Smith & Wesson Brands said it acquired Savage Arms in a deal valued at $160.0 million, combining one of the best-known U.S. handgun makers with a 130-year-old rifle and shotgun business.
Savage generated about $160 million in net sales over the 12 months ended Sept. 30, 2026. Smith & Wesson said the acquisition is expected to add about $18 million in incremental EBITDA on a full-year basis, before additional synergy gains.
The company said the deal should lift fully diluted earnings per share by about $0.04 for the remainder of fiscal 2027, with full-year accretion of $0.07 per share, excluding acquisition accounting. After initial synergies, that rises to about $0.10 per share.
Smith & Wesson valued the business at about 7.9 times Savage’s adjusted EBITDA, after factoring in expected initial annual run-rate synergies of $2.5 million.
The purchase price included about 9 million Smith & Wesson shares, priced at $13.62 each, and $37.5 million in cash. Following the closing, JDH Capital owns 16.7% of Smith & Wesson’s outstanding common stock and has a board seat on the now seven-member board.
Smith & Wesson said its pro forma net leverage ratio stands at 1.16 following the transaction. Following these announcements, the company's shares moved 0.0%, and are now trading at a price of $14.78. For the full picture, make sure to review SMITH & WESSON BRANDS, INC.'s 8-K report.
