Smith & Wesson Closes $160 Million Savage Arms Deal, Making JDH Its Largest Shareholder

Smith & Wesson Brands, Inc. (NASDAQ: SWBI) closed its acquisition of Savage Arms on 21 October 2026. The business was bought by merger from an indirect subsidiary of JDH Capital I, L.P., in a deal valued at $160.0 million, subject to customary adjustments.

The price is paid in Smith & Wesson common stock and cash, and it leaves JDH with the largest stake in the firearms maker. Savage had about $160 million in net sales in the twelve months ended 30 September 2026, according to the company’s announcement. The company says the deal expands its presence in the hunting category.

Stock and Cash in the Price

The consideration is about 9 million shares of Smith & Wesson common stock plus $37.5 million in cash. The shares are valued at $13.62 each, the volume-weighted average price over the 45 consecutive trading days ending on and including the third trading day before closing. Based on those figures, about $122.6 million of the value is in stock.

For readers tracking deal structures, that mix means most of the price is settled in shares rather than cash. The $160.0 million value remains subject to customary adjustments. Smith & Wesson’s share count rises by about 9 million shares as a result of the issuance.

The purchase price is about 7.9 times Savage’s Adjusted EBITDA for the twelve months ended 30 September 2026. That multiple is after giving effect to $2.5 million of expected initial annual run-rate synergies.

After closing, the company estimates pro forma net leverage at 1.16.

Deal Terms
Smith & Wesson’s release values Savage at $160.0 million, subject to customary adjustments, paid in about 9 million shares at $13.62 each plus $37.5 million in cash.

What Savage Brings and What Is Expected

Savage is headquartered in Westfield, Massachusetts, and the release cites more than 130 years of firearms production. It makes hunting, competition and target shooting centerfire and rimfire rifles and shotguns. American Hunter gives Savage’s founding year as 1894.

Smith & Wesson expects about $18 million of incremental EBITDAS on a full-year basis, with further upside once synergies are realized. Mark Smith, the company’s President and CEO, called the acquisition a “transformative step” for the company.

The release says the deal creates a broader, stronger platform with significant opportunities to better serve customers and drive long-term value for stockholders. American Hunter reports that Mark Smith said the deal significantly expands the company’s hunting category presence, particularly in bolt-action rifles.

According to American Hunter, the companies already share many of the same distributors, dealers and retail partners, and the combined company would be the largest commercial firearms manufacturer in the United States.

The company expects the deal to add about $0.04 per fully diluted share for the rest of fiscal 2027, excluding acquisition accounting and transaction costs, and about $0.07 for the full year, excluding acquisition accounting. After initial synergies, full-year accretion is expected at about $0.10 per share, also excluding acquisition accounting. These are company expectations, not reported results.

JDH Becomes the Largest Shareholder

JDH will own 16.7% of Smith & Wesson’s outstanding common stock after closing, making it the company’s largest stockholder. Under the investor rights agreement, Smith & Wesson filled an existing board vacancy with a JDH representative, bringing the board to seven directors.

JDH Capital is a private investment firm based in Houston, Texas, established in 2017, according to the release. Michael Fertitta, Managing Director of JDH, said Smith & Wesson is a natural partner for Savage because of the two companies’ complementary strengths. Fertitta said JDH looks forward to participating in the company’s continued success as a significant stockholder.

The release names the seller as an indirect subsidiary of JDH Capital I, L.P. American Hunter names the seller as JDH Holdings.

JDH will own 16.7% of Smith & Wesson’s outstanding common stock after closing, making it the company’s largest stockholder.

What Is Confirmed and What Remains Open

The acquisition is complete. The EBITDAS and accretion figures are company expectations, and the release presents them as forward-looking.

The release lists risks that could cause actual results to differ materially. They include failing to achieve expected benefits or synergies, personnel retention, integration, disruption to relationships with customers, vendors and employees, tariffs, regulation and general economic conditions.

The release also says Savage’s financials come from its own statements, without adjustment to conform to Smith & Wesson’s accounting principles, and that the differences are not believed to be material.

American Hunter reports a workforce of about 500 employees at Savage.

D.A. Davidson & Co. acted as financial advisor to Smith & Wesson, Bass, Berry & Sims PLC as its legal counsel, and Latham & Watkins as legal counsel to JDH and Savage.