Smith & Wesson buying Franklin firm

Gun maker says purchase will add $100 million to 2010 revenue

Email | Print By Geert De Lombaerde

The parent of an iconic gun manufacturer has agreed to buy Universal Safety Response, a Franklin company that makes safety barriers.

Smith & Wesson Holding is paying $26.2 million in cash and up to 9.7 million of its shares (Ticker: SWHC). Based on its share price – which jumped 14 percent after hours Thursday — the deal could be worth as much as $81 million. The Massachusetts-based company said it expects to close its acquisition in July.

USR founder Matthew Gelfand will continue to serve as president of the company while also taking the lead on Smith & Wesson's efforts to develop other security-related businesses.

"These are two well-established and highly regarded brands in their respective industries,” said Gelfand, whose business hit a growth spurt in 2005. “The value proposition to customers on a combined basis is compelling.”

The acquisition is expected to be accretive to Smith & Wesson’s earnings after the current quarter. Fifteen-year-old USR, which employs about 110 people, is on track to add $50 million to Smith & Wesson’s top line between now and next April, the end of its buyer’s fiscal year. By fiscal 2010, USR’s sales and operating profits are expected to grow to $100 million and $15 million, respectively.