Smith & Wesson Separates Firearms Business from American Outdoor Brands
SPRINGFIELD — Smith & Wesson plans to separate from the outdoor products and accessories businesses of American Outdoor Brands Corp. (AOBC). Smith & Wesson changed its name to American Outdoor Brands in 2016.
Instead, the organization will include two separate companies: Smith & Wesson Brands Inc., which will encompass the firearms business, and American Outdoor Brands Inc., which will include the outdoor products and accessories businesses.
“There have been significant changes in the political climate as well as the economic, investing, and insurance markets since we embarked upon what we believe have been our very successful diversification efforts,” said Barry Monheit, chairman of the board, in a press release. “We believe that separating into two independent public companies will allow each company to better align its strategic objectives with its capital allocation priorities.
“We also believe that this action will give the investment community clearer insight into the value-creation potential in each of these independent companies, ultimately driving enhanced stockholder value,” he added. “From the standpoint of our stockholders, at the time of the spinoff, the AOBC stockholders will own 100% of each company, thereby maintaining their pre-spin interest in both companies, and will thereafter have the ability to make distinct investment decisions tailored to their particular investment profile.”
James Debney, currently president and CEO of American Outdoor Brands Corp., will lead American Outdoor Brands Inc., while Mark Smith, currently head of firearms manufacturing operations, will be CEO of Smith & Wesson Brands Inc.