Go ahead. Make my day! Perhaps the five most used and fearsome words ever spoken when Dirty Harry a.k.a Clint Eastwood coined the phrase in his Dirty Harry series. That of course was when he pointed his .44 Smith & Wesson at a perp and dared him to give him a reason to pull the trigger on the most deadly weapon ever made.
It is being announced that Smith & Wesson has reached an agreement with Thompson/Center Arms out of Rochester, New Hampshire, to purchase the company. The price is estimated at $100 million.
The Boston Herald says that after the announcement yesterday, stock values rose about 9 cents on the Nasdaq.
The purchase increases Smith & Wessonâ€™s net sale expectations for the 2008 fiscal year by $70 million, to about $320 million.
The companyâ€™s shares rose 9 cents to close at $10.36 on the Nasdaq Stock Market, where they have traded in a range of $3.50 to $14.85 over the last 52 weeks.
The deal will allow Smith & Wesson to continue manufacturing guns under the Thompson/Center Arms name.
Under the deal, which is expected to close early next month, Smith & Wesson will purchase Thompson/Centerâ€™s New Hampshire facility and will continue producing rifles under its own name.
Gregg Ritz, Thompson/Centerâ€™s president and CEO who will become president of Smith & Wessonâ€™s hunting line, said the purchase will help the rifle maker expand its product line.
He said Thompson/Centerâ€™s line “fits nicely into the Smith & Wesson portfolio of pistols, revolvers, shotguns and future hunting rifles.”
“There is absolutely no overlap in our product lines,” he said.