- Smith & Wesson Holding Corporation (SWHC) announces that its Battenfeld Technologies division acquired knife maker Taylor Brands for $85.0M .
- The company plans to use cash on hand to make the purchase.
- Taylor Brands has been a long-standing licensee for both Smith & Wesson and M&P branded knives and is the direct owner of a number of highly-regarded, legacy brands including Schrade, Uncle Henry, Old Timer, and Imperial.
- Smith & Wesson CEO James Debney on the deal: "Taylor Brands has delivered solid growth as well as gross margins that are aligned with those in our existing Accessories Division. We believe that these newly added product lines will benefit synergistically from the product innovation, distribution network, and efficient sourcing model that have contributed to the success of our Accessories Division."
- The company expects the transaction to close in three to six weeks. Due to its anticipated timing, the transaction is expected to have no impact on Smith & Wesson's operational and financial results for the FY17 Q1 ending July 31, 2016.
- The purchase price for Taylor Brands represents an estimated multiple of approximately 11x the trailing twelve month EBITDA.
- SWHC +1.411% premarket to $28.75
- Source: Press Release