19 December 2006, 07:38
D HumbargerSmith & Wesson is buying Thompson/Center
By ADAM GORLICK, Associated Press
SPRINGFIELD, Mass. — (AP) — Long associated with the likes of Dirty Harry and real-life police officers, Smith & Wesson (SWHC) is now taking aim at a new market: hunters.
In a $100 million deal announced Monday, the Springfield gunmaker said it is buying Thompson/Center Arms, a Rochester, N.H.-based company that specializes in muzzleloaders and rimfire rifles.
The move lets Smith & Wesson target the $1.1 billion long gun market, which is 80% larger than the country's handgun market, CEO Mike Golden said in an interview with Associated Press.
Golden said Smith & Wesson firearms already account for 47% of national revolver sales, and moving the company into the production of long guns was natural.
The purchase increases Smith & Wesson's net sale expectations for fiscal 2008 by $70 million, to $320 million