As part of an ongoing effort to expand into firearm accessories and outdoor goods, conglomerate American Outdoor Brands Corporation acquired silencer maker Gemini Technologies, according to Wednesday’s announcement.
“We view this acquisition as opportunistic, allowing us to enter the suppressor category, which resonates strongly with our core firearm consumer, at a time when the market is particularly soft,” said James Debney, AOBC president and chief executive officer. “These elements combine to make Gemtech an excellent fit with our long term strategy.”
AOBC, formerly Smith & Wesson Holding Company, has developed a large portfolio of brands to supplement its top earner gun maker Smith & Wesson since 2014.
“Gemtech is widely recognized for producing some of the finest rifle and pistol suppressors in the market,” Debney said, adding Gemtech’s specialty will help AOBC’s other brands “efficiently develop both firearms and suppressors, minimizing our time to market for both product categories.” AOBC did not list the price of the acquisition.
Over the past decade, silencers have carved out niche in the arms industry, and created a lucrative market, despite restrictive regulations. However, legislative efforts to lift regulations have resulted in a slowdown in the industry, as consumers are waiting to bypass lengthy legal hurdles and registration before acquiring a silencer. Yet, there’s no discernible timeline to pass aforementioned legislation.
Debney said Gemtech will maintain current management and its facilities in Eagle, Idaho. The company, founded in 1976, sells silencers to consumers as well as military and police all around the world.
AOBC ended its fiscal year with $903.2 million in sales, according to its annual earnings report filed last week. Gun sales made up the lion’s share, with 85.6 percent of the total, while accessories and outdoor goods contributed $130.2 million.