Consolidation of firearm and outdoor brands continue with the latest acquisition by American Outdoor Brands. The latest company to be acquired is Bubba Blade. The transaction is expected to be completed with cash on hand. American Outdoor Brands expects to complete the purchase by the end of summer.
In recent years, the firearms industry has seen many smaller companies come under the ownership of larger holding corporations. One of the most active companies in recent years has been the American Outdoor Brands Corporation (AOBC).
Formerly known as Smith & Wesson Holding Corporation, AOBC now has a number of well known industry leaders in its portfolio including Smith & Wesson, Crimson Trace and Battenfeld Technologies. Another acquisition that was announced this month was the purchase of suppressor manufacturer Gemini Technologies (aka Gemtech.) That purchase is expected to be completed by the end of summer.
I suggested several years ago that AOBC (then Smith & Wesson Holdings) appeared to be diversifying its portfolio. With the softness of the current gun market, moving into other areas may be a winning strategy for the company.
Bubba Blade offers a variety of hunting and survival knives that compliment the existing AOBC firearms brands. However, Bubba Blade also makes a broad range of knives and tools that are designed for fishing. This would appear to help AOBC broaden its consumer sales channels and be less dependent on firearms sales from quarter to quarter. This can help keep brands like Smith & Wesson out of the hot seat in soft gun markets like we are experiencing today.