True Velocity has acquired an innovative weapons manufacturer amid its push to land a U.S. Army contract potentially worth billions.
The Garland-based composite ammunition maker announced scooping up LoneStar Future Weapons in a deal it values at around $84 million and makes LoneStar a wholly-owned subsidiary of True Velocity parent TV Ammo, Inc.
“The strategic acquisition enables True Velocity to extend its innovative approach to lightweight ammunition development and advanced manufacturing technology into the weapons industry,” A spokesperson for True Velocity said via email.
LoneStar was formed in 2020 by the same leaders that launched True Velocity, including CEO Kevin Boscamp and Chris Tedford, who serves as president of both companies. He is also the president of Automatic Products Corporation, which serves as a vendor to LoneStar and will remain an independent company. Combined, the two organizations have nearly 200 employees and 340 patents regarding weapons and projectile technology in its portfolio.
In April, LoneStar and True Velocity announced a strategic partnership to bolster their R&D and manufacturing capabilities as part of a bid to land the Army’s Next Generation Squad Weapons contract, which is looking for an updated weapon to replace its outdated M4A1 and M249 Squad Automatic Weapon. A spokesperson for True Velocity said the NGSW program is the largest in the Army’s history and the “awarded contract will reflect as much.”
True Velocity is one of two teams – the other involving firearms manufacturer SIG Sauer – left in the NGSW program, which is expected to name a winner in January.
“The collective organizations allow us to continue a next-gen system approach to development, take advantage of next-gen technology advancements, and input those into the products we develop for our customer,” the spokesperson wrote. “Our collective organizational emphasis on innovation ensures the pursuit of continued improvement and evolutionary products.”
True Velocity was initially working with General Dynamics Ordinance and Tactical Systems as a subcontractor for its advanced composite-cased cartridges on its NGSW bid. In June, General Dynamic, which was working with Beretta USA as a production partner, novated its prime contractor role to LoneStar. Automated Products was also a subcontractor for General Dynamics on the bid.
In October, True Velocity, which was founded in 2010, announced securing $30 million in debt financing from Silver Peak Partners. With that funding, the company said it was looking to ramp up manufacturing capabilities in anticipation of winning the contract. It’s currently looking to expand its nearly 66,000-square-foot Garland facility, which can produce around 58 million rounds per year. LoneStar vendor Automated Products operates a 118,000-square-foot manufacturing facility in Garland, as well.
Tedford previously told the Dallas Business Journal that True Velocity’s main customers are domestic and foreign militaries and law enforcement groups, with some of its ammunition available commercially. In addition to its work on the NGSW program, the company teased more commercial products in the future, in addition to plans to develop a lightweight medium machine gun.
“Incorporating LoneStar Future Weapons' innovative approach to weapon design and manufacture, along with their significant intellectual property portfolio and licensing expertise… provides a path forward for the development and co-optimization of advanced weapons and munitions for the U.S. Department of Defense, our international allies and the domestic commercial market,” Boscamp said in a statement.
