Smith & Wesson Brands said it has acquired Savage Arms in a deal valued at $160 million, combining two long-established U.S. firearms makers and immediately expanding Smith & Wesson’s hunting business.
Savage generated about $160 million in net sales over the 12 months ended Sept. 30, 2026. Smith & Wesson said the transaction is expected to add about $18 million of incremental EBITDA on a full-year basis, with further upside after synergies are realized.
The company said the deal will be immediately accretive to fully diluted earnings per share by about $0.04 for the remainder of fiscal 2027. On a full-year basis, it expects accretion of $0.07 per share, rising to about $0.10 per share after initial synergies.
Smith & Wesson said it paid for Savage with a mix of stock and cash: about 9 million shares of its common stock, valued at $13.62 per share, plus $37.5 million in cash. The transaction implies a purchase price of about 7.9 times Savage’s adjusted EBITDA, including expected initial annual run-rate synergies of $2.5 million.
Following the closing, JDH Capital owns 16.7% of Smith & Wesson’s outstanding common stock. JDH also received a board seat, bringing the Smith & Wesson board to seven directors.
Smith & Wesson said the combined company is carrying a pro forma net leverage ratio of 1.16. As a result of these announcements, the company's shares have moved 0.0% on the market, and are now trading at a price of $14.78. If you want to know more, read the company's complete 8-K report here.
