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FN Manufacturing and FNH USA to merge

FNH USA, a Virginia company, will be merging with FN Manufacturing to create a new entity known as FN America. This should end some of the confusion that has existed about the two separate companies and their names. The planned merger was announced May 6 by the chief executive officer of Herstal Group, the Belgium company that owns the American side of Fabrique Nationale. Although the two companies will now be merged into one, their production side will remain in Columbia, South Carolina, and their business and management side will remain in McLean, Virginia.

Mark Cherpes, president of FNH USA, will serve as president of the new company. The president of FN Manufacturing will stay on in an advisory role. Cherpes says that the merger is designed to build a stronger, more agile company that is poised to meet the present and future needs of the U.S. market. Company officials also believe the merger will be beneficial in managing the production needs of its military and law enforcement product lines.

The Herstal Group has been in business 125 years. Its FN America companies manufacture firearms, including rifles and pistols. It is unknown as to whether the Winchester Arms Company and the Browning Arms Company, which are also owned by the Herstal Group, will be affected by the merger.

During a new business formation, it is critical to choose the business structure that will best facilitate company growth and minimize taxes. Whether a company is structured as a corporation, a limited liability company or another type of entity requires detailed knowledge of the company's goals as well as a thorough understanding of state business law.

Source: Guns.com, "FN and FNH to consolidate U.S. operations into FN America", Daniel Terrill , June 09, 2014