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

Henry Mini Bolt G2 02
Henry Mini Bolt G2 02

Henry Updates Mini Bolt Youth Rifle

Henry Repeating Arms introduced its Mini Bolt Youth rifle nearly 25 years ago as an ideal training rifle for young firearm enthusiasts. In 2025, the platform received a number of design updates.

Preview: Avian-X AXP Lessers Fusion Pack

The AXP Lessers Fusion Pack from Avian-X offers a bundle of six durable life-like decoys in a variety of postures to attract even the wariest of Canadian geese.

Gun Of The Week: Armscor TM22-S-18

We're on the range in this video to get a closer look at an affordable plinker imported by Armscor. Whether you’re training on a budget or just want a rimfire for plinking, the TM22 is a proven platform worth investigating.

The Armed Citizen® Aug. 22, 2025

Read today's "The Armed Citizen" entry for real stories of law-abiding citizens, past and present, who used their firearms to save lives.

Winter Warrior: The Finnish Lahti-Saloranta M/26 LMG

A little-known light machine gun from the inter-war era, the Finnish Lahti-Saloranta M/26 garnered a poor reputation during its service in World War II, but a closer look and some context reveals how innovative it was for its time.

Federal Ammunition Honored By National 4-H Shooting Sports

Federal Ammunition was recently honored with the 2025 4-H Shooting Sports Pioneer Award, which recognizes individuals or companies that have made significant contributions to the 4-H Shooting Sports program at a national level.

Interests



Get the best of American Rifleman delivered to your inbox.