Smith & Wesson to Sell Perimeter Security Business
SPRINGFIELD, Mass. — Smith & Wesson Holding Corp. will sell off its perimeter security business to focus on its core firearm business, the company announced.
The company purchased Nashville, Tenn.-based Universal Safety Response (renamed Smith & Wesson Security Solutions) in 2009. The unit provides security solutions in the defense, transportation, petroleum and chemical industries, as well as airports and corporate facilities. However, as government spending declined, Smith & Wesson has seen a large drop in the perimeter security business.
“We believe its strengths could be better maximized as an independent company,” Smith & Wesson President and CEO James Debney said. “Or it could be part of a group of companies, focused entirely on the security solutions market.”
With 125 employees, the security solutions unit brought in 13 percent of Smith & Wesson’s revenues for its last fiscal year, Tennessean.com reports.
Effective Oct. 31, Smith & Wesson will report the unit as a discontinued operation in financial reports. Additionally, the company will omit the division in the financial results of continuing operations. However, it will continue to operate until it is sold, according to the company.
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