Smith & Wesson to Buy Knife Maker Taylor Brands for $85 Million
July 18 2016 - 10:20AM
Dow Jones News
Smith & Wesson Holding Corp.'s accessories unit, Battenfeld
Technologies, Inc., said Monday it would buy knife maker Taylor
Brands for $85 million in cash, expanding its knife and tool
portfolio.
Kingsport, Tenn.-based Taylor Brands has been a longtime
licensee for Smith & Wesson and M&P branded knives, and is
the direct owner of brands such as Schrade, Uncle Henry, Old Timer,
and Imperial. Smith & Wesson's Chief Executive James Debney
said the acquisition would help the company grow its accessories
division "by expanding into adjacent and complementary
markets."
The firearms maker said the deal is expected to close within
three to six weeks and won't impact its quarter ending July 31.
In its year ended April 30, Smith & Wesson reported
accessories division sales of $65.3 million, far smaller than its
firearms unit, where sales rose 24% to $657.6 million.
Smith & Wesson, which makes the best-selling handgun in the
U.S. and is the market leader in modern sporting rifles, has
benefited from concerns the government may seek new gun controls
after recent high-profile shootings. In June, the company reported
fourth-quarter earnings topped expectations.
Smith & Wesson shares are up 73% from a year ago and gained
1.8% to $28.85 in premarket trading.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
July 18, 2016 10:05 ET (14:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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