Smith & Wesson Brands, Inc. (NASDAQ: SWBI), a U.S.-based firearm manufacturer and designer, announced on October 21, 2026 that it has acquired the Savage Arms business by merger from an indirect subsidiary of JDH Capital I, L.P. Savage has produced firearms for more than 130 years and is one of the world’s largest manufacturers of hunting, competition and target shooting centerfire and rimfire rifles and shotguns.

Deal Terms and Consideration

The transaction values Savage at $160.0 million, subject to customary adjustments, and was completed on October 21, 2026. The purchase price represents approximately 7.9x Savage’s Adjusted EBITDA for the twelve months ended September 30, 2026, after giving effect to expected initial annual run rate synergies of $2.5 million.

Smith & Wesson paid with a combination of equity and cash: approximately 9 million shares of common stock, valued at $13.62 per share based on a 45-trading-day volume weighted average price, plus $37.5 million in cash. Following the closing, JDH owns 16.7% of Smith & Wesson’s outstanding common stock. Under an investor rights agreement, Smith & Wesson filled an existing board vacancy with a JDH representative, bringing the board to seven directors.

“Smith & Wesson is a natural partner for Savage given the complementary strengths of the two companies and their shared commitment to quality, innovation and serving the firearms community,” said Michael Fertitta, Managing Director of JDH, adding that JDH looks forward to participating in the combined business “as a significant Smith & Wesson stockholder.”

Adding Bolt-Action and Hunting Rifles to a Handgun-Led Lineup

According to the company, Savage’s strength in hunting and bolt-action rifles is complementary to Smith & Wesson’s position in handguns and its growing presence in other long gun categories. In its fiscal 2026 fourth quarter, Smith & Wesson said handgun shipments represented over 80% of units shipped, and new products made up 37.5% of total revenue.

“The acquisition of Savage is a transformative step for Smith & Wesson and an important milestone in our strategy to be the undisputed market leader in the firearm industry,” said Mark Smith, President and Chief Executive Officer of Smith & Wesson. “Savage’s brand heritage, culture, and longstanding reputation for performance and innovation align closely with our own, and the business meaningfully expands our presence in the hunting category.”

Savage is headquartered in Westfield, Massachusetts. Smith & Wesson, based in Maryville, Tennessee, sells handguns, long guns and suppressors under the Smith & Wesson and Gemtech brands, provides forging and machining services to third parties and runs training programs at the Smith & Wesson Academy.

Expected Financial Impact and Recent Results

Savage generated approximately $160 million of net sales for the twelve months ended September 30, 2026. Smith & Wesson expects the deal to deliver approximately $18 million of incremental EBITDAS on a full-year basis, with additional upside after synergy realization. Excluding acquisition-related accounting and transaction costs, the company expects accretion to fully diluted earnings per share of approximately $0.04 for the remainder of fiscal 2027 and $0.07 for a full year, rising to approximately $0.10 per share after initial synergies. Pro forma net leverage is estimated at 1.16.

For comparison, Smith & Wesson reported fiscal 2026 net sales of $523.8 million, up 10.4% from the prior year, with Adjusted EBITDAS of $69.2 million. In its first quarter of fiscal 2027, ended July 31, 2026, net sales rose 32.3% to $112.6 million, and GAAP net income was $2.6 million, or $0.06 per diluted share, compared with a net loss of $3.4 million a year earlier. Gross margin of 28.7% included $2.9 million in non-recurring tariff refunds.

At that time, the company said it expected second quarter sales roughly 10% above the prior year and fiscal 2027 revenue growth of approximately 5% to 7%. Those expectations were issued before the Savage acquisition. The board also authorized a $0.13 per share quarterly dividend, payable on October 1, 2026.

Strategic Investment Summary

• Acquisition Completed: Smith & Wesson Brands, Inc. (NASDAQ: SWBI) completed its acquisition of Savage Arms on October 21, 2026, in a transaction valuing Savage at $160.0 million.
• Consideration: The price consists of approximately 9 million Smith & Wesson shares valued at $13.62 each plus $37.5 million in cash, about 7.9x Savage’s Adjusted EBITDA including expected synergies.
• Product Mix: Savage adds hunting, competition and target rifles and shotguns to a lineup in which handguns represented over 80% of units shipped in the fiscal 2026 fourth quarter.
• Earnings Impact: The company expects about $18 million of incremental EBITDAS and full-year EPS accretion of $0.07, rising to approximately $0.10 after initial synergies, excluding acquisition accounting.
• Ownership and Board: JDH owns 16.7% of Smith & Wesson’s outstanding common stock and has a representative on the seven-member board.
• Recent Results: First quarter fiscal 2027 net sales rose 32.3% to $112.6 million, with GAAP EPS of $0.06 and pro forma net leverage after the deal estimated at 1.16.

Find out more about the latest corporate developments and financial reports at the Smith & Wesson investor portal.

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