Author Topic: S&W Aquires Thompson/Center for $102 million  (Read 1084 times)

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Offline SourMash

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S&W Aquires Thompson/Center for $102 million
« on: December 18, 2006, 06:47:47 AM »
Smith & Wesson Acquires Thompson/Center Arms, Inc.

New Hampshire based company purchased for $102 million cash

By Press Release


Springfield, Massachusetts, December 18, 2006 -- Smith & Wesson Holding Corporation (Nasdaq: SWHC), parent company of Smith & Wesson Corp., the legendary 154-year old company in the global business of safety, security, protection and sport, today announced that it has entered into a definitive agreement to acquire Thompson/Center Arms, Inc., a 40-year old, privately held, New Hampshire-based designer, manufacturer and marketer of premium hunting firearms, for $102 million in cash. The transaction is expected to close in the beginning of January 2007.



Thompson/Center Arms, headquartered in Rochester, New Hampshire, manufactures and distributes innovative firearms recognized by hunting enthusiasts for their precision, performance, craftsmanship, and reliability. Thompson/Center Arms occupies a leadership position within each of its core product categories of black powder firearms (or "muzzleloaders"), black powder accessories, and interchangeable firearm systems, as well as a presence in precision rimfire rifles. The transaction will combine two leading firearms companies with complementary products, to yield a single provider of high- quality pistol, revolver, shotgun and rifle products.



Michael F. Golden, President and CEO of Smith & Wesson Holding Corporation, said, "The acquisition of Thompson/Center Arms is an important step in our diversification strategy. Thompson/Center Arms has consistently delivered both profits and strong gross margins while building its position in the hunting rifle market. This move will expand our presence in the $1.1 billion long gun market by providing immediate entry into the hunting rifle and black powder segments, which represents approximately $600 million in domestic sales. In addition to carving out a leadership role in black powder and single shot hunting rifles, Thompson/Center Arms has developed tremendous expertise in manufacturing long-gun barrels, a competency that will be important to Smith & Wesson as we expand our capabilities even further into the long gun market."

The purchase price for Thompson/Center Arms includes the company's Rochester, New Hampshire facility, which produces all of the company's products and is situated geographically between Smith & Wesson's manufacturing operations in Springfield, Massachusetts and Houlton, Maine. The transaction will be financed with the proceeds from the sale of convertible senior notes and an acquisition line of credit.



In conjunction with the acquisition, Gregg Ritz, President and CEO of Thompson/Center Arms, will be named President of Smith & Wesson - Hunting. He will continue to lead the Thompson/Center Arms operation and will head Smith & Wesson's efforts to develop its hunting business. Ritz said, "In addition to bringing together two well-established and highly respected brands in the firearms industry, this acquisition increases opportunities for both Smith & Wesson and Thompson/Center Arms. Smith & Wesson's ability to provide capital for growth and expertise in lean manufacturing processes will provide critical support for our new product pipeline and our need for increased capacity based on strong customer demand. In turn, Thompson/Center Arms' array of barrel manufacturing expertise, hunting rifle products, and accessories fits nicely into the Smith & Wesson portfolio of pistols, revolvers, shotguns and future hunting rifles. There is absolutely no overlap in our product lines, while there is tremendous similarity in our dealer and distribution channels and our marketing vehicles."

http://www.shootingtimes.com/swtc_121806/

Offline Redhawk1

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Re: S&W Aquires Thompson/Center for $102 million
« Reply #1 on: December 20, 2006, 01:53:57 AM »
How many more places are we going to see this????
If  you're going to make a hole, make it a big one.
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Offline reelhook

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Re: S&W Aquires Thompson/Center for $102 million
« Reply #2 on: December 30, 2006, 04:45:47 AM »
After over 30 years in the gun business as a sales manager and also a manufactures rep, I hate to see the gun business revert to the large corporations. All of the advances in the quality of products have come from individuals with a passion and desire to improve the products and not just to make money. Money is impoetant to stay in busines but it is not all. Not a Ruger left at Ruger and you can say that about almost all gun related businesses. How mayn individual owners are still at it?-Justim Moon @ Kahr-family still at Marlin-even Dan Wesson sold out. It is a sad state and now, TC.

Offline bob allen

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Re: S&W Aquires Thompson/Center for $102 million
« Reply #3 on: January 26, 2007, 03:03:59 PM »
I think it's just great.Ever since S&W became an American company It has jumped ahead.
Having owned both makers arms ,as long as the quality is there I will support them.There are not too many left in this country.When I heard of the buyout I ordered 500 more shares in S&W...About the price of a nice shotgun........

Offline marlinman93

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Re: S&W Aquires Thompson/Center for $102 million
« Reply #4 on: January 27, 2007, 11:59:03 AM »
 Well it's been a very long time since the original families owned any of the major gun makers, so I don't see the problem here. I'm tickled that the operation was purchased by an American owned company. It could have easily gone overseas! Marlin has been run by the same family (Kenna) since 1923, but they sure aren't related to John Marlin or his sons!
 From the statement S&W made, it almost sounded like they purchased TC to help them with expertise they wanted in the making of rifle barrels. First thought that came to my mind was they planned to expand into the rifle making business too.
 Guess we'll wait and see how this all comes out later.
Ballard, the great American Rifles!

Offline K.K

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Re: S&W Aquires Thompson/Center for $102 million
« Reply #5 on: January 30, 2007, 02:10:26 PM »
I'm not sure that I like the merger, or big business, but there is great potential. I just hope that they remain true to the T/C lines of products like the G2, Encore, etc.