Australian defence contractor NIOA ramps up global expansion with acquisition of Barrett Firearms

Australian defence contractor NIOA will buy one of the biggest suppliers of long-range rifles to the US military in a deal that doubles the size of the Queensland firm.

NIOA chief executive Robert Nioa with a Barrett rifle.

NIOA will buy one of the biggest suppliers of long-range rifles to the US military in a deal that doubles the size of the Queensland defence contractor.

NIOA announced on Tuesday morning it would take over Tennessee-based Barrett Firearms, which rose to prominence in the 1990s after supplying long-range rifles to the US military during Desert Storm. Financial terms of the deal were not disclosed but according to Kona Equity, Barrett has annual revenues of about $120m.

The acquisition will double NIOA’s total workforce to 400 people and move it from being primarily a distributor of weapons to a globally renowned weapons manufacturer. Barrett also supplies weapons to more than 70 countries around the world approved by the US State Department.

NIOA chief executive Robert Nioa said Barrett executives Ronnie and Chris Barrett would stay on as advisers to the combined group following the acquisition.

Founded in 1982, the company’s first rifle was designed by Ronnie Barrett at his dining room table, before being used in operations Desert Shield and Desert Storm in the Middle East.

Mr Nioa said the Barrett story had been one of hard work and perseverance, culminating in the delivery of critical capability for the US military and its allies.

“Together we share the same mission – combining our expertise and family business values will ensure Barrett carries on building the finest products in the world,” Mr Nioa said.

Ronnie Barrett said it was reassuring that the business he founded would be in “good hands” with a family-owned company focused on firearms and munitions to a global market.

“Rob and the NIOA team have great respect for the legacy Barrett has created in long-range precision rifles,” Mr Barrett said.

NIOA said all workers and management at Barrett’s manufacturing facility in Murfreesboro, Tennessee, would be retained and production would continue as normal. There were plans to expand manufacturing over time.

NIOA last year embarked on its biggest hiring spree in its 50-year history as rising global tensions push countries to boost defence spending. Founded near Maryborough in 1973, NIOA is working on a number of defence contracts including ammunition for the Abrams main battle tank.

NIOA’s subsidiary, the Australian Missile Corp, is among the contenders for the government’s $1bn guided weapons program.

NIOA is now Australia’s largest privately owned company supplying firearms, weapons and ammunition to military, law ­enforcement and commercial markets.