Smith & Wesson Completes $160 Million Acquisition of Savage Arms

Smith & Wesson Brands, Inc. has completed the acquisition of the Savage Arms business from an indirect subsidiary of JDH Capital I, L.P. for a total value of $160 million. The transaction, finalized on October 21, 2026, combines two major U.S. firearm manufacturers to create a broader product portfolio spanning handguns, hunting rifles, and shotguns.

Savage, headquartered in Westfield, Massachusetts, has produced firearms for more than 130 years and is one of the world's largest manufacturers of centerfire and rimfire rifles and shotguns for hunting, competition, and target shooting. The company generated approximately $160 million in net sales for the twelve-month period ending September 30, 2026. Smith & Wesson executives stated that the acquisition meaningfully expands the company's presence in the hunting category, leveraging Savage's strength in bolt-action rifles to complement Smith & Wesson's leadership in handguns.

The purchase price represents approximately 7.9 times Savage's Adjusted EBITDA for the twelve-month period ending September 30, 2026, after accounting for expected initial annual run rate synergies of $2.5 million. Smith & Wesson funded the deal with a mix of cash and stock, issuing roughly 9 million shares valued at $13.62 each alongside a cash payment of $37.5 million. Smith & Wesson reported that the deal should add about $0.04 to fully diluted EPS for the rest of fiscal 2027, with full-year gains projected at $0.07 per share once acquisition accounting is excluded.

Following the realization of initial synergies, the transaction is expected to deliver full-year fully diluted accretion of approximately $0.10 per share. The deal is also expected to deliver approximately $18 million in incremental EBITDAS on a full-year basis. Pro forma financial estimates indicate that Smith & Wesson will maintain a strong balance sheet with a net leverage ratio of 1.16 after the closing.

JDH Capital, a Houston-based private investment firm established in 2017, will own 16.7% of Smith & Wesson's outstanding common stock following the closing. Under an investor rights agreement, JDH appointed a representative to Smith & Wesson's board of directors, filling an existing vacancy and bringing the total number of directors to seven. Michael Fertitta, Managing Director of JDH, described Smith & Wesson as a natural partner due to their complementary strengths and shared commitment to quality.

D.A. Davidson & Co. served as financial advisor to Smith & Wesson, while Bass, Berry & Sims PLC acted as legal counsel. Latham & Watkins provided legal counsel to JDH and Savage. Mark Smith, President and Chief Executive Officer of Smith & Wesson, characterized the acquisition as a significant step toward becoming the undisputed market leader in the firearm industry.