAC only makes silencers and made about 3500 of them.

Merger for AAC means access to Remington's deep pockets for R&D. Silvers (head of R&D for AAC and owner of Silencertalk.com forum) will have almost unlimited funds at his disposal. Kevin will be answering to someone now, which will be a change for him. With Remington's manufacturing processes, supply buying power, marketing power coupled with AAC's marketing power, product innovation, and household name in the industry, it can only mean good things to come, IMO.

The foreign silencer market is dead. US is the only country to regulate silencers like they do. Many countries, even France, Finland, Germany, and the UK have little to no laws or regulations on suppressors. Finland encourages their use. Remington isn't after international sales. They are after civilian, LE, and military sales in the US market.

[Nodda Duma]

So AAC gets R&D dollars and Remington gets into the defense industry market. Makes sense.

-Jason

[freakshow10mm]

I'd love to see the look on LaRue's face now.

[Pvt. Cowboy]

Call me a pessimist, but I think I'd better get my AAC cans serviced or something before Remington restricts warranty work to LEO/Military only.

[freakshow10mm]

According to the AAC guys on Silencertalk, Remington is basically letting AAC run as usual but they are more or less the financing arm of it. Remington is the money and buying power. AAC is the brains and grunt work. Remington gets a cut of the profits off the top. December 1st AAC moves to a bigger facility 10 miles up the road that Remington bought for them a couple months ago.

Pvt Cowboy, I agree.

[Pvt. Cowboy]

Sad thing is that I'd hoped that I'd never ever have to deal with those douchenozzles again as long as I lived.

Now look.

[Dr Rockso]

I'd love to see the look on LaRue's face now.
Haha. A while ago I tried to search through the dank archives of arfcom to figure out where that seething hatred originated. Never did figure it out.

[freakshow10mm]

The whole story is over on Silencertalk.com. Drama will blow Jerry Springer out of the water. SHOT show won't even put them on the same side of the building!

[yellowfin]

The biggest thing that Remington could bring is their brand name. They are probably THE biggest name in civilian firearms sales--no suppressor company has 1% of that kind of market penetration and recognizability. A Remington brand suppressor would have a mainstream recognizable name that carries immense weight. How many people would you say who own guns own at least one Remington? It's gotta be no less than 1/4, probably more like 1/3. Who has seen Remington the last time they were gun or ammo shopping? Who has at least one box of Remington ammo in their closet? Now combine that thought with a wide open market--a VERY TINY percentage of gun owners own suppressors. I bet at least half the problem is they don't know where to get them or who makes them, probably half of that problem being they don't know they can get them at all. What a HUGE revelation it would be to them that not only they can get one, but Remington not only makes one, but makes a very good one.

This could be the biggest gun marketing breakout since Glock in the 90's.

[Dr Rockso]

The biggest thing that Remington could bring is their brand name. They are probably THE biggest name in civilian firearms sales--no suppressor company has 1% of that kind of market penetration and recognizability. A Remington brand suppressor would have a mainstream recognizable name that carries immense weight. How many people would you say who own guns own at least one Remington? It's gotta be no less than 1/4, probably more like 1/3. Who has seen Remington the last time they were gun or ammo shopping? Who has at least one box of Remington ammo in their closet? Now combine that thought with a wide open market--a VERY TINY percentage of gun owners own suppressors. I bet at least half the problem is they don't know where to get them or who makes them, probably half of that problem being they don't know they can get them at all. What a HUGE revelation it would be to them that not only they can get one, but Remington not only makes one, but makes a very good one.

This could be the biggest gun marketing breakout since Glock in the 90's.

If they do that it's going to make the antis crap their collective pants.

[yellowfin]

Here's Remington's own press release.

http://www.remington.com/library/press/2009/corporate/2009-15.asp
Remington® Acquires Advanced Armament Corp™



Madison, NC –Remington Arms Company, Inc. through a wholly owned subsidiary has entered into a purchase agreement to acquire certain assets of Advanced Armament Corp (AAC). The transaction closed on October 2, 2009.

Located in Norcross, Georgia, AAC is an industry-leading supplier of signature noise reduction and flash reduction devices and combat-related accessories for the military, government and commercial markets. With their innovative design concepts, technologically-advanced manufacturing techniques and core focus on the end-user, AAC silencers and accessories have been selected by major firearms manufacturers, law enforcement agencies, commercial consumers, and military organizations globally since the company’s inception in 1999.

