S&W back on American soil. The Brits that bought it are taking it in the shorts.... good for them! LOL
Smith & Wesson sold to Arizona company
From wire reports
SPRINGFIELD, Mass. — Gun safety equipment maker Saf-T-Hammer said Monday it has acquired well-known gun manufacturer Smith & Wesson from a unit of Britain's Tomkins for $15 million.
"Smith & Wesson, a brand name for 147 years, would be at the top of any list of immediately identifiable corporate logos recognized worldwide," said Bob Scott, president of Saf-T-Hammer and former vice president of Smith & Wesson.
Smith & Wesson has struggled in recent years, with the sharp decline in the American handgun market and the burden of lawsuits brought against the industry by 32 cities and other governments.
In March 2000, Smith & Wesson agreed to install safety locks on all its guns and adopt other safety features and marketing changes. In return, federal, state and local agencies agreed to drop the company from their lawsuits.
Gun rights supporters accused Smith & Wesson of selling out. Some vowed to boycott the company. Smith & Wesson's sales were cut roughly in half, according to Ken Jorgensen, the gunmaker's marketing director.
Under the sale agreement, Saf-T-Hammer will pay $15 million in cash, with $5 million paid upon closing and the balance due in May 2002.
The price is well below the $112 million Tomkins paid for Smith & Wesson, the Financial Times noted on its Web site Sunday.
The privately held Smith & Wesson's total assets were approximately $97 million, which includes two manufacturing facilities, Saf-T-Hammer said in a release.
The main facility is a 660,000-square-foot plant on 160 acres in Springfield, Mass. The other facility is a 36,000-square-foot plant in Houlton, Maine.
Total liabilities are approximately $53 million, which includes a 10-year note payable to Tomkins for $30 million due in May 2011.
The purchase includes all patents, distribution rights, inventory and physical assets, including the corporate headquarters.
"We're excited about the prospects afforded by this unique union of a firearm safety and security device developer and a firearm manufacturer that is synonymous with Americana," said Mitchell Saltz, chairman of Saf-T-Hammer. |
