Smith & Wesson Plans to Sell Thompson/Center Arms Brand

    Thompson/Center Arms has been a subsidiary of Smith & Wesson Brands Inc. since 2007, but will soon be divested from SWBI.

    Thompson/Center Arms has been a subsidiary of Smith & Wesson Brands Inc. since 2007, but will soon be divested from SWBI.

    Smith & Wesson Brands Inc. is a publicly traded company listed on the USA’s second-largest stock exchange, the Nasdaq, under the ticker symbol SWBI. After they announced their split from American Outdoor Brands in 2020, and following the massive uptick in firearms sales over the last year or so, the company appears to be doing well. They employ more than 2000 people, and last reports put their revenue at $678.39MM. At the time of this writing, shares of SWBI are up a staggering amount from one year ago – over 160%! In addition to the storied Smith & Wesson firearms brand, the company owns a number of subsidiary entities. One of these, since Smith & Wesson’s purchase of them in 2007, has been Thompson/Center Arms.

    Thompson/Center Arms is probably best known for their muzzloaders, like this Bone Collector edition T/C Triumph...

    Thompson/Center Arms is probably best known for their muzzleloaders, like this Bone Collector edition T/C Triumph…

    Although Thompson/Center Arms is a smaller manufacturer, they are an important one. Their niche of the firearms market tends to focus primarily on hunting rifles, including a line of muzzleloaders. These muzzleloaders first came onto the market in the 1960s, and Thompson/Center Arms is credited near single-handedly for the resurgence of black powder hunting guns that began in the ’70s. The company is also noted for interchangeable caliber platforms, which hearken back to their original Contender hunting pistol from 1967, just two years after their founding. Today, Thompson/Center Arms also offers five bolt-action models and two rimfire rifles. Soon, this celebrated gunmaker will separate from its parent company, as Smith & Wesson has issued the following press release detailing their intent to spin off Thompson/Center Arms. It appears that investors are reacting to this news favorably, as SWBI shares gained 7% on the day of the announcement. The release reads:

    ... but they also offer some more modern firearms, like this Performance Center LRR (Long Range Rifle) model.

    … but they also offer some more modern firearms, like this Performance Center LRR (Long Range Rifle) model.

    Smith & Wesson Brands, Inc. Announces Intent to Divest Thompson/Center Arms™ Brand

    SPRINGFIELD, Mass., May 3rd, 2021 — Smith & Wesson Brands, Inc. (NASDAQ Global Select Market: SWBI), a leader in firearm manufacturing and design, today announced that it plans to divest its Thompson/Center Arms brand. This decision is part of the Company’s broader strategic plan that will focus on its core Smith & Wesson brands.

    Mark P. Smith, President and CEO of Smith & Wesson Brands, Inc., said, “Thompson/Center is a beloved hunting brand with a longstanding heritage, and we are committed to ensuring a smooth transition. Thompson/Center Arms’ loyal consumers should rest assured that they will continue to receive the world-class firearms, accessories, and customer service support that the brand has been known for since its founding in 1965.  We remain fully committed to the hunting and long-range shooting market, and with this divestiture we will be able to now focus on these categories under our iconic Smith & Wesson brand.  Additionally, this will allow us to immediately redirect manufacturing capacity to increase overall production volumes, allowing us to gain additional market share while simultaneously increasing profitability.”

    At this time, a buyer for the Thompson/Center Arms brand has not been identified; however, the divestiture is not expected to have a material financial impact on the Company’s first quarter fiscal year 2022 results and the Company expects the divestiture to be accretive to the Company’s full year fiscal 2022 through higher overall production levels, increased margins, and lower marketing costs. The Company states that this decision will not result in a workforce reduction as its flexible manufacturing model allows it to repurpose capacity immediately to other areas without a headcount reduction.

    Photos courtesy of Thompson/Center Arms.


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    Will P

    Lifelong hobby/sport shooter and hunter, former US Army infantryman, perpetual firearms student. Always seeking to become better and learn more. Interested in a wide variety of shooting disciplines, and passionate about all kinds of guns. Contact on Instagram: @WillTFB