Its a Done Deal – A Cool $10 Million for Smith & Wesson to Close Gemtech

Smith & Wesson continues to press on all fronts, expanding on all fronts under its new publicly traded name – American Outdoor Brands Corporation. Seeking to expand from its firearms roots, Smith & Wesson has been pushing into its namesake – the outdoors. Various companies owned by AOBC focus on true recreational products, not just boomsticks.

But, Smith & Wesson itself does stay closer to firearms. Announced earlier on July 15th, Smith & Wesson planned to acquire Gemini Technologies (also known as “Gemtech”). On August 9th, the same was announced as formally completed with a few details on the transaction, including the purchase price of $10 million.

Interestingly, the press release indicated that not all of the assets were purchased. Press Releases are typically scrutinized highly, especially with publicly traded companies. Instead, AOBC “…completed the purchase of substantially all of the assets…” I assume this means some technologies and IP will remain the property of the former owner or other members of the staff. Or, it is common for specific technologies to be bought out privately during the sale by various staff members, etc.

Additionally, there will be “earn-out payments” which are commonly used to keep owners and/or key staff with the company with an incentive for the company to continue performing. Details of these private agreements are not usually public, but can be very lucrative – sometimes more than the initial cash transaction.

The full press release can be found here. 



Frank.K

TFB’s FNG. Completely irreverent of all things marketing but a passionate lover of new ideas and old ones well executed. Enjoys musing on all things firearms, shooting 3-gun, and attempting to be both tacticool AND tactical.


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  • Drew Coleman

    The title to the article made me think they were shutting them down. Did you mean to word it like that (e.g. clickbait…) or did you miss a word?

    • RogUinta

      4 SIG P320 articles a day and you have to ask that question?

      Clickbait.

      • I mean why are they even posting this, don’t they have another article on the P320 drop tests to post?

        • Mr. Katt

          Well . . . now that you mentioned it, Morrow, Georgia, P.D. (south side of metro Atlanta) pulled all their SIG P320s out of service this morning and re-issued Glock 17 and Glock 19 pistols. At least the Glocks don’t go off when you whack ’em with a hammer.

          • I am sure that they will get right on post that story. There are still some of the horse’s bones left to beat into dust.

    • Tom Currie

      Of course it was clickbait — how else would TFB get anyone to read their junk lately?

      • Editors, take note

        Are you telling me that having every article starting with “NEW” or “BREAKING” doesn’t actually increase page views?!?!

  • Daniel

    Sig had a non recall recall?!?!? When was this?

    • ostiariusalpha

      Tuesday was the initial announcement. The details are supposedly going to be laid out on Monday, the 14th.

  • rychastings

    eww

  • Ten million is it? Seems kinda low, I thought they were a bigger company than that.

    • datimes

      Maybe the purchase price does not include debt the purchaser was required to assume.

    • Harry’s Holsters

      Not uncommon for the former owners to be required to stay on for X amount of time and they receive most of their payout in large salaries for bonuses based off performance.

      • “based off performance”

        hahahaha that literally never happens, executive pay is more of a rigged game than a carnival ring toss

        • Harry’s Holsters

          Happens a lot in the tech industry in my area. A lot of investors involved who usually get their pay off at the sale and then the founder/founders make most of their payoff from extremely high salaries and a performance bonus. Often time attorneys get involved at the end though which isn’t good for the founders.

  • Audie Bakerson

    Perhaps it’s some physical assets they left behind?

    • Tony

      Maybe obsolete stagnate inventory.

  • Sledgecrowbar

    Great, just what we need. Smith & Wessington.

  • JASON B

    Frankly I was quite surprised that Gemtech, one of the longer standing suppressor manufacturers, only sold for $10 million. I would have expected it to sell for several times that. There must be some significant back door deal on this one.

    • CompletelyOutsane

      In the restrictive market for suppressors right now I think the price is fair. If/when the ridiculous restrictions are lifted it’ll likely be a screaming bargain price.

  • Big G

    Maybe someone at gemtech can school S&W on how to take those ridicuous Hillary hole key locks off the side of there revolvers..

    • Insurance Panda is a SCAM

      “Hillary hole”….

      Love it!

  • Kjk

    SW stock hasn’t been doing great the past 6 months or so. All these acquisitions aren’t helping the stock price.

  • Insurance Panda is a SCAM

    Diversification….

    Good defensive move by S&W.

    Along with “smokescreening” the corporate name, S&W is trying to hide behind a semi-nondescript corporate name of “American Outdoor Brands Corporation”.

    Obviously, the corporate management sees the future writings on the wall for gun sales, realizing that the next time Democrats take the White House, the 2nd Amendment is on the line.

    Might as well start moving now to spread the risk – soon, S&W will be making kayaks, tents, Cub Scout cooking and basket weaving kits.