Smith & Wesson Holding Corporation completed its acquisition of Universal Safety Response, Inc. (USR), a privately held, full-service security systems solutions provider.
As noted in a press release of June 18, 2009, the acquisition provides Smith & Wesson entry into the rapidly growing perimeter security market, a move aligned with the company's growth and diversification strategy, and one that expands its revenue base into commercial, non-firearms categories. USR will be operated as a wholly owned subsidiary of Smith & Wesson.
USR is a full-service, uniquely positioned, fast-growing provider of integrated perimeter security solutions. USR is the original creator of the patented GRAB(R) vehicle safety barrier, which represents the fastest growing barrier technology in the world and is the only active barrier product that meets the Federal Highway Administration's TL-2 safety test, the Department of State's K12 L3 security test, and the Department of Defense ASTM M50 Shallow Mount security test. USR has leveraged the success of its GRAB(R) barrier systems to become a turnkey perimeter security provider, with a large portfolio of products and services. USR serves a variety of clients in the defense, transportation and petro-chemical industries, as well as airports, Fortune 500 companies and national laboratories.
Michael F. Golden, President & CEO of Smith & Wesson Holding Corporation, said, “I am pleased to announce that Universal Safety Response has now joined the Smith & Wesson family of companies. USR is a highly respected brand name in the industry, and its state-of-the-art, turnkey security systems embody innovation, expertise, and the highest levels of quality. USR is a tremendous compliment to our own Smith & Wesson brand and products, expanding our reach beyond firearms, and into the broader market for products and services that exemplify safety, security and protection. We look forward to building and expanding our businesses across the globe, and we want to thank all of our employees, at Smith & Wesson and at USR, for their continued dedication and our resulting success.”
In the current year, which ends April 30, 2010, the acquisition will be immediately accretive excluding the purchase accounting impact on a per share basis and approximately breakeven per share on a US GAAP basis. The acquisition is expected to be accretive to EPS on a U.S. GAAP basis in future periods.
Avondale Partners LLC served as the financial advisor to USR in the acquisition.
