So Long: Smith & Wesson Moving Gemtech to Massachusetts

Pete over at The Firearm Blog reported this weekend that American Outdoor Brands Corporation (Smith & Wesson) intends to shutter the Idaho-based operations of recently-acquired Gemtech and relocate all manufacturing for the silencer company to Smith’s headquarters within anti-gun Massachusetts. The move comes after significant layoffs earlier this year, but it also follows a 2017 Gemtech initiative to construct a new base of operations in Meridian, Idaho – a project that was expected to continue even after the acquisition.

There’s no question that the merger between Gemtech, a longtime suppressor powerhouse, and Smith & Wesson, one of the largest firearms companies in the world, has been challenged. Back in early February, Gemtech unsuccessfully attempted to sue Smith & Wesson after the latter squashed business opportunities that might have led to an increased earn-out payment to Gemtech leadership.

It has been almost a year since I reported on the merger, and perhaps it’s time for a little mea culpa. Last year, I thought this move would be mutually beneficial. Given Gemtech’s history of high prices and spotty availability, I thought that investment from a giant like Smith & Wesson would be precisely what the guys in Idaho needed to turn things into gear. I was wrong, and not only that but developments over the past few months have left me wondering what Smith & Wesson planned to do after acquiring Gemtech.

Let me expand a bit further. The departure of Gemtech staff was one thing, but readers may not realize that Gemtech (and transitively, Smith & Wesson) lays claim to shockingly few patents. Aside from some that are allegedly pending, the company only exclusively owns five patented designs. Many of Gemtech’s most popular legacy designs are owned in part or wholly by other organizations and/or former employees. One of these is GSL Technology, a Michigan company owned and operated by Greg Latka. Greg was president of Gemtech for 20+ years, and his operation in Michigan was responsible for much of Gemtech’s OEM production. After that relationship soured, Latka started producing many of the designs for which he owns patents under the GSL brand. In short, if Smith & Wesson purchased Gemtech hoping to secure valuable intellectual property, they surely would have been disappointed. Though it is difficult to imagine that these facts weren’t well known prior to the acquisition. If Smith didn’t intend to keep Gemtech’s employees and wasn’t collecting a heap of new IP, the only things left to make the buy worthwhile would have been Gemtech’s name and existing assets.

It’ll be interesting to see what becomes of Gemtech once production and design fully migrate to Massachusetts. One thing is sure though; it isn’t the same company that Phil Dater started back in 1976.