GemTech Purchased by Smith & Wesson
Its finally public. The worst kept secret.
I called it. Smith & Wesson buys Gemtech Silencer. I have said many times that major Firearms manufacturers are going to purchase silencer manufacturers in order to have a ready-made product line with branded silencers to sell with their branded firearms. I theorized that Smith & Wesson would be looking at a Gemtech size company to bring into its fold. And here it is.
The question is why now? Sale are still slow. Is HPA suddenly going to pass? Is something else happening to make silencer companies attractive to larger corporations in a depressed market?
It has also been noted by a member of the industry that after a year of depressed sales brought on by the implementation of ATF41F, the election of a president who is perceived to be Second Amendment friendly and then the irrational exuberance associated with the HPA, that the value of several companies have decreased enough to make them attractive acquisitions.
Silencer market v3.0. The real question is what effect this will have on the smaller manufacturers in the market.
Economies of scale: They are competing against the economies of scale that Remington, Ruger and Smith & Wesson can generate in their production processes.
Marketing: They are also competing against the marketing of these three large nationally recognized American Firearms manufacturers.
It appears that Smith & Wesson is getting in position for an expansion of the silencer Market. It's a win-win for Smith & Wesson. You've HPA passes, they have a ready-made suppressor for the expansion of the market. If HPA does not pass, they are still in position to co-brand their firearms and sell them with a Smith & Wesson suppressor and expand the market a little slower
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Originally Posted by Singlestack Wonder
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