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American Outdoor Brands Agrees to Acquire Fish Tales Assets

American Outdoor Brands Corporation AOBC announced that its accessories business has agreed to acquire all the assets of Fish Tales, LLC. This acquisition will further expand business of  the company in the accessories market.

Fishing Accessories Market

American Outdoor Brands is making strategic acquisitions to expand its operations and venture into new markets. In Aug 2016, the company acquired assets of Taylor Brands, LLC, to establish its presence in the knives and tools market.  Taylor Brands is a designer and distributor of high quality knives and specialty tools and the owner of a number of highly-regarded brands.

The decision to acquire Fish Tales will supplement the earlier acquisition and help the company to further its foothold in the knife and tool market as well as foray into the fishing accessories market. Fish Tales will bring on board premium sportsman knives and tools for fishing and hunting, including the knife brand, Bubba Blade™.

Bubba Blade is a well-recognized brand among outdoor enthusiasts. American Outdoor Brands will not only be able to expand its accessories business through this acquisition but also innovate and churn out new products for other adjacent markets.

Long-Term Plans

American Outdoor Brands has plans to expand operations through both organic and inorganic routes. Recently, the company decided to acquire Gemtech, a provider of high quality suppressors and accessories, to expand its firearms business (read more: American Outdoor Signs Agreement to Acquire Gemtech).

In fiscal 2017, the company gained from the contribution of its acquired assets. It appears that going forward, expansion of operation through inorganic ventures will continue to boost the performance of the company.

Price Movement

American Outdoor Brands has returned 2.4% in the last six months compared with the Zacks categorized Aerospace- Defense Equipment  industry’s gain of 13.3%.

The company delivered an average positive earnings surprise of 28.21% in the last four quarters. We expect its expanded product offering to help hold its strong position.

Zacks Rank & Stocks to Consider

American Outdoor Brands currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space are Curtiss-Wright Corporation CW, sporting a Zacks Rank #1 (Strong Buy), and Rockwell Collins Inc. COL and TransDigm Group Incorporated TDG, each carrying a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank  stocks here.

Curtiss-Wright Corporation delivered average positive earnings surprise of 5.11% in the last four quarters. Its 2017 earnings estimates moved up 1.36% to $4.48 over the last 90 days.

Rockwell Collins delivered average positive earnings surprise of 2.45% in the last four quarters. Its fiscal 2017 earnings estimates moved up 10.9% to $6.02 over the last 90 days.

TransDigm Group delivered average positive earnings surprise of 3.74% in the last four quarters. Its fiscal 2017 earnings estimates moved up 0.4% to $11.61 over the last 90 days

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