Battenfeld develops and sells shooting, reloading, gunsmithing, and gun cleaning products under eight brand names, which are available at retailers Cabela’s, Bass Pro Shops, Dick’s Sporting Goods, and Gander Mountain, and online stores Amazon.com and MidwayUSA.
“Battenfeld Technologies provides us with a unique opportunity to acquire a thriving company that fits perfectly within our core firearm business,” said James Debney, Smith & Wesson president and chief executive officer.
With its sophisticated sourcing and distribution infrastructure, Battenfeld should provide a solid framework for growth as the new accessory division of Smith & Wesson, Debney said. He added that in the past accessories have been “a small but highly profitable part of our company.”
Smith & Wesson estimates that the acquisition will provide in excess of $55 million in revenue in the 2016 fiscal year.
Eventually all existing Smith & Wesson, Military & Police, and Thompson/Center Arms lines of accessories will be housed within the new division.
The 22-year-old company will continue to operate out of its 145,000 square foot facility in Columbia, Missouri, and its president, Jim Gianladis, will report directly to Debney.
Smith & Wesson purchased Battenfeld for $130.5 million from a private equity firm in Connecticut. To pay, Smith & Wesson will use existing cash balances and cash from a $100 million draw on an existing line of credit, which has recently been expanded to $125 million.
This year Smith & Wesson has seen a decline in sales, however, gun sales overall have dropped dramatically. Smith & Wesson reported a net income of $14.6 million for its third quarter, down from $26.5 million the same time last year.
The acquisition of Battenfeld isn’t the only groundwork Smith & Wesson has been laying. The iconic gun company announced plans last week to team with General Dynamics to win a handgun contract with the U.S. Army.
The Battenfeld agreement will finalize mid-December. Smith & Wesson will release more details during a conference call on Dec. 4.