Leading gun manufacturer Smith & Wesson has announced that it has signed a definitive agreement to acquire Crimson Trace, the industry leader in laser sighting systems, for $95 million utilizing cash on hand.
According to the announcement, Crimson Trace will serve as Smith & Wesson’s new Electro-Optics division. Lane Tobiassen, President and CEO of Crimson Trace, has been named President of the aforementioned division and is set to report directly to Smith & Wesson President and CEO James Debney. Crimson Trace will continue to operate out of its 50,000 square foot facility in Wilsonville, Oregon.
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“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,” Debney said.
“As the new Electro-Optics Division of Smith & Wesson, we believe that our capabilities, combined with inorganic opportunities to acquire related technologies, will expand the reach of our existing market footprint. This makes us a great fit for Smith & Wesson, a legendary company with an iconic brand, world-class products, and markets that include consumer, law enforcement, and international channels. We look forward to offering consumers exceptional performance from two of the industry’s most trusted names,” Tobiassen added.
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Crimson Trace boasts a 10-year compound annual revenue growth rate in excess of 10%. Over the past 12 months, the 22-year-old company has pulled in $44.0 million in revenue.
Smith & Wesson Executive Vice President and CFO Jeffrey D. Buchanan says he expects the transaction to close in three to six weeks.
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