Barry M. Monheit, Chairman of the Board, said, “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…
Headquartered in Springfield, Massachusetts, Smith & Wesson Brands, Inc. will continue its iconic firearm business with a 167-year history of delivering market leading, personal protection and sport-related firearms for consumers and professionals. This business’s industry-leading handgun, long gun, and suppressor products are marketed under the Smith & Wesson®, M&P®, Performance Center®, Thompson/Center Arms™, and Gemtech® brands. The company’s financial profile is expected to yield strong cash flows, a granular focus on organic growth, and profitability with a plan to eventually return capital to stockholders in the form of dividends and stock repurchases. Assuming a spin-off in eight to ten months, Smith & Wesson Brands, Inc. is expected to generate revenue between $450 million and $500 million and adjusted EBITDAS between $90 million and $105 million in its first 12 months as an independent company.
If this were entirely voluntary, this split may not necessarily be a bad thing. S&W guns don’t have that much in common with Hooyman tree saws (another American Outdoor Brands Corp. entity). What worries me is when the company itself cites “significant changes in the political climate” in its press release…
From three of the guys at our forum - The American Survival Guide:
Barry: Here is the part that worries me. “…company cites changes in political climate and economic, investing and insurance markets.” Insurance markets. No, I don’t like the sound of that.
Craig: Look at what insurance has done to national health care. It is simple - the government says “You MUST have insurance” and the insurance providers says, “You can only get coverage if (123xyz)” and that is 100% control over the entire population. Next, that will come to everything 2nd Amendment. Insurance providers will tell us, “If you keep a firearm in your home then you can NOT be insured!” And how the Hell would they know if we have a firearm in our home? Big Brother will tell Little Brother! Just like Google is now into all our medical records.
Lew: They looked at Remington being sued for making a sale of a Bushmaster Ar15 to Adam Lanza (which no one did, his mother supposedly bought it). This means if S & W gets sued in the future, they are minimizing their exposure by splitting the companys up. I am surprised it took this long.
Here’s the press release:
https://ir.aob.com/news-releases/news-release-details/american-outdoor-brands-corporation-announces-intention-separate
Excerpts:
If this were entirely voluntary, this split may not necessarily be a bad thing. S&W guns don’t have that much in common with Hooyman tree saws (another American Outdoor Brands Corp. entity). What worries me is when the company itself cites “significant changes in the political climate” in its press release…
From three of the guys at our forum - The American Survival Guide:
Barry: Here is the part that worries me. “…company cites changes in political climate and economic, investing and insurance markets.” Insurance markets. No, I don’t like the sound of that.
Craig: Look at what insurance has done to national health care. It is simple - the government says “You MUST have insurance” and the insurance providers says, “You can only get coverage if (123xyz)” and that is 100% control over the entire population. Next, that will come to everything 2nd Amendment. Insurance providers will tell us, “If you keep a firearm in your home then you can NOT be insured!” And how the Hell would they know if we have a firearm in our home? Big Brother will tell Little Brother! Just like Google is now into all our medical records.
Lew: They looked at Remington being sued for making a sale of a Bushmaster Ar15 to Adam Lanza (which no one did, his mother supposedly bought it). This means if S & W gets sued in the future, they are minimizing their exposure by splitting the companys up. I am surprised it took this long.