It looks like Smith & Wesson is planning to divest their Thompson/Center Arms subsidiary. According to the press release below, it will allow them to shift production capacity to the S&W line where sales are booming. Their last financial report issued in March said that sales were up 102% over the same quarter a year ago.
They say the company will remain committed to both hunting and long-range shooting. That said, I don’t see anything in the existing Smith & Wesson product mix other than big boomer revolvers that is really hunting-related. The only long-distance rifle is a T/C bolt action on a chassis.
They did not announce a buyer for the company but merely said they plan to divest it. Looking at potential buyers, I think Savage Arms might be the most likely candidate. They would probably ditch the T/C bolt rifles as they compete with their own but could add the Contender and Encore lines. I really don’t see RemArms as being able to buy them and I don’t see Ruger being that interested now that they have Marlin.
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.
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.
If you want to buy them, they say to call them at 413-747-3448.