With yesterday's late-afternoon announcement by Smith & Wesson announcing their planned acquisition of Crimson Trace Corporation, the Wilson, Oregon company that has lead the industry in the development and popularization of the laser on firearms, the entire industry was in a word..surprised.

For the past 10 years, Crimson Trace has enjoyed a spectacularly good run- not only developing and selling high-quality, high-demand laser sighting devices, but essentially driving the dialog that has moved the laser from fad or training-only status to it's current position as near-requisite for both defensive handguns and rifles. That's one reason the news of the acquisition was surprising to most of the industry.

Although neither company is commenting beyond the press release - which you can read in today's news section, we're hearing that both sides are excited at the prospect. For Smith & Wesson, it's a statement to the rest of the industry. For Crimson Trace, it's the chance to become more - as an electro-optics division of Smith & Wesson, they have the ability to move into other areas- but bring along their highly successful supplier status with Cabela's, MidwayUSA, Brownells, Optics Planet, and others.

If there's any downside, it could lie in Crimson Trace's OEM business. The company has worked closely with many gun companies, enabling them to simultaneously -or jointly- announce new products. But that's a question that won't be answered overnight. Having spoken with senior executives at other gun companies, it's definitely a wait-and-see situation for them.

The stock market was obviously pleased with the addition of a company with the reputation, products and margins of Crimson Trace to the Smith & Wesson Holdings. S&W stock (NASDAQ: SWHC) closed at $29.37 yesterday, up seventy-two cents per share.

With last week's announcement of the acquisition of cutlery maker Taylor Brands, Smith & Wesson looks to be in the growth mode. And S&W President & CEO James Debby's description of S&W as a company with a "strategy to become a leader in the market for shooting, hunting and rugged outdoor enthusiasts" might point to a broadening of the Smith & Wesson horizons.

As always, we'll keep you posted.