Comeback Continues at S&W

It was just a few years ago, it seems, that the future of legendary arms maker Smith & Wesson looked anything but certain. But since early 2004, when James Joseph Minder stepped down as chairman amidst controversy over his past, the news out of Springfield, Mass., has generally been quite encouraging.

In addition to having been the recipient of several industry awards, Smith & Wesson has been awarded numerous contracts from law-enforcement agencies to supply its new polymer-framed M&P pistols and its new M&P 15 Tactical Rifle. And S&Wis set to introduce its new Elite Series shotguns and reintroduce the much-loved 1000 Series shotguns at the 2007 SHOT Show in Orlando, which we eagerly anticipate as this issue goes to press.

But the big news in December 2006 is the announcement that Smith & Wesson Holding Corporation, parent company of Smith & Wesson Corp., has entered an agreement to acquire Thompson/Center Arms, Inc., the 40-year-old, privately held New Hampshire-based manufacturer of premium hunting firearms. The sale price is reported to be $102 million in cash, and the transaction is expected to close in 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 in blackpowder firearms, blackpowder accessories, interchangeable firearm systems, and precision rimfire rifles.

The transaction will combine two leading firearms companies with complementary products, to yield a single-source provider of 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 blackpowder segments, which represent approximately $600 million in domestic sales. In addition to carving out a leadership role in blackpowder 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. 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. Editor Keith Lawrence Technical