Wednesday, March 26, 2014

Smith & Wesson Purchases Polymer Supplier

Clearly Smith & Wesson has grown their M&P Brand to impressive levels. So much so that they decided to buy out Tri Two Precision Plastics, Inc., the supplier of polymer for their firearms. Smith & Wesson reports that they will be improving their operating margin by 7%-9%, which could improve further with volume of polymer firearms increasing. 

Smith & Wesson will be giving up $23 Million in the acquisition, which they should make up fairly quickly with the reduction in production cost by cutting out the middle man. The acquisition will also allow them to better manage their supply chain. Who knows what this could mean for future development in polymer firearms or accessories for Smith & Wesson, but it is certainly an interesting move showing how far they have come with the move toward plastic.  The will complete the acquisition in May under the subsidiary now known as Deep River Plastics. One third of Tri Town Precision Plastics, Inc. was outside the purview of Smith & Wesson operations in various industries, which is expected to generate $7-9 million in sales for next year. 

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