Smith & Wesson Brands, Inc., announced yesterday its plans to sell the rifle brand Thompson/Center Arms as part of its “broader strategic plan that will focus on its core Smith & Wesson brands,” the company said in a press release to investors.
Smith & Wesson acquired Thompson/Center in 2006 when S&W was still under the control of American Outdoor Brands (AOB). Smith & Wesson Brands kept the firearms division of Thompson/Center, T/C Arms, when it split with AOB. It has not announced a buyer for the T/C Arms brand.
“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,” said Mark P. Smith, President and CEO of Smith & Wesson Brands, Inc.
“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,” Smith continued.
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The company told investors that divesting T/C Arms will benefit S&W’s bottom line through higher overall production levels, increased margins, and lower marketing costs. The decision will not result in a workforce reduction at S&W, according to the press release.
T/C Arms’ most popular firearm is likely the budget-friendly bolt-action T/C Compass line of rifles. Muzzleloading firearms comprise the majority of its offerings, and the company also makes a semi-automatic rimfire rifle called the T/CR22.
Smith & Wesson has endured its fair share of controversy over the last few years. The company has faced multiple lawsuits from the families of victims of mass murders, including a suit from the Brady Campaign to Prevent Gun Violence. In February of this year, a Canadian judge ruled that the company may be liable for a 2018 shooting because the company has not implemented “smart-gun” technology.
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In 2019, Smith & Wesson’s former parent company, American Outdoor Brands, forced a split with S&W in what many observers believed was an attempt to shield AOB from negative press related to firearms. S&W brought with it all the firearms brands while AOB retained the outdoor products and accessories brands.
Here’s what then-S&W CEO Michael F. Golden said about T/C when S&W acquired the company in 2006:
“The acquisition of Thompson/Center Arms is an important step in our diversification strategy. Thompson/Center Arms has consistently delivered both profits and strong gross margins while building its position in the hunting rifle market. This move will expand our presence in the $1.1 billion long gun market by providing immediate entry into the hunting rifle and black powder segments, which represents approximately $600 million in domestic sales. In addition to carving out a leadership role in black powder and single shot hunting rifles, Thompson/Center Arms has developed tremendous expertise in manufacturing long-gun barrels, a competency that will be important to Smith & Wesson as we expand our capabilities even further into the long gun market.”