TD Banknorth Finances Smith & Wesson’s Buyout of Thompson/Center Arms
Monday, December 18, 2006
Smith & Wesson Holding Corp. announced it has entered into a definitive agreement to acquire Thompson/Center Arms, a 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.
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 provided by TD Banknorth.
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.
Following the closing of the acquisition in early January 2007, the company will include the results of operations for Thompson/Center Arms from that date forward. The company currently believes that the revenue contribution from Thompson/Center Arms for the period from the closing date to the end of the Company's 2007 full fiscal year, which is April 30, 2007, will be approximately $18.6 million. Therefore, the Company now expects net product sales for the full 2007 fiscal year to be approximately $218.6 million.
Thompson/Center Arms, headquartered in Rochester, NH, manufactures and distributes innovative firearms recognized by hunting enthusiasts for their precision, performance, craftsmanship, and reliability.