The Smith & Wesson Holding Corporation may change names next year. The company announced an unscheduled stockholder meeting for December to seek approval to change the company’s name to American Outdoor Brands Corporation. This seems to reflect what I’ve said previously about the company diversifying its holdings.
Before anyone panics, the Smith & Wesson Holding Company (NASDAQ:SWHC) is not the company that makes the iconic firearms. The gun maker is Smith & Wesson Corporation. SWHC is the parent company of Smith & Wesson Corporation. SWHC owns a range of companies like Battenfeld Technologies and Crimson Trace.
The move is not surprising, as SWHC has been on something of a buying spree lately. The company acquired Battenfeld in late 2014. Since then, it has acquired a number of new companies including:
- Ultimate Survival Technologies
- Taylor Brands (Schrade, Old Timer, Uncle Henry, others)
- Crimson Trace
With all of the acquisitions, SWHC divided its holdings into divisions. For example, Crimson Trace is part of the new ElectroOptics division.
During a recent earnings call, it seemed obvious to me that SWHC was in the process of expansion and repositioning so that it could offer a broader range of products away from guns. “Rugged outdoor market” was a term frequently used in that call.
If the name change is approved, it would take effect on January 1.