News| Industry News Smith & Wesson is one of the few publicly traded firearms manufacturers in the states. Smith & Wesson Brands, Inc is traded on the second-largest exchange the […]
News| Industry News
Smith & Wesson is one of the few publicly traded firearms manufacturers in the states. Smith & Wesson Brands, Inc is traded on the second-largest exchange the Nasdaq, under the ticker SWBI. In 2020, the company announced their breakaway from American Outdoor Brands portfolio. Smith & Wesson currently employs over 2,000 people while bringing a revenue of $678 million dollars in the last year. The stock for SWBI is up over 160% since last year. Smith & Wesson owns many small subsidiary entities under the SWBI label. One of these subsidiaries is Thompson/Center arms brands which Smith & Wesson is looking to sell.
Thompson/Center Arms is a smaller firearm manufacturer who focuses on hunting rifles, including a line of muzzleloaders. Thompson/Center Arms lead to the resurgence of black powder hunting rifles in the 1970’s. The company is also known for interchangeable caliber platforms as well. Currently, Thompson/Center arms offers five bolt-action rifles and two rimfire models.
Recently, Smith & Wesson has issued a press release detailing the move to sell off Thompson/Center Arms. The news of the potential sell was taken positively by investors with a 7% increase in share prices following the press release.
Below, is the press release from Smith & Wesson regarding the potential sale of Thompson/Center Arms brand.
Smith & Wesson Brands, Inc. Announces Intent to Divest Thompson/Center Arms™ Brand
SPRINGFIELD, Mass., May 3rd, 2021 — Smith & Wesson Brands, Inc. (NASDAQ Global Select Market: SWBI), a leader in firearm manufacturing and design, today announced that it plans to divest its Thompson/Center Arms brand. This decision is part of the Company’s broader strategic plan that will focus on its core Smith & Wesson brands.
Mark P. Smith, President and CEO of Smith & Wesson Brands, Inc., said, “Thompson/Center is a beloved hunting brand with a longstanding heritage, and we are committed to ensuring a smooth transition. Thompson/Center Arms’ loyal consumers should rest assured that they will continue to receive the world-class firearms, accessories, and customer service support that the brand has been known for since its founding in 1965. We remain fully committed to the hunting and long-range shooting market, and with this divestiture we will be able to now focus on these categories under our iconic Smith & Wesson brand. Additionally, this will allow us to immediately redirect manufacturing capacity to increase overall production volumes, allowing us to gain additional market share while simultaneously increasing profitability.”
At this time, a buyer for the Thompson/Center Arms brand has not been identified; however, the divestiture is not expected to have a material financial impact on the Company’s first quarter fiscal year 2022 results and the Company expects the divestiture to be accretive to the Company’s full year fiscal 2022 through higher overall production levels, increased margins, and lower marketing costs. The Company states that this decision will not result in a workforce reduction as its flexible manufacturing model allows it to repurpose capacity immediately to other areas without a headcount reduction.
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