Smith & Wesson completes $160 million acquisition of Savage Arms
Smith & Wesson Brands announced it has acquired Savage Arms for a total consideration of $160 million in cash and stock, closing on October 21 2026. The deal adds Savage’s $160 million of annual net sales and roughly 500 employees, making the combined company the largest U.S. commercial firearms manufacturer. JDH Capital, the seller, will own about 16.7% of Smith & Wesson’s common stock and receive a seat on the board. The transaction is expected to be immediately accretive to fully‑diluted earnings per share by $0.04 for the remainder of fiscal 2027 and $0.07 for the full year.
Why it matters
The company says the acquisition will boost earnings per share and broaden its hunting‑category product line, which could improve profitability and market share. JDH Capital’s new 16.7% stake aligns a former owner with Smith & Wesson shareholders, potentially influencing future governance.
Key facts
- 1The acquisition closed on October 21 2026. stocktitan.net
- 2The purchase price was $160.0 million, consisting of cash and Smith & Wesson common stock. stocktitan.net
- 3JDH Capital will own 16.7% of Smith & Wesson’s outstanding common stock after the transaction. stocktitan.net
- 4Savage generated approximately $160 million of net sales for the twelve‑month period ending September 30 2026. stocktitan.net
- 5The deal is expected to be immediately accretive to fully‑diluted EPS by $0.04 for the remainder of fiscal 2027 and $0.07 for the full year, excluding acquisition accounting. stocktitan.net
- 6Combined annual revenue of the two companies will be about $711 million and they will ship roughly 1.6 million firearms per year. finance.yahoo.com
Open questions
- Material 1 states cash component of $37.5 million and 9 million shares at $13.62 per share, while Material 2 reports cash of $42.4 million and 8.99 million shares (19.99% pre‑merger).
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.