American Outdoor Brands Explained

American Outdoor Brands, Inc.
Former Name:Outdoor Products & Accessories Division of American Outdoor Brands Corp.
Type:Public
Traded As:NASDAQ:
Industry:Outdoor Products & Accessories
Founded: Battenfeld Technologies, Inc.
Hq Location City:Columbia, Missouri
Hq Location Country:United States
Area Served:Worldwide
Key People:Brian D. Murphy (president & CEO)
Products:Outdoor Products & Accessories

American Outdoor Brands, Inc., formerly known as Smith & Wesson Holding Corporation until 2016, is an American manufacturer of outdoor sports and recreation products, with a current 18 brands of outdoor equipment.[1] Until 2020, it owned Smith & Wesson firearms, when American Outdoor Brands was spun out,[2] partly due a changing political climate.[3] Its headquarters is located in Columbia, Missouri.

History

On May 11, 2001, Saf-T-Hammer Corporation acquired Smith & Wesson Corporation from Tomkins plc for US$15 million.[4] Saf-T-Hammer assumed US$30 million in debt, bringing the total purchase price to US$45 million.[5] [6] Saf-T-Hammer, a manufacturer of firearms locks and other safety products, purchased the company with the intention of incorporating its line of security products into all Smith & Wesson firearms in compliance with the 2000 agreement. On February 15, 2002, the name of the newly formed entity was changed to Smith & Wesson Holding Corporation.[7]

Smith & Wesson Holding Corporation announced in December 2014 that it was paying $130.5 million for Battenfeld Technologies, a Columbia, Missouri-based designer and distributor of hunting and shooting accessories.[8] The company made the acquisition with the eventual intent to merge all its existing Smith & Wesson, M&P and Thompson Center Arms accessories into a single division.[9]

In August 2016, Smith & Wesson Holding Corporation bought Crimson Trace, a laser-sight manufacturer, for $95 million[10] and Taylor Brands, a tool and knife maker, for $85 million.[11] In November of that same year, the company bought UST Brands, a survival equipment maker, for $32.3 million.[12]

The company had diversified from firearms into sporting goods and outdoor gear, the rugged outdoors business being a larger market than firearms, in hopes of insulating Smith & Wesson from the stock price volatility caused by the unpredictability of the gun business.[13] This culminated in the decision to change the company's name, and on November 7, 2016, Smith & Wesson Holding Corporation announced that it would change its name to American Outdoor Brands Corporation.[14] The name change took effect on the first business day of 2017.[15] The change occurred at a time when the firearms industry was receiving backlash over gun violence in America, and so was also seen as an attempt to disassociate itself from the negative repercussions surrounding the issue.[16]

In 2017, firearms accounted for 86% of American Outdoor Brands's revenues, and the company shipped 420,000 long guns.[17] American Outdoor Brands also owns Battenfeld Technologies,[18] Taylor Brands (a knife and tool maker bought in August 2016 for $95 million), and Crimson Trace (an electro-optics business which it bought in August 2016 for $85 million).[19]

On November 13, 2019, American Outdoor Brands Corp. said it would split into two companies: Smith & Wesson Brands, Inc., which would retain gun sales, and American Outdoor Brands, Inc. The transaction was expected to be finalized in the second half of 2020. The company cited changes in political climate and economic, investing and insurance markets.[20]

In January 2020, American Outdoor Brands replaced CEO P. James Debney following allegations of misconduct. The company named Mark Smith and Brian Murphy as joint CEOs.[21]

On 24 August 2020, the company was spun-off from Smith & Wesson, with S&W retaining the original stock ticker SWBI and American Outdoor Brands becoming a new publicly-traded company on the NASDAQ as American Outdoor Brands, Inc.[2]

On March 11, 2022, American Outdoor Brands announced that it entered into an agreement to purchase grill brand Grilla Grills.[22]

Notes and References

  1. Web site: American Outdoor Brands. aob.com.
  2. Web site: American Outdoor Brands, Inc. Completes Spin-off from Smith & Wesson. August 25, 2020. April 26, 2021.
  3. Web site: Lea. Brittany De. 2019-11-13. Smith & Wesson, American Outdoor Brands to split amid 'significant changes' in political climate. 2020-10-05. FOXBusiness. en-US.
  4. Book: Sweeney, Patrick . Patrick Sweeney (gunsmith)

    . Patrick Sweeney (gunsmith). The Gun Digest Book of Smith & Wesson. December 13, 2004 . Gun Digest Books. Iola, Wisconsin. 0-87349-792-9. 22 .

  5. Web site: Smith & Wesson Sold . May 16, 2001 . MCM staff . Multichannel merchant . November 10, 2015 . September 28, 2007 . https://web.archive.org/web/20070928022730/http://multichannelmerchant.com/printchannel/production/marketing_smith_wesson_sold/ . dead .
  6. Web site: Saf-T-Hammer buys Smith & Wesson. . May 14, 2001 . Eileen Brill . Wagner . November 11, 2015.
  7. Web site: Smith & Wesson Holding Corporation . Form 10-KSB . sec.gov . . August 20, 2015 . 2 . July 29, 2002.
  8. Web site: Smith & Wesson to Buy Firearm Accessories Firm Battenfeld . 2022-10-14 . finance.yahoo.com . 27 November 2014 . en-US.
  9. Web site: Smith & Wesson buys Battenfeld Technologies. December 6, 2014. Alicia . Stice . Columbia Daily Tribune. Columbia, Missouri . December 6, 2014.
  10. News: 2016-07-25 . BRIEF-Smith & Wesson Holding to acquire Crimson Trace Corp for $95.0 mln . en . Reuters . 2022-10-14.
  11. Web site: Robertson . Scott . Smith & Wesson purchases Taylor Brands for $85 million . 2022-10-14 . bjournal.com.
  12. Corporation. Smith & Wesson Holding. Smith & Wesson's Battenfeld Technologies to Acquire UST Brands. 2021-02-02. www.prnewswire.com. en.
  13. Web site: Fuscaldo. Donna. Don't Bring Your Guns to Town: Smith & Wesson to Change Name (SWHC). Investopedia. 12 March 2018. 14 December 2016.
  14. Web site: Gun maker Smith & Wesson to change name to American Outdoor Brands Corp.. Handley. Lucy. CNBC. January 1, 2017. December 13, 2016. https://web.archive.org/web/20161216060132/http://www.cnbc.com/2016/12/13/smith-wesson-to-change-name-to-american-outdoor-brands-corp.html. December 16, 2016. dead. mdy-all.
  15. American Outdoor Brands Corporation Completes Holding Company Name Change and Commences Trading Under NASDAQ Symbol "SWBI". American Outdoor Brands Corporation. January 3, 2017. February 14, 2017.
  16. News: Why Smith & Wesson Changed to American Outdoor Brands. Duprey. Rich. The Motley Fool. 2018-02-16. en.
  17. Web site: Where Do All The Assault Rifles Come From?. Priceonomics. 29 March 2018 . 3 April 2018.
  18. Web site: American Outdoor Brands. aob.com.
  19. Web site: Gun maker Smith & Wesson to change name to American Outdoor Brands Corp.. Lucy Handley, special to. CNBC. December 13, 2016. CNBC.
  20. News: Smith & Wesson Parent Plans Split. Cameron. Doug. Wall Street Journal. 14 November 2019. en-US. 2019-11-14.
  21. News: CEO of Smith & Wesson owner out after misconduct allegations. Rachel . Siegel . . January 16, 2020. en. 2020-02-28.
  22. Web site: 2022-03-11 . American Outdoor Brands to Acquire Grilla Grills . 2022-03-23 . CookOut News . en-US.