Belgian group FN Browning has submitted a firm offer to acquire the French arms manufacturer Verney-Carron, based in Saint-Etienne and under judicial administration since 12 February, sources told AFP on Monday.
The Belgian group confirmed to AFP that it submitted a "firm offer for a majority takeover" of the company owned by French group Cybergun after several months of negotiations, corroborating information from French media La Tribune.
According to a source close to the matter, this reputable small arms manufacturer’s offer will enable "a resumption of production, which is currently significantly slowed by the partial activity of most of the 68 employees since December."
FN Browning plans to acquire 70% of Verney-Carron Development’s capital and will invest several million euros in the SME, whose cash flow problems are hindering the fulfilment of certain orders.
The industrial operations will remain in Saint-Etienne, and the focus on the defence sector will be confirmed. However, the workforce is expected to be reduced by up to ten employees, a source involved in the deal told AFP.
Founded in 1820, Verney-Carron is the last French small arms manufacturer. Initially specialising in hunting weapons, the factory invented and marketed Flashballs in 1990, defensive weapons used by the French national police for around twenty years.
Its recent shift to producing small calibre war weapons has not compensated for the loss of Ministry of the Interior contracts and the decline in sales of hunting and shooting rifles.
