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By Maureen Flanagan
Montana Silversmiths, Inc., based outside Billings, MT, is the premier brand of western-style accessories and lifestyle products. Founded in 1973 as a manufacturer of buckles and saddle trim, the company now produces a range of premium buckles, jewelry, and home d�cor merchandise sold through 5,800 domestic and international dealers. As a result of its highly successful merchandising and sponsorship programs, Montana has become one of the best recognized brands in the western market with the leading share in its core markets.
In an October 22, 2004 transaction, Montana was acquired by Thompson Street Capital Partners, a private equity fund based in St. Louis. In support of the buyout, American Capital Strategies, Ltd. (Nasdaq: ACAS) provided a $26 million financing package that included senior and subordinated debt financing and a revolving credit facility. Thompson Street and Montana's management invested in equity.
Montana joins American Capital's portfolio of more than 100 middle market companies representing a broad range of industries. Since 1997, American Capital has invested more than $3 billion in the middle market.
For more information about American Capital's portfolio click here. "With its continuous new product development and growing customer base, Montana has opportunities to market exciting new accessories to western enthusiasts worldwide," said Dennis Potzman, Montana's CEO.
 Montana's more than 10,000 SKUs include an array of buckles, jewelry, watches and accent trim sold under the company's flagship Montana Silversmiths brand. In 2000, the company added Montana Lifestyles, a line of home décor products that include figurines, plush toys, picture frames, and tableware. In 2003, it introduced Reflexions, a line of western jewelry and leather goods. Pictured at left, is the Montana Silversmiths Black N Brown Face Bull Rider Watch.
Montana's unique, customized designs are made with proprietary metal engraving, stamping, and plating technologies and with the company's own tooling. The company's in-house development team and select outside designers enable Montana to design and launch more than 400 new products every year.
Montana's strong brand recognition, product selection and merchandising capabilities have enabled it to establish relationships with virtually every western retailer in the country. It has also developed relationships with dealers in Canada, Mexico, Australia, South America and Europe. The company helps dealers maximize sales by providing branded display cases with an individualized merchandising diagram and model stock chosen to match local and regional buyer habits. Through this program, Montana generates sales per square foot that are many times higher than other manufacturers of western products. In addition to its semi-annual product catalogs, the company markets through industry sponsorships, providing trophy buckles for rodeos and other events. It also runs licensing programs with western associations and maintains a high profile through advertisements and trade shows.
The military market represents growth potential for Montana, particularly in light of recent increases in military personnel and spending. Montana was recently approved by Army and Air Force Exchange Services to have Montana's military-style veteran's buckles included in its catalog.
With its expanded product line and new marketing and sales channels, Montana is taking on its own western expansion.
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