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5/25/2001
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Article/Press
Release
Saf-T-Hammer
Corporation Announces Buyout of Smith & Wesson
Firearm Safety & Security Company Buys Legendary Firearm
manufacturer
Saf-T-Hammer
Corporation (OTCBB: SAFH), the Scottsdale, Arizona-based firearm
safety and security company today announced that it has purchased
Smith & Wesson Corp. from Tomkins Corporation, a subsidiary of
UK-based Tomkins PLC (NYSE: TKS).
“Smith
& Wesson, a brand name for 147 years, would be at the top of any
list of immediately identifiable corporate logos recognized
worldwide,” said Bob Scott, president of Saf-T-Hammer™ and
former vice president of Smith & Wesson. “We are proud to
return this storied company to American ownership. We intend to
maximize the value of the name and to fully utilize the
manufacturing, marketing, and worldwide distribution assets of the
company to create appreciation and value for our shareholders. We
also plan to increase the company’s revenues through expanded
branding activities and strategic acquisitions that will compliment
the company’s current product lines. As part of the synergy
between our two companies, we plan to incorporate Saf-T-Hammer™
products into the firearms manufactured by Smith & Wesson.”
The
stock purchase agreement between Saf-T-Hammer™ and Tomkins
encompasses all assets including patents, trademarks, intellectual
property, distribution rights, machine drawings, inventory,
equipment and physical assets of Smith & Wesson, including its
corporate headquarters in Springfield, Massachusetts.
Under
the agreement, Saf-T-Hammer™ will pay $15 million in cash, with $5
million paid upon closing and the balance due in May 2002. As of the
close, Smith & Wesson’s total assets were approximately $97
million, which includes two manufacturing facilities. The main
facility is a 660,000 square foot plant on 160 acres located in
Springfield, Massachusetts. The other facility is a 36,000 square
foot plant in Houlton, Maine. Total liabilities are approximately
$53 million, which includes a 10-year note payable to Tomkins for
$30 million due in May 2011.
“Tomkins’
motivation to sell Smith & Wesson as part of its refocused
worldwide operation, presented an extraordinary opportunity for Saf-T-Hammer™.
It took a tremendous amount of creativity and diligence from both
companies to craft the terms of this transaction. We’re excited
about the prospects afforded by this unique union of a firearm
safety and security device developer and a firearm manufacturer that
is synonymous with Americana,” said Mitchell Saltz, chairman of
Saf-T-Hammer Corp.
About
Saf-T-Hammer™
Saf-T-Hammer
Corporation is a firearm safety company focused on preventing
unauthorized gun use and unintentional firearm accidents. Saf-T-Hammer™
customers include sporting goods distributors, law enforcement
distributors, law enforcement retailers, law enforcement agencies
and gunsmiths.
Saf-T-Hammer™
Products
The
Saf-T-Trigger™ is a mechanical trigger block, which is permanently
installed in the trigger guard of firearms. The block is activated
quickly and simply with a special key, which raises a post into
position behind the trigger, physically blocking the rearward
movement of the trigger. With the Saf-T-Trigger™ activated, the
firearm cannot be fired.
The
Maximum Security Cable™ is “shockproof” and unlike many
similar products currently on the market, will not open when
subjected to jarring and its heavier steel cable is virtually cut
proof. As recently discovered, many cable lock devices for firearms
were less than adequate. Through independent testing, the product
has proven to be up to 10 times stronger than a variety of
conventional cable locks currently available.
The
Versa Vault™ is a handgun vault designed to provide over 40
percent more capacity than any comparable product on the market. It
offers the highest possible degree of electronic and mechanical
security available and features an owner-programmable and
user-friendly lighted keypad with four keys and has over 10,000
available combinations. The vault is designed for both vertical and
horizontal installation, includes a steel mounting plate, and has a
tamper alert, low battery alert, and easy access for electronic
backup and internal lighting. Its small 10” x 14” x 3.5”
external dimensions provides maximum space utilization and allows
the Versa Vault to be installed nearly anywhere. It has a unique
internal holster that presents the firearm to the owner for maximum
speed and accessibility. This holster is also removable, providing
additional storage capacity depending upon the owners needs.
For
more information, visit the company’s Web site at http://www.saf-t-hammer.com
Safe
Harbor Statement
Statements
about the company’s future expectations, including synergies
between the two companies, and all other statements in this release,
other than historical facts, are “forward-looking statements”
within the meaning of section 27A of the Securities Act of 1933,
section 21E of the Securities Act of 1934, as that term is defined
in the Private Securities Reform Act of 1995. The company intends
that such “forward-looking statements” be subject to the safe
harbors created thereby.
Saf-T-Hammer™
and Saf-T-Trigger™ are trademarks of Saf-T-Hammer Corporation.
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