A Michigan company that made the Inc. 5000 list three years in a row has agreed to buy the Franklin-based security fence manufacturer formerly known as Universal Safety Response.
FutureNet Group on Tuesday finalized its deal for Smith & Wesson Security Solutions and will pay less than $10 million for the company. By comparison, Smith & Wesson paid about $80 million for USR in the summer of 2009.
The security barrier division — renamed Smith & Wesson Security Solutions last year — initially justified that price and boomed in its first year under its new corporate umbrella, helped by rising government spending. But its main customers retreated soon after and the division posted a loss of $15.9 million on revenues of $30.8 million in fiscal 2012. The year before, losses were much larger thanks to asset writedowns, while revenues came in at $50 million.
FutureNet President and CEO Perry Mehta was traveling Wednesday and could not be reached for comment about his plans for his new holding. Smith & Wesson Security Solutions President Barry Willingham could not be immediately reached Wednesday afternoon.