AAC will continue day-to-day operations at their Georgia-based location under the guidance of company founder, Kevin Brittingham, and report to the Remington Military Products Division (MPD).

“We welcome Kevin and his team of engineers and designers on board,” commented Theodore (Ted) Torbeck, CEO of Remington and its parent, Freedom Group, Inc. “With the acquisition of AAC, we can enhance our research and development capabilities and deliver a more competitive product to the end user; further strengthening Remington’s position in the domestic and international markets.” I really, REALLY look forward to seeing green and yellow boxed Remington marked cans. That's not the first thing they're going to be doing, as that's going to be catching up with back orders, but you can bet every dime you have they're going to do it sooner than later.

[technique]

Huh....Rem will probly never get a Mil contract with AAC cans. AAC may be the Most popular...but far from best can IMO.

[freakshow10mm]

The cans won't be marked Remington. They will be marked AAC like normal. I did hear a rumor from a reliable source that stated starting 2010 they will be marked "Remington-AAC".

[Pvt. Cowboy]

The biggest thing that Remington could bring is their brand name. They are probably THE biggest name in civilian firearms sales--no suppressor company has 1% of that kind of market penetration and (brand recognition). A Remington brand suppressor would have a mainstream recognizable name that carries immense weight. ....

This could be the biggest gun marketing breakout since Glock in the 90's.

I understand what you're getting at here, but remember that Remington's acquisition of the MagPul Masada didn't put any of them in civilian hands as MagPul intended to. You were already supposed to be seeing the Masada in commercial gun shops by now, remember? Look at how Remington changed the crap out of it...

The bigger picture right now is that AAC is yet another third hand acquisition of the big shadowy Cerberus Capital Management (http://en.wikipedia.org/wiki/Cerberus_Capital_Management) group originating out of Wall Street:

Firearms - Acquired Bushmaster Firearms, Inc., from Windham, Maine native Dick Dyke for an undisclosed sum in April 2006, and purchased Remington Arms in April 2007. Under Cerberus direction, Bushmaster Firearms acquired Cobb Manufacturing, a well-respected manufacturer of large-caliber tactical rifles in August 2007. Cerberus also acquired DPMS Panther Arms December 14, 2007. Remington Arms acquired Marlin Firearms in January 2008.

[technique]

The cans won't be marked Remington. They will be marked AAC like normal. I did hear a rumor from a reliable source that stated starting 2010 they will be marked "Remington-AAC".

I still don't understand why Rem is interested in AAC...got any reliable source on that?

AAC to the best of my knowledge has never done a public torture test of their own products, nor against any competitors.

The one test I did see of a popular AAC can...the can failed. Less than 300 rnds IIRC...1 mag semi/1 mag FA...so on until failure. That in no way stacks up to other cans on the market.

[uzigalil]

Does Remington Also get AAC's xray machine and Band saw in the deal

[yellowfin]

Even if AAC isn't the best, which I can't say one way or another, the Starbucks Effect will occur: the big name stimulates the market and others will feed the newly created appetite which will be big enough to go around for everyone but could only be created by someone making the big enough splash to get it going.

[technique]

Even if AAC isn't the best, which I can't say one way or another, the Starbucks Effect will occur: the big name stimulates the market and others will feed the newly created appetite which will be big enough to go around for everyone but could only be created by someone making the big enough splash to get it going.

That is basically what has happened already.

However, the last Mil contract AAC lost out on was to KAC.

And, OPS also holds US and Canadian contracts....they have NO marketing. They are just good Cans, and they speak for them selves

[freakshow10mm]

I still don't understand why Rem is interested in AAC...got any reliable source on that?
I wish I did. Time will tell.

AAC to the best of my knowledge has never done a public torture test of their own products, nor against any competitors.

The one test I did see of a popular AAC can...the can failed. Less than 300 rnds IIRC...1 mag semi/1 mag FA...so on until failure. That in no way stacks up to other cans on the market.
Yep. Titsworth does testing but just for sound suppression. He doesn't torture them.

Does Remington Also get AAC's xray machine and Band saw in the deal
And their EDM machine, since they bought all intellectual property (patents) and assets (equipment).

