Smith & Wesson To Buy Knife Maker Taylor Brands

By Tomi KilgoreMarketsMarketWatch Pulse

Smith & Wesson Holding Corp. said Monday said its accessories division, Battenfeld Technologies Inc., will buy nearly all the assets of knife and tool maker Taylor Brands LLC for $85 million. The gun maker said it would use cash on hand to make the acquisition, which it expects to close in three to six weeks. Taylor Brands' trailing 12-month revenue was about $39 million. Smith & Wesson doesn't expect the deal to have any effect on its results for the fiscal first quarter ending July 31. "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," said Chief Executive James Debney. The stock, which tacked on 1.6% in premarket trade, has shot up 28% year to date through Friday, while the S&P 500 has gained 5.8%.

Copyright © 2016 MarketWatch, Inc.

Continue Reading Below