Breaking: Smith & Wesson Acquires Battenfeld

Battenfeld

Smith & Wesson has just announced the purchase of Battenfeld Technologies for $130.5 million in cash. You may have not heard of Battenfeld Technologies, but there is a good chance you own products they make. Their brands include Caldwell Shooting Supplies (shooting accessories, targets, ear/eye protection), Wheeler Engineering (gunsmithing supplies and tools), Tipton Gun Cleaning Supplies (gun cleaning products), Lockdown Vault Accessories (gun safe accessories), Golden Rod (gun safe moisture control systems), Frankford Arsenal (reloading tools and supplies) and Bog Pod (gun tri-pod systems).

The products manufactured by Battenfeld are almost all high-margin low-cost accessories, the type of products low-margin gun manufacturer eye with envy. It also represents a diversification for S&W making them less immune to the highs and lows of the very volatile gun market.

The full press release is below …

The agreement provides for Smith & Wesson to acquire Battenfeld Technologies for $130.5 million in cash, subject to certain adjustments. Based in a 145,000 square foot facility in Columbia, Missouri, Battenfeld Technologies develops and sells shooting, reloading, gunsmithing, and gun cleaning supplies under several popular, premium brands, including Caldwell® Shooting Supplies, Wheeler® Engineering, Tipton® Gun Cleaning Supplies, and Lockdown® Vault Accessories.

Battenfeld Technologies maintains a product development team that has an established track record of launching high-quality, innovative products across its brand portfolio. As a result, its products maintain a prominent position with several independent retailers as well as large sporting goods retailers, including Cabela’s, Bass Pro Shops, Dick’s Sporting Goods, and Gander Mountain. Battenfeld products are also available at internet retailers, including amazon.com and MidwayUSA.

Battenfeld Technologies was founded 22 years ago and since 2006 has generated a largely organic compound annual revenue growth rate in excess of 18%, fueled by sales of newly developed products. In addition to this strong organic growth, the company has also expanded by successfully acquiring small, specialty, hunting-related accessories companies, such as BOG-POD® and GoldenRod®.

James Debney, Smith & Wesson President and CEO, said, “Battenfeld Technologies provides us with a unique opportunity to acquire a thriving company that fits perfectly within our core firearm business. 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. Most of the growth of Battenfeld Technologies has occurred organically, which is a testament to the robust product development capability that Jim Gianladis, the Chief Executive Officer of Battenfeld Technologies, and his team have established. That capability, combined with Battenfeld Technologies’ sophisticated sourcing and distribution infrastructure, should provide a solid framework for organic and inorganic growth as the new accessories division of Smith & Wesson. Our intention is that eventually all existing Smith & Wesson®, M&P®, and Thompson/Center Arms™ accessories will be housed within this new division. As we continue to expand further into the hunting category, we expect that our accessories businesses will benefit from Battenfeld Technologies’ sourcing and distribution efficiencies and established expertise in new product development.”

Jim Gianladis, who joined Battenfeld in 2007, will serve as the President of Battenfeld Technologies and will report directly to Debney. The Battenfeld Technologies management team and workforce, as well as its base of operations, will continue in Columbia, Missouri. Gianladis said, “We are very excited to join the team at Smith & Wesson. At Battenfeld Technologies, we have built a robust hunting and accessories business based upon our premium product quality and innovation. We believe that makes us a perfect fit for Smith & Wesson, a legendary company with an iconic brand, world-class products, and broad markets that span consumer, law enforcement, and international channels. Together, we have the opportunity to further expand our business and achieve a new level of success.”

The purchase price for Battenfeld Technologies will be paid using existing cash balances and cash from a $100 million draw on Smith & Wesson’s existing line of credit, which has been expanded to $125 million as a result of the company’s partial exercise of the accordion feature on that line of credit. Battenfeld Technologies is being acquired from Clearview Capital, a private equity firm based in Connecticut.

Due to its anticipated timing, the transaction is expected to have nominal impact on Smith & Wesson’s operational and financial results for the fiscal 2015 third quarter ending January 31, 2015. Without considering any revenue synergies, Smith & Wesson estimates that the acquisition will provide incremental revenue in its 2016 fiscal year in excess of $55 million and EBITDA margins on the incremental revenue in excess of 27%. The acquisition is also expected to be accretive to Smith & Wesson gross margins, earnings per share, and cash generated in fiscal 2016. Smith & Wesson will provide additional details and an update on the progress of the transaction during its fiscal second quarter earnings conference call, scheduled for December 4, 2014. Details of the conference call follow.

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 Loeb and Loeb, LLP is acting as legal advisor to Battenfeld Technologies, Inc. and its owner.



Steve Johnson

Founder and Dictator-In-Chief of TFB. A passionate gun owner, a shooting enthusiast and totally tacti-uncool. Favorite first date location: any gun range. Steve can be contacted here.


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  • Guest

    Good for them. We’ll see tomorrow how they stacked up in 2012 against other gun manufacturers in terms of number of units made!

  • Nicks87

    Good job S&W. Now just remove those ridiculous frame locks from your revolvers and I will start buying your products again.

  • JumpIf NotZero

    Heh, I had not heard of Battenfeld, but I see those logos on the “high margin low cost” group there and I don’t see a single company I would buy anything from.

    So of course they are worth 100 million.

    Investing in cheap gun store filler mostly made in China, good luck S&W.

    • Nicks87

      You might not buy that crap but for most small gun shops thats their bread and butter. Most people will go to a shop “just to look at guns” and end up walking out with cleaning/reloading supplies in order to justify the visit.

    • Laserbait

      Yeah – those companies are really not complimenting the S&W brand.

  • Yojimbo556

    Yup, i really wanted to love an M&P its just so comfortable in the hand, but that trigger is just so terrible.

  • KoyoteTan

    Typo: I think you meant “more” immune. Feel free to delete this comment.