Crosman acquired laser sight company LaserMax a couple weeks after the airgun and optics manufacturer was acquired by a Connecticut capital investment company.
The chain of events kicked off July 5 when Compass Diversified Holdings completed the purchase of Crosman for $152 million using both cash and credit, according to public filings of the transaction. Then, Crosman acquired LaserMax on July 20 for an unspecified sum using Compass’s revolving credit line.
Compass chief executive officer, Alan Offenberg, explained “this premium laser sight brand” would allow Crosman to reach a wider customer base in the outdoor recreation market.
“The addition of LaserMax’s Commercial business supports Crosman’s strategic initiative of expanding into attractive adjacent markets and realizing cross-selling opportunities with current big box retail and international customers,” Offenberg said in a statement.
According to the statement to investors, LaserMax has developed “significant intellectual property in laser technology, resulting in a comprehensive IP portfolio.” A search of the company’s website shows products for industrial use and firearms.
Public filings show LaserMax reported $8 million in net revenue for the last fiscal year, which ended for the company June 30. For its part, the New York-based Crosman reported a net revenue of $118 million for its last fiscal year, which ended April 30.
Compass is scheduled to release second quarter earnings next month and had closed out its first with $290 million in sales. For fiscal year 2016, the company reported $978.3 million in sales with a profit of $54.7 million.
Other outdoor or recreational companies falling under the Compass umbrella include 5.11 Tactical, Liberty Safes, and Sterno Products, the company’s website shows. Others include technology and clean energy companies.
One of LaserMax’s main competitors, Crimson Trace, was acquired last year by American Outdoor Brands Corporation, formerly Smith & Wesson Holding Corp., for $95 million. As part of a longterm growth strategy, AOB categorized Crimson Trace as the corporation’s electro-optics department. Despite the designation, company officials say it’s business as usual.
When Compass acquired Crosman earlier this month, a spokesman from the companies assured the community of East Bloomfield that the acquisition would not negatively impact local jobs.
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