Smith & Wesson Brands Inc. announced that it has completed the previously announced spin-off of its outdoor products and accessories business. Smith & Wesson Brands, Inc. will continue to trade on NASDAQ under the ticker symbol “SWBI.” The spin-off company, American Outdoor Brands, Inc., will begin trading Tuesday on NASDAQ under the symbol “AOUT.”
The move was first announced last year.
The spin-off distribution was completed at 12:01 a.m. Eastern Time on August 24, 2020 to stockholders of record of SWBI as of the close of business on the record date of August 10, 2020. Each SWBI common stockholder received one share of AOUT common stock for every four shares of SWBI common stock held as of the record date.
No action or payment was required by stockholders of SWBI to receive the new AOUT shares. Stockholders who held SWBI common stock as of the record date will receive a book-entry account statement reflecting their ownership of the new AOUT shares or have their brokerage account credited with the new AOUT shares.
The spin-off has been structured to qualify as a tax-free distribution to SWBI stockholders and SWBI for U.S. federal income tax purposes. SWBI stockholders are urged to consult with their tax advisors with respect to the federal, state, local, and foreign tax consequences of the spin-off.
Smith & Wesson Brands Inc. is a maker of handguns, long guns and suppressor products under the Smith & Wesson, Thompson/Center Arms, and Gemtech brands.
American Outdoor Brands features Smith & Wesson Brands former the Outdoor Products & Accessories segment, a provider of shooting, reloading, gunsmithing and gun cleaning supplies, specialty tools and cutlery, and electro-optics products and technology for firearms. This segment produces products under the brands Caldwell, Crimson Trace, Wheeler, Tipton, Frankford Arsenal, Lockdown, BOG, Hooyman, Smith & Wesson Accessories, M&P Accessories, Thompson/Center Arms Accessories, Performance Center Accessories, Schrade, Old Timer, Uncle Henry, Imperial, BUBBA, UST, and LaserLyte.
The split is a reversal for 168-year-old Smith & Wesson, which changed its name to American Outdoor Brands in 2016 as part of a diversification push — the opposite corporate strategy from the one announced in November 2019 which led to the split. At the time, Smith & Wesson said the current political climate of gun control advocates pressuring firearms companies was making it tough for the camping and outdoor gear brands. They were getting barred from some sporting goods stores and were subject to boycotts.
Photo courtesy American Outdoor Brands
