Smith & Wesson Holding Corporation called a special stockholder meeting in a move to change its name to American Outdoor Brands Corporation. The meeting is scheduled for December 13.
The move appears to be a very public display of what I have written about previously: that Smith & Wesson Holding Corporation (SWHC) is diversifying across a greater range of markets. In recent months, SWHC acquired Battenfeld Technologies, Crimson Trace and a growing number of smaller companies that offer products from flashlights to knives to first aid kits.
It is believed that the Smith & Wesson Corporation, the company that builds firearms, would not change its name and would operate as normal under the newly named American Outdoor Brands Corporation.
If approved, the name change would take effect on January 1, 2017. Its new stock symbol would be AOBC, and it would continue to trade on the NASDAQ market.
SWHC previously structured the company into several divisions and aligned its companies into these divisions based on the general market segment that each operates in. For example, Crimson Trace is in the electro-optics division.
Since August of this year, SWHC acquired, or announced its intention to acquire, at least three companies: UST Brands, Crimson Trace and Taylor Brands. Both UST Brands and Taylor Brands were acquired through BTI Tools, a subsidiary of Battenfeld Technologies. Battenfeld Technologies was acquired by SWHC in December of 2014.
Taylor Brands is known for knife making with recognizable brands like Schrade, Old Timer and Uncle Henry in its portfolio. UST Brands makes outdoor and survival equipment such as camping cookware, LED lanterns and paracord bracelets.
Disclosure: I do not own any stock or other interest in Smith & Wesson Holding Corporation or any other company in the firearms industry.