Meade Instruments pays $20 million in cash for Simmons Outdoor

Meade Instruments Corp. has signed an agreement with Simmons Outdoor Corp. to buy all its outstanding common stock for $20 million in cash.
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Meade Instruments Corp. has signed an agreement with Simmons Outdoor Corp. to buy all its outstanding common stock for $20 million in cash. Simmons distributes and markets binoculars and riflescopes under the Simmons, Redfield and Weaver brand names. John Diebel, Meade's chairman and CEO, predicts the Simmons purchase will firmly establish Meade in the binocular market, valued at $175 million wholesale, and the riflescope market, estimated to be $150 million at wholesale. Before the Simmons acquisition, Diebel said Meade only had an emerging domestic presence in the binocular market and no foothold in the riflescope market. "We expect the acquisition to make measurable contributions to Meade's top-line growth in coming years, adding as much as $40 million in revenue," he said. In addition to Simmons staff, Meade also plans to add three former senior members of the sales and management team and a sales vice president from Tasco Sales, another distributor of riflescopes and binoculars. The sale should be complete by November 30.

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