Smith & Wesson (SWHC), one of my favorite gun stocks, reports earnings today after the close. I expect the news to be good.
SWHC reported on Friday that it will acquire Universal Safety Response, Inc. (USR), a full-service security systems solutions provider, for up to 9.7 million shares of common stock and up to $26.2 million in cash. The deal gives Smith & Wesson a stake in the perimeter security market and allows the company to expand its revenue base into commercial, non-firearms categories.
Of the acquisition, William F. Spengler, EVP and Chief Financial Officer for Smith & Wesson, said, “The acquisition of USR is expected to close in late July 2009 and therefore it does not impact our financial results for fiscal 2009, which concluded on April 30, 2009.