Smith & Wesson To Acquire Battenfeld Tech For $130.5 Mln In Cash - Quick Facts

(RTTNews) - Firearms maker Smith & Wesson Holding Corp. (SWHC) announced that it agreed to acquire Battenfeld Technologies Inc., a provider of hunting and shooting accessories, for $130.5 million in cash, subject to certain adjustments. Battenfeld Technologies is being acquired from Clearview Capital, a private equity firm based in Connecticut.

The acquisition is expected to be accretive to Smith & Wesson gross margins, earnings per share, and cash generated in fiscal 2016. It is expected to close in mid- to late December.

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.

Jim Gianladis, who joined Battenfeld in 2007, will serve as the President of Battenfeld Technologies and will report directly to James Debney, Smith & Wesson President and CEO.

Smith & Wesson noted that 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.

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%.