Scottsdale-based Saf-T-Hammer buys Smith & Wesson from British owner
Associated Press
May 14, 2001 09:45:00
SPRINGFIELD, Mass. - Smith & Wesson Corp., a manufacturer of handguns since
1852, has been sold by its British owner to Saf-T-Hammer Corp., a
Scottsdale-based firearm safety and security device developer.
Saf-T-Hammer announced the agreement today with Tomkins PLC, which has owned
Springfield-based Smith & Wesson since 1987.
"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.
As of the close, 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. 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.
---
On the Net:
Saf-T-Hammer site: http://www.saf-thammer.com
------------------
http://www.predatormasters.com
Associated Press
May 14, 2001 09:45:00
SPRINGFIELD, Mass. - Smith & Wesson Corp., a manufacturer of handguns since
1852, has been sold by its British owner to Saf-T-Hammer Corp., a
Scottsdale-based firearm safety and security device developer.
Saf-T-Hammer announced the agreement today with Tomkins PLC, which has owned
Springfield-based Smith & Wesson since 1987.
"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.
As of the close, 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. 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.
---
On the Net:
Saf-T-Hammer site: http://www.saf-thammer.com
------------------
http://www.predatormasters.com
