True Velocity to Buy Weapons Designer LoneStar for $84 Million
Ammunition technology provider True Velocity will acquire American defense firm LoneStar Future Weapons in a deal valued at $84 million.
As part of the agreement, LoneStar will operate as a subsidiary of TV Ammo, the parent company of True Velocity. Its next-generation weapons and projectile technology would also be patented to True Velocity’s lightweight ammunition portfolio.
According to LoneStar Chairman Craig Etchegoyen, his company is “extremely excited” to collaborate with the Texas-based firm in integrating its recoil-mitigation technology in developing polymer ammunition.
“Together, our American-owned, American-based companies will provide our warfighters with the very best weapons and ammunition to protect our nation,” he explained in a press release.
Earlier this year, the two companies formed a partnership to compete in the US Army’s Next Generation Squad Weapons program. They are currently one of the two teams that remain under consideration for the program.
‘Leveraging Business Efficiencies’
Founded in 2010, True Velocity has an ammunition production capacity of 58 million rounds per year. Its merger with LoneStar would reportedly leverage substantial synergies and business efficiency to better produce advanced military weapons and ammunition.
The partnership will also improve the research, design, and precision manufacture of lightweight bullets with polymer casings. This could have a lasting and meaningful impact on the lethality of US fighting forces, according to True Velocity Chairman Kevin Boscamp.
“It provides a path forward for the development and co-optimization of advanced weapons and munitions for the US Department of Defense, our international allies, and the domestic commercial market,” he remarked.
In addition to operating as a TV Ammo subsidiary, LoneStar will collaborate with True Velocity in developing a lightweight medium machine gun and other consumer-oriented products.