Tag Archives | S&W

Breaking: Smith & Wesson to Acquire Crimson Trace Corporation

From Crimson Trace:

SPRINGFIELD, Mass., July 25, 2016 — Smith & Wesson Holding Corporation (NASDAQ Global Select: SWHC), a leading manufacturer of firearms and a provider of quality accessory products for the shooting, hunting, and rugged outdoor enthusiast, today announced that it has signed a definitive agreement to acquire Crimson Trace Corporation (Crimson Trace), the industry leader in laser sighting systems and tactical lighting for firearms, for $95.0 million, subject to certain adjustments, utilizing cash on hand.

Crimson Trace has long been a key supplier of laser sighting systems for Smith & Wesson.  For more than two decades, Crimson Trace has provided consumers, military units, and law enforcement officers around the globe with the world’s largest selection of award-winning laser sight and tactical light products.  Crimson Trace offers more than 225 products and is widely recognized as the world’s leading brand of laser sights for firearms.  Its award-winning innovations include the Lasergrips®, Laserguard®, and Rail Master® platforms.  The company’s product line also includes the Defender Series®, Lightguard®, and its new LiNQ™ wireless activation system.  Based in Wilsonville, Oregon, Crimson Trace operates from a 50,000 square foot , leased facility where it engineers and manufactures its products.

Crimson Trace was founded 22 years ago and has organically generated a ten year compound annual revenue growth rate in excess of 10%.  The company maintains a product development team that has an established track record of launching high-quality, innovative laser sighting products.  As a result, its products maintain a premium position with hundreds of independent retailers as well as large sporting goods retailers, including Cabela’s, MidwayUSA, Nation’s Best Sports, and internet retailer Optics Planet, Inc.

James Debney, Smith & Wesson President and Chief Executive Officer, said, “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.  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.  The growth that Crimson Trace has delivered is a testament to the high product quality and the robust product development capability that Lane Tobiassen, President and Chief Executive Officer of Crimson Trace, 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.”

Lane Tobiassen, who joined Crimson Trace in 2005, will serve as President of the new Electro-Optics Division of Smith & Wesson, and will report directly to Debney.  The Crimson Trace management team and workforce, as well as its base of operations, will remain in Wilsonville, Oregon after the acquisition.

Tobiassen said, “It is a great honor to lead Crimson Trace into this exciting new chapter in our history by joining the Smith & Wesson team.  Since 1994, we have designed and brought to market more than 225 products, all of which reflect the passion, dedication, and spirit of innovation of our design engineers, production workforce, customer service representatives, and marketing and sales professionals.  As the new Electro-Optics Division of Smith & Wesson, we believe that our capabilities, combined with inorganic opportunities to acquire related technologies, will expand the reach of our existing market footprint.  This makes us a great fit for Smith & Wesson, a legendary company with an iconic brand, world-class products, and markets that include consumer, law enforcement, and international channels.  We look forward to offering consumers exceptional performance from two of the industry’s most trusted names.”

Smith & Wesson will purchase all of the outstanding stock of Crimson Trace for $95.0 million, using existing cash balances.  Crimson Trace is being acquired from Crimson Trace Holdings, LLC, which is owned by private equity firms Peninsula Capital Partners, LLC and VergePointe Capital, LLC; Lewis Danielson, the founder and Chairman of the Board of Crimson Trace; a small group of minority members; and certain members of management.

Jeffrey D. Buchanan, Executive Vice President and Chief Financial Officer of Smith & Wesson, stated, “As a result of our strong balance sheet, we intend to complete the purchase of Crimson Trace with cash on hand and we expect the transaction to close in three to six weeks. After the closing date, we expect the acquisition to be accretive to Smith & Wesson’s earnings per share in fiscal 2017.  Due to its anticipated timing, the transaction is expected to have no impact on Smith & Wesson’s operational and financial results for the fiscal 2017 first quarter ending July 31, 2016.  As of the date of signing, Crimson Trace’s trailing 12 month revenue was approximately $44.0 million, of which approximately 25% was revenue from Smith & Wesson and would be excluded from our consolidated revenue.  The purchase price represents an estimated multiple of approximately 5.9x the trailing 12 month adjusted EBITDAS of Crimson Trace.  We look forward to providing additional details following the close of the transaction.”

Cowen and Company, LLC is acting as exclusive financial advisor and Greenberg Traurig, LLP is acting as legal advisor to Smith & Wesson and its Board of Directors.  Robert W. Baird & Co. is acting as exclusive financial advisor and K&L Gates LLP is acting as legal advisor to Crimson Trace and its owners.

S&W Shield 10035 – No Thumb Safety!

The S&W Shield that we should have received in the first place is about to be bestowed upon us! The new Shield model 10035 will be identical to the current Shield save for one important feature – or lack there of… It will not have a thumb safety!

This is good news for those who have waited and still pretty good news for those who have a Shield with a safety. It is the best news for all 5 of you out there who want the thumb safety because there is about to be a ton of Shields with safeties on the secondary market.

These will start shipping in mid-June.

10035_9mmShield_Flyer-1 10035_9mmShield_Flyer-2

White Sound Defense S&W M&P Guide Rod and Recoil Spring

White Sound Defense (WSD) has just introduced their latest guide rod for the Smith & Wesson M&P. WSD doesn’t make just any run of the mill steel guide rod. Their designs have functionality you won’t find anywhere else and the typical attention to materials, coatings, and designs that you have come to expect from WSD.

WSD G19 Guide Rod

The most noticeable feature of their guide rods is their extended length. The guide rod actually sticks out from the muzzle end of the M&P slightly to act as standoff in the event that a contact shot must be delivered. The standoff function of this guide rod makes it much less likely that the M&P will be pressed out of battery if the muzzle is pressed into someone or something when a shot must be fired.

The guide rod and spring are made from no compromise materials. The guide rod is made from durable 4340 alloy steel which is titanium nitride for corrosion resistance. The spring is made from music wire and then plated to prevent corrosion.

The springs match factory weight so that they do not alter the reliability of the M&P. I own several of these for my Glocks and they have all run like tops.

I should also note that the guide rod has a small transverse hole which can be used to wind the spring effortlessly onto the guide rod if you insert a paper clip. It makes it just as easy to install as a captured unit.

Check out White Sound Defense and buy your own M&P Guide Rod and Springs at CPWSA. We are giving away 2 Guide Rod and Spring sets! Head over to the giveaway page to check it out.

WSD G19 Guide Rod

WSD Guide Rod shown on a Glock 19.

Smith & Wesson M&P Pro Series C.O.R.E. Handguns

Smith & Wesson recently introduced the M&P Pro Series C.O.R.E. handguns through the S&W Performance Shop. The Pro Series C.O.R.E. have the ability to accept a number of different compact red dot optics. This adds S&W to the very short list of manufacturers who have offered their handguns configured to accept an RDS from the factory.

The M&P Pro Series C.O.R.E. handguns allow the user to mount the following RDS: Trijicon RMR, Leupold Delta Point, Jpoint, Doctor, C-More STS, or Insight MRDS. There is some speculation that the mounting system that allows all of these various optics to be mounted is similar to the Atom Mounting System from Unity Tactical. However, it appears that the optic sits a bit higher with the S&W mounting system.

The trend toward mounting RDS on handguns certainly seems to be gaining momentum.

Smith-Wesson.com

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