Smith & Wesson acquires gun accessory company for $130 million

Smith & Wesson Holding Corporation agreed to acquire Battenfeld Technologies, Inc. for roughly $130 million last week, expanding its abilityĀ to produce hunting and shooting supplies.

Battenfeld develops and sells shooting, reloading, gunsmithing, and gun cleaning products under eight brand names.

ā€œBattenfeld Technologies provides us with a unique opportunity to acquire a thriving company that fits perfectly within our core firearm business,ā€ 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 ā€œa small but highly profitable part of our company.ā€

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,Ā 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 millionĀ the same timeĀ last year.

The acquisition of Battenfeld isnā€™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 agreementĀ willĀ finalize mid-December. Smith & Wesson will release more details during a conference call on Dec. 4.

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