Saf-T-Hammer Corporation Announces Buyout of Smith & Wesson
Firearm Safety & Security Company Buys Legendary Firearm manufacturer
Saf-T-Hammer Corporation (OTCBB: SAFH), the Scottsdale, Arizona-based firearm safety and security company today announced that it has purchased Smith & Wesson Corp. from Tomkins Corporation, a subsidiary of UK-based Tomkins PLC (NYSE: TKS).
"Smith & Wesson, a brand name for 147 years, would be at the top of any list of immediately identifiable corporate logos recognized worldwide," said Bob Scott, president of Saf-T-Hammer™ and former vice president of Smith & Wesson. "We are proud to return this storied company to American ownership. We intend to maximize the value of the name and to fully utilize the manufacturing, marketing, and worldwide distribution assets of the company to create appreciation and value for our shareholders. We also plan to increase the company's revenues through expanded branding activities and strategic acquisitions that will compliment the company's current product lines. As part of the synergy between our two companies, we plan to incorporate Saf-T-Hammer™ products into the firearms manufactured by Smith & Wesson."
The stock purchase agreement between Saf-T-Hammer™ and Tomkins encompasses all assets including patents, trademarks, intellectual property, distribution rights, machine drawings, inventory, equipment and physical assets of Smith & Wesson, including its corporate headquarters in Springfield, Massachusetts.
Under the agreement, Saf-T-Hammer™ will pay $15 million in cash, with $5 million paid upon closing and the balance due in May 2002. As of the close, Smith & Wesson's total assets were approximately $97 million, which includes two manufacturing facilities. The main facility is a 660,000 square foot plant on 160 acres located in Springfield, Massachusetts. The other facility is a 36,000 square foot plant in Houlton, Maine. Total liabilities are approximately $53 million, which includes a 10-year note payable to Tomkins for $30 million due in May 2011.
"Tomkins' motivation to sell Smith & Wesson as part of its refocused worldwide operation, presented an extraordinary opportunity for Saf-T-Hammer™. It took a tremendous amount of creativity and diligence from both companies to craft the terms of this transaction. We're excited about the prospects afforded by this unique union of a firearm safety and security device developer and a firearm manufacturer that is synonymous with Americana," said Mitchell Saltz, chairman of Saf-T-Hammer Corp.