UPDATE 1-American Outdoor to split into two, separates firearms business

(Adds details on separation, executive comment, shares)

Nov 13 (Reuters) - Firearms maker American Outdoor Brands Corp said on Thursday it would split into two publicly traded companies, separating its outdoor products and firearms businesses, sending shares up 4% after the bell.

After the separation, the firearms business, its biggest revenue generator, would be under Smith & Wesson Brands Inc and the outdoor products and accessories business would be under American Outdoor Brands Corp, the company said.

The spin off will be tax-free and is expected to be completed in the second half of next year, the company said.

The AOBC stockholders will own 100% of each company at the time of the spin off and will then be able to decide on their investments, Chairman Barry Monheit said in a statement.

He also cited "significant changes" in the political climate as well as the economic, investing and insurance markets as a reason behind the separation.

The company's firearms business reported annual sales of $478.5 million in the last fiscal year, while the outdoor products and accessories business recorded sales of $159.8 million. (Reporting by Soundarya J in Bengaluru; Editing by Arun Koyyur)