Combined Systems acquires Penn Arms

Published 18 June 2008

As interest in less-lethal and tactical munitions grows, the acquisition of specialty arms manufacturer by a leading branded munitions maker would allow both to pursue new market opportunities more aggressively

Combined Systems (CSI), a munition manufacturer for the military and law enforcement markets, has completed the acquisition of Punxsutawney, Pennsylvania-based Penn Arms, a manufacturer of specialty firearms. Financial terms were not disclosed. Founded in 1989, Penn Arms develops and manufactures various caliber firearms for law enforcement and military applications. Penn Arms specializes in single and multi-shot launchers capable of deploying different types of ammunition used in riot suppression and other crowd control operations. Richard Edge, COO of CSI, stated: “We are extremely happy about completing the acquisition of Penn Arms and welcoming them as part of the CSI team. Their excellence in developing and manufacturing specialty firearms is only matched by the high-level and personal customer service that they provide. We believe that this acquisition will assist in furthering the consistent growth of CSI in the law enforcement and military markets.” Hans Kornberger, co-founder of Penn Arms, will continue to manage the operations of the Company. “I am excited about the road ahead and expansion possibilities of teaming up with CSI” said Kornberger. He added, “We have been working closely with CSI for many years and we believe that all of our current customers will benefit as we expand our capabilities throughout the military and law enforcement markets.”

The acquisiton will benefit both companies. Penn Arms, with a solid reputation in the tactical and non-lethal launcher market, will be in a stronger position to pursue opportunities throughout the world through the CSI marketing and distribution channel. The timing is opportune, too, as growing interest from governments and law enforcement agencies help drive the growth of the less-lethal and tactical defense markets. Founded in 1981, CSI is a manufacturer of branded products including less-lethal munitions, tactical munitions, warning signal rounds, pyrotechnic fuzes, anti-riot products, and missile components. The company has executive offices in Great Neck, New York, and manufacturing facilities located in Jamestown, Pennsylvania.

CSI is majority owned by Point Lookout Capital Partners, L.P., a New York-based investment firm focused on leveraged buyouts and growth investments in middle market companies. Carlyle Mezzanine Partners, a division of the Carlyle Group, also participated in the acquisition of the company.