Palmetto State Armory Acquires Destructive Devices Industries
After a week or so of speculation, it has now been confirmed – Palmetto State Armory (PSA) and Destructive Devices Industries (DDI) are joining forces. The news was first broken last week by Rob Ski over at AK Operators Union, but PSA (and their parent company, JJE Capital) formally announced their acquisition of DDI in a press release on Monday.
Columbia, S.C. (January 2, 2017)– In an acquisition that strengthens the USA made AK market, JJE Capital (PSA’s parent company) announced the purchasing of a majority equity interest in the boutique firearms manufacturer and importer Destructive Devices Industries. Palmetto State Armory CEO Jamin McCallum was quoted saying “This move will allow a concentrated effort by both PSA and DDI to continue the growth of the all American made AK-47 and its variants.” David Fillers of DDI will continue with the company as a financial partner as well as in an advisory role, he was quoted saying; “It was time to take DDI to the next level, and the best way I saw to do that was to partner with a proven industry leader.” Both PSA and DDI will remain separate entities, but will partner on R&D and compatibility in all related fields in order to pass on the benefit to the customer. This level of detail will be acquired through a joint venture between the two companies known as the “AK Excellence Center” which will be located in Columbia, SC and will focus on new developments for the iconic firearm. DDI also announced that its focus moving forward will be the US production of quality rifles. DDI will continue to stand behind all imported items that were previously sold, but from this point forward will no longer be a firearms importer. Adam Ruonala, Chief Marketing Officer of Palmetto State Armory said; “This move is a chance for two innovators of the American AK platform to come together, and with that kind of creativity at the helm, there is no telling how far this ship can go!”
And there you have it. Rifles bearing the DDI name will continue to roll out, but will now hail from South Carolina, as opposed to DDI’s previous Tennessee home. Imports from DDI, like the DDI-12 will be discontinued to shift focus to American-made rifles. And lastly, it looks like Troy Sellers will be free to return to his own gig at In Range.
The move is noteworthy, but not necessarily surprising. While I expect their now-joint efforts toward quality, US-made AKs to continue, it is impossible to deny that their anticipated market has always been highly speculative. Faced with ever tightening import regulations, the Kalashnikov market here in the United States has suffered from unreliable availability and increasing prices. When PSA and DDI both set out to create American AKs, they were doing so in response to these market conditions. Donald Trump’s victory in November’s elections has certainly improved the outlook for AK collectors, but companies like PSA and DDI have been left with expensive initiatives that may be undermined by Kalashnikov imports. Rather than undercut one another, joining forces allows the two companies to compete directly with European AKs.
Both have also stated that the move addresses areas of strength and weakness between the two brands. PSA’s extensive lineup of AR-related products is a testament to their manufacturing capacity, but to this point, they haven’t been able to get forged AK parts out the door. DDI is heavily invested in Kalashnikov forgings, but as a very small company, lacked manufacturing and testing capacity. Their common hope is that the merger will help to seal these gaps.
I’ll see if there’s any more to learn when SHOT Show rolls around in two weeks.
An information security professional by day and gun blogger by night, Nathan started his firearms journey at 16 years old as a collector of C&R rifles. These days, you’re likely to find him shooting something a bit more modern – and usually equipped with a suppressor – but his passion for firearms with military heritage has never waned. Over the last five years, Nathan has written about a variety of firearms topics, including Second Amendment politics and gun and gear reviews. When he isn’t shooting or writing, Nathan nerds out over computers, 3D printing, and Star Wars.