UPDATE 1-Smith & Wesson to nearly double revenue within 3-5 yrs

Feb 4 (Reuters) - Smith & Wesson Holding Corp (SWHC.O), known for its 156-year-old handguns business, is planning to almost double its annual revenue and grow through selective acquisitions in the next three to five years.

The company, which had raised its dependence on consumer spending by entering the rifle and long-gun markets, expects to grow its retail market share for long guns by 10 to 15 percent over the next three to five years, a regulatory filing showed.

Smith & Wesson expects to raise its handgun retail market share to 30 percent in the same period.

The company plans to post $550 million in annual revenue in the period, up from the current $294 million.

Springfield, Massachusetts-based Smith & Wesson also expects gross margins to grow to 35 percent of net sales, compared with the current 31 percent.

The company, whose rivals include Ruger and Taurus for revolvers and Glock, Ruger and Springfield Armory for pistols, also said it expects to add at least $100 million in revenue from acquisitions.

Shares of the company were trading up 3 percent in early morning trade Wednesday on Nasdaq. (Reporting by Nivedita Bhattacharjee in Bangalore; Editing by Pratish Narayanan)