Even if AAC isn't the best, which I can't say one way or another, the Starbucks Effect will occur: the big name stimulates the market and others will feed the newly created appetite which will be big enough to go around for everyone but could only be created by someone making the big enough splash to get it going.
Yep. I hope it works out great for all involved: Remington, AAC, civilians, LE, and the military. I hope this is the start to making suppressors as popular as ARs and M700s.

[technique]

Yep. Titsworth does testing but just for sound suppression. He doesn't torture them.


"Endurance test" was the correct word:)
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[freakshow10mm]

Nice. I've run the crap out of my YHM stainless phantom. Beta dumps and it still keeps on ticking.

[RobG]

Cans in CA? No way. Think of the poor defenseless puppies:D

[Bowser]

I want a surefire!

[joelukehart]

I want a surefire!

Me too! They are only 10 minutes up the 405 from me. But then again I would take an AAC, OPS Inc, KAC, John's Guns, YHM, Gemtech, AWC, Brugger & Thomet, or an Elite Iron can.

[yellowfin]

Soon, soon it will be time to demand suppressors in California.

[RobG]

Me too! They are only 10 minutes up the 405 from me. But then again I would take an AAC, OPS Inc, KAC, John's Guns, YHM, Gemtech, AWC, Brugger & Thomet, or an Elite Iron can.

Really? Oh the irony, you can build em in CA but, you can't own them here:rolleyes:

[freakshow10mm]

Same thing in MI. Suppressors are SOTs only. No civilian ownership.

[yellowfin]

With as much taxes are generated by suppressors, it strikes me as phenomenally stupid that a government entity would obstruct owning them, that a state government would be allowed to block them.

[technique]

With as much taxes are generated by suppressors, it strikes me as phenomenally stupid that a government entity would obstruct owning them.

$200.00 a pop.

[freakshow10mm]

Plus 11% FET paid by the manufacturer. Plus state sales tax at 5-9% depending on state. Figure 16-20% tax on top of the sale price.

[yellowfin]

Direct from the source:
We are working on a LOT of industry-expanding plans.

Silencers will continue to be branded AAC- that is what we do. But, Remington will help us get places we couldn't have before and do things bigger and faster and better. There will be various versions of cross marketing/etc.

this will all be for the better in terms of the industry, for AAC, for Remington, and for our customers- mil AND civ.
Yes, you will see more AAC in Remington ads...

Stay tuned!And since they're under the same company, I'd expect some direct marketing with DPMS as well.

[freakshow10mm]

I'm a bit skeptical but I wish them the best.

[technique]

I'm a bit skeptical but I wish them the best.

I hope so too....For a bit there I thought things would get ugly. They had a bunch of guys tattooed with their logo walking around for over a year starting to get upset.....but the Cans have finally started trickling in here and there.

[yellowfin]

I'm wondering if something can be done in Nevada, Arizona, and Oregon to make a concerted effort to have silencer shoots that people from CA can attend.

[technique]

I'm wondering if something can be done in Nevada, Arizona, and Oregon to make a concerted effort to have silencer shoots that people from CA can attend.

I'm still waiting on my approval...anyone is welcome to come up and play when I get it. I'm a short distance to Oregon and Nevada.:)

[retired]

I hope so too....For a bit there I thought things would get ugly. They had a bunch of guys tattooed with their logo walking around for over a year starting to get upset.....but the Cans have finally started trickling in here and there.

I can't imagine anyone getting logo of any kind tattooed on their body, can you.;)^

[freakshow10mm]

I wouldn't. Not for a suppressor even.

[yellowfin]

I wouldn't. Not for a suppressor even.Well that's because you make your own. That would be like me getting tattooed in exchange for a 5 star meal.

[freakshow10mm]

Even when I lived in Wisconsin and owned suppressors as a mere peasant, I wouldn't have done it.

[technique]

I can't imagine anyone getting logo of any kind tattooed on their body, can you.;)^

Heh...some people huh?;)

Trust me, I forget where they even are....lost in the sea of tattoos I call my body.:D

http://i285.photobucket.com/albums/ll42/technique408/DSCN1191.jpg
http://i285.photobucket.com/albums/ll42/technique408/AACtatpics002.jpg