In today’s environment you wouldn’t think they would need the money:
“SPRINGFIELD, Mass., May 3, 2021 /PRNewswire/ – 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.”
I find it a little odd. They have restructured the corporation and split into Smith and Wesson / American Outdoors. It ain’t like the company(ies) doesn’t have a couple dozen brands. I didn’t pay much attention to it, I have a guy that manages my investments. I just remember getting given AOUT stock a few months back as part of the split. T/C is kind of a bit player in the market, but the Contender niche is a damned loyal customer base. I wonder who will end up with it.
And Encore. Hopefully not some conglomerate like Freedom Group.
Their bolt guns are fairly decent entry level guns actually. The problem they have in that niche is the Ruger American and the Savages…
The Contender made that niche , they need to make it again.
I can understand S&W wanting to focus on their product line.
T/C might also be ready to stand on their own feet.
I would buy the argument if they didn’t have so much other stuff in their portfolio. I mean I get it, they own plastic production/development companies, tooling, automated machine control,… but they are parent to a lot of other stuff too.
Meh, they know their business better than me. That’s why I ride their coattails with my investments not the other way round.