Smith & Wesson is set to establish an Electro-Optics Division by acquiring the well-known Crimson Trace Corporation, a world-class manufacturer of laser sighting systems
In its strive to achieve a level of global dominance in the field of firearms and related accessories for hunting, sport shooting, personal defense, service and tactical purposes, Smith & Wesson – already one of America's most respected firearms manufacturers – is set to develop an even broader offer of dedicated accessories on its own by establishing an Electro-Optics Division.
And it's doing so by acquiring the Crimson Trace Corporation, an industry leader in laser sighting systems and tactical lighting for firearms. Smith & Wesson and Crimson Trace go way back: the Company, headquartered in Wilsonville (Oregon), has long been a key supplier of laser sighting systems for Smith & Wesson. CTC lasers are available as aftermarket or factory-issued accessories for several Smith & Wesson pistols, revolvers, and long guns.
A multi-million dollar deal
The deal, for which Smith & Wesson paid 95 million dollars cash, is according to Reuters expected to have no impact on Smith & Wesson's operational and financial results for the first quarter of the fiscal year 2017, which ends on 7/31/2016. On the contrary, Reuters states that the acquisition would be accretive to Smith & Wesson's earnings per share in the same fiscal year.
Jobs will not be endangered by the acquisition, and know-how will be safeguarded: the Crimson Trace management team and workforce, as well as its base of operations, will remain in Wilsonville, Oregon after the acquisition. Lane Tobiassen, who joined the Company in 2005 and currently serves as the Chief Executive Officer and President at Crimson Trace Corporation, will serve as President of the new Electro-Optics Division of Smith & Wesson.
«Crimson Trace provides us with an exceptional opportunity to acquire a thriving company that is completely aligned with our strategy to become a leader in the market for shooting, hunting, and rugged outdoor enthusiasts», said James Debney, Smith & Wesson President and Chief Executive Officer.
«As the undisputed leader in the market for laser sighting products, Crimson Trace serves as an ideal platform for our new Electro-Optics Division. Firearms purchasers frequently buy electro-optic accessories to enhance the capabilities and performance of their firearms. The growth that Crimson Trace has delivered is a testament to the high product quality and the robust product development capability that Lane Tobiassen, President and Chief Executive Officer of Crimson Trace, and his team have established. That capability, combined with Crimson Trace's leadership position in the market for laser sights, provides a solid framework for organic and inorganic growth».
Establishing an Electro-Optics division is something that other major brands in the industry have done in the recent past. Notable examples include longtime competitor SIG Sauer, as well as the Beretta Holding – which now owns and operates electro-optics and accessory manufacturers such as Burris, Steiner, and Laser Devices.