American Outdoor Brands to split into two companies

Nov. 13, 2019 4:30 PM ETSWBIBy: Clark Schultz, SA News Editor62 Comments
  • American Outdoor Brands (NASDAQ:AOBC) says it will spin off its outdoor products and accessories business as a tax-free stock dividend to its stockholders.
  • The split will create a firearm business called Smith & Wesson Brands and an outdoor products and accessories business that will keep the American Outdoor Brands name.
  • The proposed transaction is expected to be completed in the second half of calendar 2020.
  • The company says the purpose of the spinoff is to enable the management team of each company to focus on its specific strategies.
  • "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," says Chairman Barry Monheit.
  • Shares of AOBC are under a trading halt until 4:50 pm ET.
  • Source: Press Release

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