Posted by Courtney E. Howard
SPRINGFIELD, Mass., 8 Oct. 2011. Smith & Wesson Holding Corp. (NASDAQ Global Select:SWHC) officials plan to divest the company’s perimeter security business and focus on its core firearm business. They are now exploring strategic alternatives toward that end. "Since our acquisition of Nashville-based Universal Safety Response (later renamed Smith & Wesson Security Solutions), the environment for the perimeter security business has deteriorated substantially as a result of significantly reduced government spending,” says James Debney, Smith & Wesson president and chief executive officer.
“Security Solutions has a strong management team and employee base, as well as a number of positive assets and opportunities,” Debney adds. “Its current product portfolio contains a number of highly regarded proprietary technologies, including the GRAB300, GRAB400, and XMB active barriers. In addition, Smith & Wesson Security Solutions has developed a track record of customer support and system expertise across a diverse corporate and government customer base. We believe its strengths could be better maximized as an independent company, or as part of a group of companies, focused entirely on the security solutions market."
"While we explore divestiture options, we will continue to operate Smith & Wesson Security Solutions and offer our high level of support to our customers,” insists Jeffrey D. Buchanan, executive vice president and chief financial officer of Smith & Wesson Holding Corp.
