London (CNN Business) American Outdoor Brands has announced plans to split its firearms unit, Smith & Wesson, from its outdoor products business, citing "changes in the political climate."

The firm said in a statement Wednesday that it would create two independent, publicly traded companies. The restructuring is expected to be completed in the second half of next year.

Existing shareholders will receive stock in two companies: American Outdoor Brands, which will sell products including knives and fishing gear, and the guns business, Smith & Wesson Brands.

"There have been significant changes in the political climate, as well as the economic, investing and insurance markets" since American Outdoor Brands began efforts to diversify away from guns, chairman Barry Monheit said in a statement.

American Outdoor Brands AOBC Shares inhave plummeted nearly 40% this year as US gun manufacturers face a backlash from consumers and investors over the use of their products in mass shootings. A rifle manufactured by American Outdoor Brands was used in a 2018 mass shooting that killed 17 people in Parkland, Florida.

Read More