Smith & Wesson Completes Savage Arms Deal at $164.9 Million Adjusted Value

Smith & Wesson Brands completed its acquisition of Savage Arms on Oct. 21, issuing 8,993,968 common shares and paying $42.4 million in cash. The acquisition adds Savage’s hunting, competition and target-shooting rifles and shotguns to Smith & Wesson’s handgun business and growing long-gun lineup.

The adjusted transaction value is approximately $164.9 million, combining a $160 million base amount with preliminary closing calculations for Savage’s cash and debt, deal expenses, minimum cash needs and net working capital. A post-closing cash adjustment remains pending.

Smith & Wesson valued the shares at $13.62 each, using a volume-weighted average price over 45 trading days through the third trading day before closing. The shares represented 19.99% of Smith & Wesson’s shares outstanding immediately before the first merger.

Savage recorded about $160 million in net sales in the 12 months ended Sept. 30, 2026. Smith & Wesson projected approximately $18 million in incremental EBITDAS on a full-year basis and about $2.5 million in initial annual run-rate synergies. It forecast full-year diluted earnings accretion of $0.07 per share before those synergies and approximately $0.10 after them, excluding acquisition accounting.

JDH Capital I, L.P. sold Savage through an indirect subsidiary and held 16.7% of Smith & Wesson after the deal. Michael D. Fertitta, a JDH managing director and the company’s designee, joined the board, which then had seven directors.

Smith & Wesson President and CEO Mark Smith called the acquisition “a transformative step for Smith & Wesson and an important milestone” in the company’s strategy. Fertitta described Smith & Wesson as “a natural partner for Savage,” citing the companies’ complementary strengths and shared commitment to the firearms community.

Smith & Wesson is to file Savage’s financial statements and pro forma information in a later amendment no later than 71 days after the initial report’s due date.