Breaking Barriers: A Bold Merger in the Firearms Industry
In a move that’s likely to raise eyebrows on Wall Street, Colombier Acquisition Corp. II, a special purpose acquisition company led by Omeed Malik, has agreed to merge with online firearms retailer GrabAGun. The deal, valued at approximately $150 million, is expected to be announced as early as Monday, pending no last-minute hiccups.
A Unique Approach to ESG Principles
Malik, a former Bank of America Corp. executive, has built a reputation for backing companies that operate outside the traditional ESG (Environmental, Social, and Governance) framework. His investment firm, 1789 Capital, focuses on supporting businesses that cater to conservative values and are often overlooked by mainstream investors.
A Parallel Economy Takes Shape
Colombier’s first SPAC merged with PSQ Holdings Inc., the owner of online marketplace PublicSquare, which connects “patriotic” consumers and businesses. This parallel economy is gaining traction, with PSQ expecting to process over $1.8 billion in gun and firearm-related transactions in 2025. The company recently named Donald Trump Jr. to its board, further solidifying its ties to conservative values.
GrabAGun: A Profitable and Growing Business
Dallas-based GrabAGun, led by CEO Marc Nemati, has delivered impressive results, with revenue reaching roughly $100 million in 2024. The company, founded in 2011, sells firearms, ammunition, and apparel, and proudly quotes the Second Amendment on its website.
A Market Opportunity
The merger comes as US unadjusted criminal background checks reach a 20-month high, indicating a surge in firearms sales. Colombier, which raised $170 million in its November 2023 IPO, is well-positioned to capitalize on this trend. The company’s shares closed Friday at $11.79, giving it a market value of about $200 million.
A New Economic Landscape
In a securities filing ahead of its IPO, Colombier hinted at its vision for an economic landscape where values-aligned business transactions become the norm. With this merger, the company is taking a bold step towards realizing that vision. As the US firearms market continues to grow, Colombier and GrabAGun are poised to reap the benefits.
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