Division of Smith & Wesson to purchase Kingsport-based Taylor Brands for $85 million

Cylinders for a .38 caliber revolver are placed on racks after getting polished prior to assembly at the Smith & Wesson factoryh in Springfield, Tuesday, Dec. 19, 2006. Mike Golden, Smith & Wesson's CEO for the past two years, has targeted new technologies and sales to the military and police departments to ensure the company's future. Smith & Wesson's earnings have seen double-digit growth since Golden took over. (AP Photo/Charles Krupa)

KINGSPORT, TN (WJHL) – Smith & Wesson, a leading manufacturer of firearms, announced today its accessories division, Battenfeld Technologies, signed a definitive agreement to purchase all assets of Taylor Brands for $85 million.

(Source: YouTube)
(Source: YouTube)

The deal is expected to close August 2016.

Smith & Wesson also specializes in making accessories for shooting, hunting and rugged outdoor enthusiasts.

Kingsport-based Taylor Brands is a designer and distributor of high-quality knives and specialty tools.

“We are proud that the company my family founded in 1975 has grown to become a leading and highly regarded knife and tool provider,” said Morgan Taylor, President of Taylor Brands. We look forward to achieving our next level of growth and continuing to serve our loyal customers as part of Smith & Wesson and with the benefit of Battenfeld Technologies’ extensive distribution network and product development processes.”

According to a release, Taylor Brands has been a “long-standing licensee for both Smith & Wesson and M&P branded knives and is the owner of a number of highly-regarded, legacy brands including Schrade, Uncle Henry, Old Timer, and Imperial.”

Taylor Brands currently operates in a 160,000 square foot facility.

Smith & Wesson Logo (PRNewsFoto/Smith & Wesson)
Smith & Wesson Logo (PRNewsFoto/Smith & Wesson)

James Debney, President and Chief Executive Officer of Smith & Wesson:

“Taylor Brands provides us with an ideal opportunity to further deliver on an important element of our strategic plan, which is to grow our Accessories Division by expanding into adjacent and complementary markets. Established over 40 years ago, Taylor Brands is a recognized provider of high-quality knives and tools under several well-known brands, especially the Smith & Wesson and M&P brands. Taylor Brands has delivered solid growth as well as gross margins that are aligned with those in our existing Accessories Division. We believe that these newly added product lines will benefit synergistically from the product innovation, distribution network, and efficient sourcing model that have contributed to the success of our Accessories Division under the leadership of its President, Jim Gianladis. Today’s announcement moves us closer to our vision, which is to become the leading provider of quality products for the shooting, hunting, and rugged outdoor enthusiast.”

Jeffrey D. Buchanan, Executive Vice President and Chief Financial Officer of Smith & Wesson:

“As a result of our strong balance sheet, we intend to complete the asset purchase of Taylor Brands with cash on hand and we expect the transaction to close in three to six weeks. Due to its anticipated timing, the transaction is expected to have no impact on Smith & Wesson’s operational and financial results for the fiscal 2017 first quarter ending July 31, 2016. As of the date of acquisition, Taylor Brands’ trailing twelve months revenue was approximately $39.0 million. Without considering any of the significant cost savings that are expected to be realized in our next fiscal year as a result of an acquisition tuck-in of a major licensee, the purchase price represents an estimated multiple of approximately 11x the trailing twelve month EBITDAS. We look forward to providing additional details following the close of the transaction.”

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