Post by oldhippy on Jan 10, 2020 20:43:06 GMT
AOBC To Spin-Off Into Two Independent Companies
By Jade Moldae
Nov. 13, American Outdoor Brands Corporation (AOBC) announced a plan to spin-off its outdoor products and accessories business from its firearm business. The proposed transaction, expected to be complete in the second half of 2020, would create two independent publicly traded companies: Smith & Wesson Brands Inc. (encompassing the firearm business) and American Outdoor Brands Inc. (encompassing the outdoor products and accessories business). AOBC officials estimate the domestic market for each category totals $4.2 and $30-plus billion, respectively.
“As a provider of quality products for shooting, hunting and rugged outdoor enthusiasts in the global consumer and professional markets, we report our results in two very distinct business segments: Firearms and Outdoor Products & Accessories,” said James Debney, AOBC president and CEO. “Separating into two independent, public companies will benefit all of our customers by allowing each business an enhanced focus on its unique customers, products and opportunities. The result will be two industry-leading companies, each one entirely focused on delivering enhanced innovation and quality products.”
Headquartered in Springfield, Mass., Smith & Wesson Brands Inc. will continue its near 170-year history in the firearms business and market the Smith & Wesson, M&P, Performance Center, Thompson/Center Arms and Gemtech brands. Smith & Wesson Brands Inc. is expected to generate revenue between $450 million and $500 million in its first 12 months as an independent company.
In addition to the spin-off, AOBC announced significant personnel changes at the top of both new companies. After leading the firearms business for the past 10 years, Debney will be transitioning to president of the outdoor products and accessories segment.
“Since we established this business five years ago, I have been enthusiastic about its potential for both organic and inorganic growth. We’ve successfully acquired and integrated several respected consumer brands and grown the outdoor products and accessories business so it has become a meaningful percentage of AOBC’s overall revenue,” he said. “The spin-off will allow me to dedicate 100% of my energy to growing outdoor products and accessories and help it achieve its appropriate valuation. I look forward to continue building on our strong brand portfolio, innovating new products, and expanding our addressable markets.”
Following Debney’s transition, Mark Smith will serve as CEO of Smith & Wesson Brands Inc. Smith’s current role is president of AOBC’s Manufacturing Services Division.
“[Smith] has demonstrated his knowledge and ability to successfully navigate a fluctuating business environment, while remaining focused on the importance of new product launches in driving market share and growth,” Debney said.
Jeffrey Buchanan, AOBC EVP and CFO, will retire once the spin-off is complete. Upon Buchanan’s retirement, Deana McPherson will assume the role of CFO of Smith & Wesson Brands Inc., and H. Andrew Fulmer will serve in the same capacity for American Outdoor Brands Inc.
“There should be no significant change for retailers and distributors,” Debney shared. “In fact, we anticipate most won’t notice anything different — the same sales force, customer service and brand marketing support they’ve always had.”
www.aob.com
By Jade Moldae
“As a provider of quality products for shooting, hunting and rugged outdoor enthusiasts in the global consumer and professional markets, we report our results in two very distinct business segments: Firearms and Outdoor Products & Accessories,” said James Debney, AOBC president and CEO. “Separating into two independent, public companies will benefit all of our customers by allowing each business an enhanced focus on its unique customers, products and opportunities. The result will be two industry-leading companies, each one entirely focused on delivering enhanced innovation and quality products.”
Headquartered in Springfield, Mass., Smith & Wesson Brands Inc. will continue its near 170-year history in the firearms business and market the Smith & Wesson, M&P, Performance Center, Thompson/Center Arms and Gemtech brands. Smith & Wesson Brands Inc. is expected to generate revenue between $450 million and $500 million in its first 12 months as an independent company.
Based in Boone County, Mo., American Outdoor Brands Inc. is expected to generate revenue between $200 and $210 million in its first 12 months as an independent company. It owns over a dozen brands, including Caldwell, Crimson Trace, Wheeler, Tipton, Frankford Arsenal, BOG and others.
“There should be no significant change for
retailers and distributors. Most won’t notice anything
different — the same sales force, customer service
and brand marketing they’ve always had.”
— James Debney, AOBC President and CEO
retailers and distributors. Most won’t notice anything
different — the same sales force, customer service
and brand marketing they’ve always had.”
— James Debney, AOBC President and CEO
In addition to the spin-off, AOBC announced significant personnel changes at the top of both new companies. After leading the firearms business for the past 10 years, Debney will be transitioning to president of the outdoor products and accessories segment.
“Since we established this business five years ago, I have been enthusiastic about its potential for both organic and inorganic growth. We’ve successfully acquired and integrated several respected consumer brands and grown the outdoor products and accessories business so it has become a meaningful percentage of AOBC’s overall revenue,” he said. “The spin-off will allow me to dedicate 100% of my energy to growing outdoor products and accessories and help it achieve its appropriate valuation. I look forward to continue building on our strong brand portfolio, innovating new products, and expanding our addressable markets.”
Following Debney’s transition, Mark Smith will serve as CEO of Smith & Wesson Brands Inc. Smith’s current role is president of AOBC’s Manufacturing Services Division.
“[Smith] has demonstrated his knowledge and ability to successfully navigate a fluctuating business environment, while remaining focused on the importance of new product launches in driving market share and growth,” Debney said.
Jeffrey Buchanan, AOBC EVP and CFO, will retire once the spin-off is complete. Upon Buchanan’s retirement, Deana McPherson will assume the role of CFO of Smith & Wesson Brands Inc., and H. Andrew Fulmer will serve in the same capacity for American Outdoor Brands Inc.
“There should be no significant change for retailers and distributors,” Debney shared. “In fact, we anticipate most won’t notice anything different — the same sales force, customer service and brand marketing support they’ve always had.”
www.aob.com