A 15-year run that shifted the balance of power in the hunting industry is about to change. Smith & Wesson announced recently the company will divest Thompson/Center Arms brand from its portfolio. The move aims to bring focus back to core S&W brands and initiatives.
S&W to Divest Thompson/Center Arms
The move echoes similar ones made recently in the firearm industry. The current of acquiring and divesting companies seems still squarely in the ebb category, with Remington brands, Savage Arms and others recently changing hands.
“Thompson/Center is a beloved hunting brand with a longstanding heritage, and we are committed to ensuring a smooth transition,’ said Mark P. Smith, President & CEO, Smith & Wesson. “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.”
A company press release stated Smith & Wesson had not identified a buyer at this time. The company also claimed the divestiture would not impact 2022 first quarter fiscal results. Those numbers should show higher overall production levels, increased margins and lower marketing costs. Smith & Wesson also plans no reductions in workforce manpower. It appears the company will instead refocus all energy and resources to turning out S&W core products, presumably M&P rifles and pistols, revolvers and more.
The Thompson/Center Arms brand rocketed into popularity in the early 2000s, sponsoring big-game hunts all over the world. The brand dominated outdoor television and other media prior to acquisition by S&W for a reported $102 million. For even more info, please visit tcarms.com.
