Smith & Wesson Brand Sets to spinoff American Outdoor Brands

Smith and Wesson's brand spinoff is near and this is what you need to know. While still making the necessary preparation for its late summer spinoff, the American Outdoor Brands Corporation(AOBC), had already changed its name to Smith & Wesson Brands, Inc. Although the company revealed that the American Outdoor Brands Corporation (AOBC) would still remain in the stock market, it would return as American Outdoor Brands under the ticker symbol AOUT and no longer AOBC. Also, it would only return after the Smith & Wesson firearms business spins off the outdoor products and accessories business. 

The company's update on the spinoff reads

“During the quarter, we changed our company name from American Outdoor Brands Corporation to Smith & Wesson Brands, Inc. and our ticker symbol from AOBC to SWBI in preparation for the spin-off of our outdoor products and accessories business as a tax-free stock distribution to stockholders.  On track for completion in August, and subject to final approval by our Board of Directors and customary regulatory approvals, the spin-off will create two independent, publicly-traded companies: Smith & Wesson Brands, Inc. (the firearm business) and American Outdoor Brands, Inc. (the outdoor products and accessories business),” stated by Jeffrey D. Buchanan, Chief Financial Officer.

In the recently submitted quarter report by the company, Smith & Wesson recorded a huge revenue growth with only $34 million as net debt.

American Outdoor Brands first announced its spinoff in November 2019, however after two months, the company's CEO, James Debney was sent out of the company due to “conduct inconsistent with non-financial company policy.”

Prior to this period, the company planned to make Debney the CEO of the American Outdoor business. Debney was later replaced by Mark Smith and Brian Murphy as co-CEOs. Notwithstanding, the spinoff is expected to be completed by August 2020