Smith & Wesson (SWHC) Stock Gains on Taylor Brands Acquisition
NEW YORK (TheStreet) -- Shares of Smith & Wesson (SWHC) are up 1.76% to $28.85 in early-morning trading on Monday after its accessories unit, Battenfield Technologies, agreed to acquire knife maker Taylor Brands for $85 million in cash.
The acquisition will help the firearms manufacturer grow its accessories division by "expanding into adjacent and complementary markets," Smith & Wesson CEO James Debney said in a statement.
The transaction is expected to close within three to six weeks and won't impact the 2017 first quarter ending July 31.
For the year ended April 30, Smith & Wesson reported accessories division sales of $65.3 million vs. firearm unit sales of $657.6 million, according to the Wall Street Journal.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of A-.
Smith & Wesson's strengths include its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income.
You can view the full analysis from the report here: SWHC
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.