SPRINGFIELD, Mass (WWLP) – A Springfield based gun manufacturer will become an independent company after an announcement made on Wednesday.
According to a news release sent to 22News, Smith and Wesson’s parent company, American Outdoor Brands, announced they’re intending to split their firearms business and outdoor accessor businesses as a tax-free stock dividend to its stockholders.
The news release states the proposed transaction would create two independent publicly traded companies. Smith and Wesson would encompass the firearm business and American Outdoor Brands would encompass the outdoor products and accessories business.
“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. 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 a clearer insight into the value creation potential in each of these independent companies, ultimately driving enhanced stockholder value. From the standpoint of our stockholders, at the time of the spin-off, 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.”– Barry M. Monheit, Chairman of the Board
Smith & Wesson employs about 1,600 people in Springfield and is one of the city’s largest employers.
The split is scheduled to be completed in the second half of 2020.