The exact price of the purchase is approximately $130.5 million, but it’s subject to post-closing adjustments. Smith & Wesson bought Battenfeld with existing cash balances and cash from a $100 million draw on its $125-million line of credit.
Smith & Wesson sought the deal to broaden its platform to produce hunting and shooting supplies. Battenfeld develops and sells shooting, reloading, gunsmithing, and gun cleaning products under eight brand names that are available at most major sporting goods stores and online retailers
Eventually all existing Smith & Wesson, Military & Police, and Thompson/Center Arms lines of accessories will be housed at Battenfeld’s facility in Columbia, Missouri.
The gun maker estimates Battenfeld will bring in an additional $55 million in annual revenue, a desired boost to keep investors happy as sales continue to normalize from last year’s spike.
Last week, Smith & Wesson reported $19.6 million in net income six months into fiscal year 2015, down from $43.5 million for last year’s second quarter.
The Battenfeld acquisition 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.