Minneapolis, Minnesota: Quazar Capital Corporation is pleased to announce that their client, Magnum Research, Inc. a Minnesota based Handgun Manufacturer and Distributor, has been acquired by New York-based Kahr Arms, a subsidiary of Saeilo Enterprises, Inc.
The Company: Magnum Research Inc. is privately held with two locations in Minnesota. The Company manufactures and distributes branded pistols, rifles, and related accessories. Magnum Research is widely known for the design and development of the Desert Eagle Pistol, the world’s first .50 Caliber semi-automatic handgun. Magnum Research’s other well-known products include Baby Desert Eagle “Fast Action” Pistol, Desert Eagle 1911 Pistol, Micro Desert Eagle Pistol, Magnum Research BFR (Biggest Finest Revolver), Magnum Lite Rifle, Mountain Eagle Rifle, branded ammunition, and accessories.
The Situation: After reviewing several options, Magnum Research made a strategic decision to find an Industry-focused buyer with proven firearms manufacturing operations and experience. Magnum Research selected Quazar Capital to assist them for several reasons; first and foremost, Quazar Capital has an extensive history of working with the Outdoors Sporting Goods Industry and knew many of the companies that could be potential partners. Additionally, Magnum Research needed the focus and attention of a boutique shop, one that would give the situation the priority it merited.
Unique Challenge: Magnum Research was pressed financially and the selling Shareholders had high expectations for performance. The acquiring company would need to share the current Shareholder’s dedication to produce quality products, provide a healthy work environment for Magnum’s employees, and be able to complete a financially reasonable transaction within a tight time frame.
The Resolution: Quazar Capital targeted the Industry looking for a qualified, strategic fit for its Client. Quazar Capital’s process was able to narrow the field down to four final parties that appeared to meet the stringent criteria demanded by their Client. From there, offers were solicited and eventually Kahr Arms surfaced as the best overall fit for Magnum Research, Inc.