Courtesy of Benzinga.
Smith & Wesson Holding Corp (NASDAQ: SWHC) announced on Wednesday it will acquire Battenfeld Technologies, a hunting and shooting accessories provider for $130 million.
Battenfeld Technologies develops and sells shooting, reloading, gunsmithing and gun cleaning supplies under several known brands including Caldwell Shooting Supplies. The company has a presence in national retailers including Dicks Sporting Goods, Bass Pro Shops, Cabela's and Gander Mountain. The company also sells its products online through Internet retailers, including Amazon.com.
Smith & Wesson expects the deal to be accretive to its gross margins, earnings per share and cash generated in fiscal 2016. The company will finance the acquisition through existing cash balances and cash from a $100 million line of credit, which has been expanded to $125 million.
The company expects the deal to close in mid to late December.
“Battenfeld Technologies provides us with a unique opportunity to acquire a thriving company that fits perfectly within our core firearm business,” James Debney, Smith & Wesson President and CEO said in a press release. "It also allows us to move more strongly into the hunting vertical as well as establish a strong platform for growth in our existing firearm accessories business, which has been a small but highly profitable part of our company.”
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