Smith & Wesson Announces Major Acquisitions
By Jade Moldé, SI Editor
Smith & Wesson Holding Corp. announced it has signed a definitive agreement to acquire Crimson Trace Corp. for $95 million, subject to certain adjustments, using cash on hand. With this acquisition, Smith & Wesson announced the establishment of a new Electro-Optics Division to complement its Firearm and Accessories divisions. S&W completed the transaction in late August.
“Crimson Trace provides us with an exceptional opportunity to acquire a thriving company that is completely aligned with our strategy to become a leader in the market for shooting, hunting, and rugged outdoor enthusiasts,” said James Debney, S&W president and CEO. “As the undisputed leader in the market for laser sighting products, Crimson Trace serves as an ideal platform for our new Electro-Optics Division. Firearms purchasers frequently buy electro-optic accessories to enhance the capabilities and performance of their firearms.”
Lane Tobiassen, who joined Crimson Trace in 2005, will serve as president of S&W’s new Electro-Optics Division, and will report directly to Debney. Crimson Trace’s management team and workforce, as well as its base of operations, will remain in Wilsonville, Ore.
“It’s a great honor to lead Crimson Trace into this exciting new chapter in our history by joining the Smith & Wesson team,” said Tobiassen. “As the new Electro-Optics Division of Smith & Wesson, we believe our capabilities, combined with inorganic opportunities to acquire related technologies, will expand the reach of our existing market footprint. We look forward to offering consumers exceptional performance from two of the industry’s most trusted names.”
“The growth that Crimson Trace has delivered is a testament to the high product quality and the robust product development capability that Lane Tobiassen and his team have established. That capability, combined with Crimson Trace’s leadership position in the market for laser sights, provides a solid framework for organic and inorganic growth,” Debney said.
Using existing cash balances, S&W purchased all of the outstanding stock of Crimson Trace for $95 million from Crimson Trace Holdings LLC, which is owned by private equity firms Peninsula Capital Partners LLC and VergePointe Capital LLC; Lewis Danielson, Crimson Trace founder and chairman of the board; a small group of minority owners and certain members of management.
At the date of signing, according to S&W Executive VP and CFO Jeffrey Buchanan, Crimson Trace’s 12-month revenue was approximately $44 million, one-quarter of which was from S&W and “would be excluded from [S&W’s] consolidated revenue.”
S&W’s Battenfeld Technologies Acquires Taylor Brands
A week prior to the Crimson Trace acquisition announcement, S&W’s Accessories Division, Battenfeld Technologies Inc., signed a definitive agreement to purchase the assets of Taylor Brands LLC, a designer and distributor of knives and specialty tools for $85 million. Acquired by S&W in 2014, Battenfeld Technologies announced a newly formed, wholly owned subsidiary: BTI Tools LLC, which purchased Taylor Brands.
Founded in 1975, Taylor Brands has been a long-standing licensee for both S&W and M&P branded knives and is the owner of several brands including Schrade, Uncle Henry and Old Timer.
“Taylor Brands provides us with an ideal opportunity to further deliver on an important element of our strategic plan, which is to grow our Accessories Division by expanding into adjacent and complementary markets,” Debney said. “Today’s announcement moves us closer to our vision, which is to become the leading provider of quality products for the shooting, hunting, and rugged outdoor enthusiast.”
“We look forward to achieving our next level of growth and continuing to serve our loyal customers as part of Smith & Wesson and with the benefit of Battenfeld Technologies’ extensive distribution network and product development processes,” said Morgan Taylor, president of Taylor Brands.
Remington Opens Mississippi Distribution Center
Remington Outdoor Co. (ROC) announced its new worldwide distribution center in Southaven, Miss., was open for business in late July.
Remington says the Southaven Distribution Center serves as a model for others, with strong product management capabilities, extensive logistics and transportation infrastructure and key geographic location.
The company enlisted key support from the surrounding community, from local elected officials and management to the local workforce that is manning the operation.
“We are looking forward to a great partnership with the state of Mississippi and the wonderful community of Southaven. Specifically, I would like to thank the Desoto County and Southaven Economic and Planning Development Offices, Southaven City Officials, Proventure Real Estate, Ozburn Hessey Logistics (OHL/MHR), Colliers International and also Panattoni Development Company for their hard work and dedication, without which this crucial investment would not have occurred,” said ROC CEO Jim (“Marco”) Marcotuli.
The Remington family of companies has 12 locations across nine states, employing over 3,500 people and distributing products throughout the U.S. and in 55 foreign countries.