Smith & Wesson Holding Corp. stated that its Outdoor Products & Accessories segment, through a subsidiary of Battenfeld Technologies Inc., will acquire the business of Ultimate Survival Technologies Inc. (UST Brands), a provider of survival and camping equipment, in an asset acquisition for $32.3 million in cash.
In addition, up to $2 million will be due over a period of two years following the closing, contingent upon the financial performance of the acquired business.
UST Brands’ line of personal safety and survival tools includes LED lights, patented all-weather fire starters, unbreakable signal mirrors, premium outdoor cutting tools, first aid kits, signal whistles, survival kits, camp kitchen products and more. UST Brands’ products are sold through a variety of outdoor, sporting goods and large retailers, as well as through online merchandisers. Based in Jacksonville, FL, UST Brands operates from a 100,625 square foot facility.
James Debney, president and chief executive officer of Smith & Wesson, said, “We are very excited to announce the acquisition of UST Brands. With its complete offering of survival gear, UST Brands is our first acquisition that is entirely focused on the outdoor market, which is a key part of our vision to become the leading provider of quality products for the shooting, hunting and rugged outdoor enthusiast. By expanding its product portfolio and retail presence, UST Brands delivered impressive compound annual revenue growth of 49 percent from 2012 through 2015. We believe that UST Brands’ broad distribution network, which includes strategic retailers, online retailers, and distributors, will create incremental opportunities for our existing accessories products. Moreover, we believe that the UST Brands product portfolio will benefit synergistically from the product innovation, distribution network, and efficient sourcing model that have contributed to the success of our Accessories Division under the leadership of its President, Jim Gianladis.”
Jeffrey D. Buchanan, executive vice president and chief financial officer of Smith & Wesson, stated, “We intend to complete the acquisition of UST Brands with a combination of cash on hand and borrowings under our revolving credit facility, and we expect the transaction to close later this month during our fiscal third quarter. As of the date of signing, UST Brands’ trailing twelve months revenue was approximately $24 million. Without considering any of the operating synergies, which are expected to occur in calendar 2018 and 2019, the purchase price represents an estimated multiple of approximately 11 times the trailing 12 month EBITDAS.”
Andrew Kaufmann, president of UST Brands, said, “As a family owned business for many years, we are very proud of the strong growth, profitability and outstanding reputation we have built in the market for survival and camping equipment. We are excited about the many organic and inorganic opportunities that UST Brands will be able to pursue in this segment of the outdoor market with the strong support and financial backing of Smith & Wesson.”
Smith & Wesson reports two segments: Firearms and Outdoor Products & Accessories. Firearms manufactures handgun and long gun products sold under the Smith & Wesson, M&P and Thompson/Center Arms brands as well as providing forging, machining and precision plastic injection molding services. Outdoor Products & Accessories provides shooting, hunting and outdoor accessories, including reloading, gunsmithing and gun cleaning supplies, tree saws, vault accessories, knives, laser sighting systems and tactical lighting products. Brands in Outdoor Products & Accessories include Smith & Wesson, M&P, Thompson/Center Arms, Crimson Trace, Caldwell Shooting Supplies, Wheeler Engineering, Tipton Gun Cleaning Supplies, Frankford Arsenal Reloading Tools, Lockdown Vault Accessories, Hooyman Premium Tree Saws, Bog Pod and Golden Rod Moisture Control as well as knives and specialty tools under Schrade, Old Timer, Uncle Henry and Imperial .
