Smith & Wesson Holding Company (SWHC), the parent company of such brands as Smith & Wesson, Crimson Trace, and Battenfield Technologies, reported today that shareholders approved the requested corporate name change. Effective January 2017, the new holding company name will be American Outdoors Brand Corporation. The press release below reports that shareholders "overwhelmingly" supported the name change. The winning percentage was not released but I have a request in to their investor relations department for this information.
As one of the shareholders of record that voted "No" on this name change, I still think this is a mistake on the part of the company. While their product mix has been greatly broadened through acquisitions of companies such as Crimson Trace and Battenfield Technologies, I still think the value of an instantly recognizable name - Smith & Wesson - is invaluable. The firearm division will still retain the name "Smith & Wesson" and it is only the holding company that is changing its name.
From investor relations:
Holding Corporation Will Become American Outdoor Brands Corporation
SPRINGFIELD, Mass., Dec. 13, 2016 /PRNewswire/ -- Smith & Wesson Holding Corporation (NASDAQ Global Select: SWHC), today announced that its stockholders have overwhelmingly approved a change to the holding company's name from Smith & Wesson Holding Corporation to American Outdoor Brands Corporation. The name change does not impact Smith & Wesson Corp., the name of the company's firearms division, which has legendary roots dating back to 1852 and will remain unchanged. The name change pertains only to the holding corporation that acquired Smith & Wesson in 2001 and now owns Smith & Wesson Corp., Battenfeld Technologies, Inc., and Crimson Trace Corporation, which represent the company's firearms, manufacturing services, accessories, and electro-optics divisions.
James Debney, President and Chief Executive Officer of Smith & Wesson, said, "We are excited about the results of today's stockholder vote. We believe that American Outdoor Brands Corporation is a name that truly represents our broad and growing array of brands and businesses in the shooting, hunting, and rugged outdoor enthusiast markets. Looking ahead, and operating as American Outdoor Brands Corporation, we intend to continue building upon our portfolio, focusing on brands and products that best meet the needs and lifestyle of our target consumers."
The name change will be effective on or about January 1, 2017, at which time the company will adopt the common stock trading symbol "AOBC" for its NASDAQ stock exchange listing.
Trying to distance itself???
ReplyDeleteI'm still waiting for their 8K filing that says the breakdown of the vote. Their VP for Investor Relations assured me it would be available today after the close of the stock market.
DeleteIt will definitely make it less embarrassing to sell off their firearms manufacturers should the latter ever become a drag on the bottom line. Witness the previous case of Colt Industries.
DeleteI really don't understand what the attraction is to the whole renaming thing. It's not like people are going to a store and trying to decide what brand they're going to buy; this is the corporate name. They're not going to rebrand Caldwell or Tipton or all the rest. Only a total idiot would throw out the 164 year history of the S&W brand and they say they're not doing that. The only people who will buy that brand name are investors buying stocks, and those people better be smart enough to not be distracted by a name. In the short term, it might hurt them by slowing or delaying sales. In the long term, the stock buyers better be smart enough to find them.
ReplyDeleteIt's one of those management fads that seems to always be around. Change names, change logos, change symbols. I worked for a major industry titan in aviation; they literally had a handful of customers (think Boeing, Airbus and literally a handful) and all of their people knew all of our people. Still, they felt the need to redesign the logo. Fads.