American Outdoor Brands (AOB)—formerly Smith & Wesson Holding—is acquiring suppressor manufacturer Gemini Technologies (Gemtech). Last week’s announcement came on the heels of AOB issuing its fourth-quarter-2017 report, which showed net sales up $8.1 million for the three-month reporting period from February to April, and comments from its CEO that the firm was already increasing market share significantly.
“Gemtech is widely recognized for producing some of the finest rifle and pistol suppressors in the market,” James Debney, President and CEO of AOB, said. “Gemtech’s strong product development capabilities, combined with our experience in brand management and our manufacturing expertise, will help us to efficiently develop both firearms and suppressors, minimizing our time to market for both product categories.”
AOB posted a strong performance during fiscal year 2017, according to the report. Total sales were $903.2 million, compared to $722.9 million the prior year and gross margin was 41.5 percent. “Sales of our market-leading M&P Shield pistol designed for concealed carry remained strong,” Debney said. “In the fourth quarter alone, we sold over 195,000 Shield units, reflecting tremendous consumer adoption rates and extraordinary market share gains.”
The sale of Gemtech is expected to be completed this summer, whereupon it will join the corporation’s firearm-related group that includes Smith & Wesson, M&P, Thompson/Center Arms, Crimson Trace and others. Ron Martinez, President of Gemtech, will continue in his leadership role as general manager, heading the company’s team in Eagle, ID.
AOB will use cash on hand to complete the transaction. “We ended the year with cash and cash equivalents totaling $61.5 million…,” according to Debney’s statement in the financial report. We can also expect more moves from the company this year. “In fiscal 2018, we expect to continue employing the strength of our balance sheet, including the unused portion of our revolving line of credit, which is expandable up to $500 million, to fuel additional growth opportunities, both organic and inorganic,” he said.
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