Smith & Wesson Completes $160 Million Savage Arms Acquisition, JDH Takes 16.7% Stake

Smith & Wesson Brands acquired Savage Arms from an indirect subsidiary of JDH Capital I, L.P. for $160.0 million, the company said on October 21, 2026. The deal was completed the same day and values Savage at approximately 7.9x adjusted EBITDA. Stock Titan published the announcement.

Smith & Wesson's $160 Million Savage Arms Deal

Smith & Wesson is a U.S.-based firearm manufacturer and designer headquartered in Maryville, Tennessee, with a portfolio spanning handguns, long guns and suppressors under the Smith & Wesson and Gemtech brands. Savage Arms is headquartered in Westfield, Massachusetts, and has produced firearms for more than 130 years, ranking among the world's largest makers of hunting, competition and target shooting centerfire and rimfire rifles and shotguns.

The purchase price comprises approximately 9 million shares of Smith & Wesson common stock valued at $13.62 per share, plus $37.5 million in cash. The share valuation reflects the volume weighted average price of Smith & Wesson common stock on the Nasdaq Global Select Market for the 45 consecutive trading days ending on the third trading day immediately prior to the closing date. The transaction was completed on October 21, 2026, subject to customary adjustments.

Savage generated approximately $160 million of net sales for the twelve-month period ending September 30, 2026. The transaction is expected 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 deal is expected to be immediately accretive to Smith & Wesson's fully diluted earnings per share by approximately $0.04 for the remainder of fiscal 2027, with full-year fully diluted accretion expected of $0.07 per share. After realization of initial synergies, full-year fully diluted accretion is expected to reach approximately $0.10 per share.

Mark Smith, President and Chief Executive Officer of Smith & Wesson, said, "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."

JDH Capital's Stake and Board Seat

Following the closing, JDH Capital owns 16.7% of Smith & Wesson's outstanding common stock, according to akta.pro company records. Under an investor rights agreement, Smith & Wesson filled an existing board vacancy with a JDH representative, bringing the board to seven directors. Smith & Wesson maintains a 1.16 net leverage ratio on a pro forma estimated basis. The company reported $523.8 million in full-year FY2026 revenue, up 10.4% year over year, and a market capitalization of $636.28 million as of August 2026.

Smith & Wesson's Recent Product and Facility Moves

Smith & Wesson launched seven new product lines in 2026, including the Bodyguard 38 2.0, M&P 9 M2.0 Metal Series, M&P FPC 5.7, Model 1854 lever-action rifles, Performance Center Equalizer Carry Comp, Model 940-3, and America 250 Edition commemoratives, with new products driving 37.5% of Q4 revenue. The company relocated and relaunched the Smith & Wesson Academy at a new 30-acre Tennessee facility offering free training to law enforcement, military and consumers. In June 2026, Smith & Wesson reported Q4 FY2026 earnings with $178.4 million in revenue, up 26.7% year over year, and earnings per share of $0.36 versus $0.21 consensus.

Savage Arms Integration Underway

D.A. Davidson & Co. acted as financial advisor to Smith & Wesson, and Bass, Berry & Sims PLC served as its legal counsel. Latham & Watkins acted as legal counsel to JDH and Savage. JDH Capital is a private investment firm based in Houston, Texas, established in 2017.