Smith & Wesson Brands, Inc. announced on October 21, 2026, the completion of its acquisition of Savage Arms. The transaction, valued at $160.0 million, was executed through a merger agreement between Smith & Wesson, its subsidiary Tristar Merger Sub, LLC, and the Seller, Savarms, L.P., an indirect subsidiary of JDH Capital I, L.P.
Under the terms of the agreement, the purchase price was paid through a combination of Smith & Wesson common stock and cash. The Company issued 8,993,968 shares of common stock to the Seller, valued at a reference price of $13.62 per share. This share price was determined based on the volume-weighted average price of Smith & Wesson stock on the Nasdaq Global Select Market over the 45 trading days ending on the third day prior to the closing. Additionally, $37.5 million in cash was paid to the Seller. The total consideration, subject to a post-closing adjustment, was approximately $164.9 million.
Following the closing, JDH Capital I, L.P. owns approximately 16.7% of Smith & Wesson’s outstanding common stock. Concurrent with the merger, Smith & Wesson and the Seller entered into an Investor Rights Agreement. This agreement grants the Seller the right to designate one individual for nomination to the Company’s board of directors until the Seller’s beneficial ownership falls below 10% or two years have passed, whichever occurs first. Effective immediately following the closing, the Company appointed Michael D. Fertitta, a Managing Director of JDH Capital, to the Board of Directors. Mr. Fertitta, age 50, fills an existing vacancy, bringing the total number of directors to seven.
According to the Company’s press release, Savage Arms generated approximately $160 million in net sales for the twelve-month period ending September 30, 2026. The transaction is expected to be immediately accretive to earnings, with full-year accretion of approximately $0.07 per share anticipated. The Company projects the deal will deliver approximately $18 million of incremental EBITDAS on a full-year basis. D.A. Davidson & Co. served as the financial advisor to Smith & Wesson, while Bass, Berry & Sims PLC and Latham & Watkins acted as legal counsel.
