Smith & Wesson completes $160 million Savage Arms acquisition
- Smith & Wesson Brands (NASDAQ:SWBI) reported completing its acquisition of Savage Arms on October 21, 2026, in a transaction valued at approximately $160 million, subject to customary adjustments.
- The transaction included approximately 9 million Smith & Wesson shares, valued at $13.62 each, and $37.5 million in cash, making JDH Capital the company's largest shareholder with a 16.7% stake.
- Savage generated approximately $160 million in trailing annual sales, while Smith & Wesson forecasts $18 million in incremental annual EBITDAS and approximately $0.04 in diluted EPS accretion for the remainder of fiscal 2027.
Smith & Wesson Brands (NASDAQ:SWBI) reported completing its $160 million acquisition of Savage Arms on October 21, 2026, expanding its firearms manufacturing portfolio.
The merger consideration comprised approximately nine million Smith & Wesson common shares valued at $13.62 each and $37.5 million in cash, subject to customary adjustments.
JDH Capital, which indirectly owned Savage Arms, received a 16.7% ownership stake in Smith & Wesson and gained representation on its seven-member board.
Savage Arms generated approximately $160 million in net sales during the twelve months ended September 30, 2026, establishing a sizable additional revenue base.
Smith & Wesson expects the acquired business to contribute approximately $18 million in incremental annual EBITDAS, excluding potential acquisition-related adjustments and integration effects.
The company projects approximately $0.04 in diluted earnings-per-share accretion during the remainder of fiscal 2027, excluding transaction costs and acquisition accounting impacts.
Following the transaction, Smith & Wesson estimated pro forma net leverage at 1.16 times, reflecting the combined business's anticipated financial position after closing.
