by Joseph P. Tartaro
Executive Editor
Mergers, acquisitions and new financing arrangements continue to keep step with change and growth in various aspects of the firearms and ammunition industry.
Among the latest such news is the Apr. 4 announcement that an affiliate of Peak Rock Capital, an Austin, TX, based private equity firm, has acquired Hunter’s Specialties, Inc., a leading manufacturer and supplier of hunting accessories.
Headquartered in Cedar Rapids, IA, Hunter’s Specialties is a leading manufacturer and supplier of branded hunting products for mass merchant and sporting goods retailers. The company’s portfolio includes, scent control products, game calls, attractants, wildlife management products, and general hunting accessories.
Founded in 1977, the company has developed several marquee brands in the category, including Hunter’s Specialties®, Scent-A-Way®, HS Strut®, Johnny Stewart®, Vita-Rack®, and Wayne Carlton’s Calls®.
Anthony DiSimone, CEO of Peak Rock Capital, said, “As demonstrated by a number of our recent acquisitions, we are actively seeking to expand our portfolio of leading consumer products companies. We are excited to apply our resources and expertise to assist Hunter’s Specialties in enhancing its growth and strategic position.”
Peter Leibman, managing director of Peak Rock Capital, added, “Hunter’s Specialties has a strong competitive position with a unique product portfolio, leading brands and longstanding customer relationships. We believe Hunter’s Specialties is an excellent platform for expansion through new product development and strategic add-on acquisitions. We are excited to work with the company’s visionary founders and outstanding management team in pursuing these opportunities.”
David and Carman Forbes, founders of Hunter’s Specialties, commented, “We are very proud of what the company has been able to accomplish with the help of our employees, customers, and suppliers over its 38 year history. We are pleased that Peak Rock is investing in Hunter’s Specialties and that the company will benefit from the firm’s strategic and operational expertise to help guide it to the next level of success.”
Larry Bildstein, CEO of Hunter’s Specialties, commented, “We are excited to partner with Peak Rock and are certain that we will benefit from Peak Rock’s knowledge of the industry and its resources, as we seek to capitalize on the opportunities available to expand our business. This is an exciting time for Hunter’s Specialties, and we look forward to growing our business in partnership with our customers, suppliers and employees.”
Peak Rock Capital is a private equity firm that makes debt and equity investments in middle market companies. Peak Rock invests in companies where it can support senior management in driving rapid growth and profit improvement through operational and strategic changes.
Industry DC Fly-In
When member company executives joined in the recent seventh annual Washington, DC, fly-in organized by the National Shooting Sports Foundation (NSSF) they had a lot of healthy business to report on Capitol Hill.
The firearms and ammunition industry executives met with members of both houses of Congress to discuss such matters as the $37.7 billion national economic impact of the firearms industry, the need for revenue neutral measures to allow the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) to reduce the currently lengthy backlogs in form-processing times, and the opportunity to improve the provision of safety information and gun locks through law enforcement agencies across the country.
Re-starting funding of Project ChildSafe was a key item on the agenda.
NSSF Senior Vice President and General Counsel Lawrence G. Keane said of the Fly-In, “We always welcome the opportunity to speak with our elected representatives to help ensure that the economic contribution of our industry members is understood and that we continue to work on a bipartisan basis…”
But the key message was that the gun industry’s economic impact nearly doubled in the past five years.
The total economic impact of the firearms and ammunition industry in the US increased from $19.1 billion in 2008 to $37.7 billion in 2013, a 97% increase, while the total number of fulltime equivalent jobs rose from more than 166,000 to more than 245,000, a 48% increase in that five-year period, according to a new NSSF report.
Stephen L. Sanetti, NSSF president and CEO Officer, noted that “While our nation’s overall economic recovery has been slow since 2008, our industry has been a true bright spot, increasing our direct workforce by nearly half, adding jobs that pay an average of more than $47,700 in wages and benefits.” The Firearms and Ammunition Industry Economic Impact Report: 2013 provides a state-by-state breakdown of job numbers, wages and output covering direct, supplier and induced employment, as well as federal excise taxes paid.
Industry Briefs
The Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) recently took its troubled eForms systems offline. NSSF has been working to get additional resources to improve all ATF’s interactions with federally licensed firearms retailers, including form-processing times. Users of the system were told by ATF in an email that “The eForms software is not performing to our expectations. As a result, we are taking the eForms system down until further notice. We apologize for any inconvenience and appreciate your patience as we work with our industry partners to deliver a quality product. Any eForm (already) submitted will continue to be processed. The finalized forms will be sent to the user via email. Until the eForms system is returned to service for the industry, all imports forms (Forms 6 Part I and 6A), NFA forms (1, 2, 3, 4, 5, 9 and 10), and AFMER reports (Form 5300.11) must be submitted via paper, including any eForms in draft status.” Questions should be directed to eForms.admin@atf.gov. NSSF will keep you apprised of developments.
Then, just as TGM was going to press, the NICS system reported problems with its phone system for licensees seeking background checks. That notice said the eForm system was working and encouraged FFLs to sign up for that system to speed purchase approvals.
