Fear & Loading: Tax-Free Dividend in American Outdoor Brands Split

by
posted on November 21, 2019
** When you buy products through the links on our site, we may earn a commission that supports NRA's mission to protect, preserve and defend the Second Amendment. **
aobc.jpg

American Outdoor Brands (AOB) announced that its Board of Directors has unanimously approved proceeding with a plan to spin-off its outdoor products and accessories business as a tax-free stock dividend to stockholders. The proposed transaction, which is expected to be completed in the second half of calendar 2020, would create two independent publicly traded companies: Smith & Wesson Brands, Inc. (which would encompass the firearm business) and American Outdoor Brands, Inc. (which 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,” said Barry M. Monheit, AOB chairman of the board. “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 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 percent 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.”

The company explained the purpose of the spin-off is to enable the management team of each firm to focus on its specific strategies, including (1) structuring its business to take advantage of growth opportunities in its specific markets; (2) tailoring its business operation and financial model to its specific long-term strategies; and, (3) aligning its external financial resources, such as stock, access to markets, credit, and insurance factors, with its particular type of business.

Based in Boone County, Mo., AOB will be a growth-oriented provider of outdoor products and accessories for rugged outdoor enthusiasts. James Debney will become CEO of the company upon successful completion of the spin-off.

Headquartered in Springfield, Mass., Smith & Wesson Brands will continue its iconic leadership in firearm design and manufacturing under the guidance of CEO Mark Smith, who is currently the president of the Manufacturing Services Division of AOB.

 

 

Latest

Stuart 45 Pistol Pre War Manuevers Web Main
Stuart 45 Pistol Pre War Manuevers Web Main

Guns Of The U.S. Tankers In World War II

Since the end of World War II, debates have raged about the effectiveness of American armored fighting vehicles in that conflict. Despite all the Monday morning armored quarterbacking, American AFVs were war-winners, driven to victory by some the finest fighting men our nation has ever produced.

MidwayUSA Foundation Awards Over $14 Million In Cash Grants In 2025

In honor of National Shooting Sports Month—held annually in August—along with the growing popularity of the sport with new participants, MidwayUSA Foundation announced it has distributed more than $14.2 million in cash grants to support youth shooting sports in 2025.

Making The KelTec PR57 In Wyoming

To make its PR57 handgun, KelTec invested in an entirely new manufacturing facility located in Rock Springs, Wyo. "American Rifleman Television" headed out for an inside look at the company's efficient production process.

Taurus 66 Combat: A New "Fighting Revolver"

First introduced in the 1970s, the Taurus 66 Combat is a medium-frame revolver that has seen several evolutions in its lifetime, and the latest update creates what the company considers "the final word in fighting revolvers."

Review: Taurus GX2

From cars to cellphones, as a product gets more sophisticated, it usually also gets more expensive. And, as modern handguns get more modular and optic-ready, their prices tend to go up.

Rifleman Q&A: A Garand Puzzlement

"We are a father-and-son NRA member tandem in search of an answer regarding the branding of an M1 Garand rifle. We own an M1 rifle that has markings indicating it was a “lend lease to England,” and it also has a .308 barrel/sleeve."

Interests



Get the best of American Rifleman delivered to your inbox.