Smith & Wesson buys Savage Arms for $160M in rifle push
What's the deal? Smith & WessonDealroom has a profile for this one. Try Dealroom → has acquired Savage ArmsDealroom has a profile for this one. Try Dealroom → in a $160 million merger, closing the transaction on October 21, 2026. It bought the business from an indirect subsidiary of JDH Capital I, L.P.Dealroom has a profile for this one. Try Dealroom →
What each side brings: Savage has made firearms for more than 130 years and ranks among the world's largest makers of hunting, competition, and target rifles and shotguns. Smith & Wesson leads in handguns; Savage adds strength in hunting and bolt-action rifles.
Why now? Chief executive officer Mark Smith called the deal "a transformative step" and "an important milestone in our strategy to be the undisputed market leader in the firearm industry." It meaningfully expands the company's presence in the hunting category.
The terms: The $160 million price values Savage at roughly 7.9 times its adjusted EBITDA for the 12 months ending September 30, 2026, after expected synergies. JDH Capital becomes Smith & Wesson's largest stockholder and gains board representation.
By the numbers: Savage generated about $160 million in net sales over the same period. Smith & Wesson expects the deal to add roughly $18 million of incremental EBITDAS on a full-year basis and to be immediately accretive to earnings per share. It keeps a 1.16 net leverage ratio on a pro forma basis.
The wider picture: Smith & Wesson reported fiscal 2026 sales up 10.4% to $523.8 million, with its June outlook calling for firearm demand to stay healthy and slightly higher in fiscal 2027. The Savage deal marks an expansion from its core handgun business into rifles.
The signal: The merger consolidates two long-standing American firearm brands under one roof. By pairing handgun leadership with Savage's rifle heritage, Smith & Wesson is building a broader platform across shooting disciplines in a market it expects to keep growing.
Read more: marketscreener.com
Image credit: huntingmark
