Smith & Wesson® Announces Closing of Transaction to Vertically Integrate Precision Plastic Molding Supplier
- Asset Acquisition Completed On Schedule
- Transaction Expected to be Accretive to Current Fiscal Year Gross Margin and Earnings
SPRINGFIELD, Mass., May 5, 2014 /PRNewswire/ -- Smith & Wesson Holding Corporation (NASDAQ Global Select: SWHC), a leader in firearm manufacturing and design, today announced that it has successfully completed, through a newly formed, wholly owned subsidiary called Deep River Plastics, LLC, the purchase of substantially all of the assets of Tri Town Precision Plastics, Inc., a provider of custom injection molding services, rapid prototyping, and tooling, and a key polymer parts supplier to Smith & Wesson. Through the transaction, which was originally announced on March 24, 2014, Smith & Wesson acquires a state-of-the-art operation housed in 150,000 square feet of leased manufacturing space that incorporates 45 injection molding machines and complete tool-building capabilities. Smith & Wesson paid $22.8 million for the acquired assets, using cash on hand.
James Debney, President and Chief Executive Officer of Smith & Wesson, said, "With the closing of this transaction, which is expected to be accretive to our fiscal 2015 gross margin and earnings, we have taken an important step in support of our strategic focus on our M&P firearm business. By vertically integrating this key component of our supply chain, we intend to increase our flexibility, lower our production costs, reduce risk within our supply chain, and enhance our new product development process."
Wedbush Securities acted as financial advisor to Smith & Wesson in the transaction.
About Smith & Wesson
Smith & Wesson Holding Corporation (NASDAQ Global Select: SWHC) is a U.S.-based leader in firearm manufacturing and design, delivering a broad portfolio of quality firearms, related products, and training to the global military, law enforcement, and consumer markets. The company's brands include Smith & Wesson®, M&P® and Thompson/Center Arms™. Smith & Wesson facilities are located in Massachusetts and Maine. For more information on Smith & Wesson, call (800) 331-0852 or log on to www.smith-wesson.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, which provides a "safe harbor" for such statements in certain circumstances. The forward-looking statements include statements or expectations regarding our belief that this acquisition supports our strategic focus on our M&P firearm business; that the acquisition of this capability will increase our flexibility, lower our production costs, reduce risk within our supply chain, and enhance our new product development process; and that this acquisition will be accretive to current fiscal year gross margins and earnings and add a state-of-the-art operation. These statements are based on our current expectations, estimates, projections, beliefs, and assumptions. Such statements involve significant risks and uncertainties. Actual events or results could differ materially from those discussed in the forward-looking statements as a result of various factors, including, but not limited to, difficulties in integration of the acquired assets; loss of key personnel; loss of other customers; and other factors discussed in greater detail in our filings with the Securities and Exchange Commission (SEC), including our Report on Form 10-K, for the year ended April 30, 2013. You are cautioned not to place undue reliance on such statements and to consult our SEC filings for additional risks and uncertainties that may apply to our business and the ownership of our securities. Our forward-looking statements are presented as of the date made, and we disclaim any duty to update such statements unless required by law to do so.
Contact: Liz Sharp, VP Investor Relations
Smith & Wesson Holding Corporation
SOURCE Smith & Wesson Holding Corporation