5/14/2001 Smith & Wesson 5/14/2001 Smith & Wesson is now AMERICAN again! It's about time we removed England again from the firearms business - they have banned guns and have seen a dramatic rise in rape, other violent crime AND gun deaths!
MEDIA & INVESTOR RELATIONS: Shannon T. Squyres, President Market Pathways 949.955.1860 FOR IMMEDIATE RELEASE
SAF-T-HAMMER CORPORATION ANNOUNCES BUYOUT OF SMITH & WESSON -Firearm Safety and Security Company Buys Legendary Firearm Manufacturer- SCOTTSDALE, Ariz., May 14, 2001 - Saf-T-Hammer Corporation (OTC BB: 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(tm) 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(tm) 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(tm) 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.