Smith & Wesson Buys Savage Arms for $160M in Cash and Stock
SWBI sits 80% above its 52-week low of $8.135.
Summary
Smith & Wesson closed its acquisition of Savage Arms from JDH Capital on October 21 for $160.0 million, paid with roughly 9 million SWBI shares valued at $13.62 each plus $37.5 million in cash. Savage brings about $160 million in trailing twelve-month net sales and is expected to add roughly $18 million of EBITDAS on a full-year basis, with more upside as synergies come through. Management guides the deal to be immediately accretive: about $0.04 per share for the rest of fiscal 2027, $0.07 on a full-year basis, and $0.10 once initial synergies are realized, all excluding acquisition accounting. The price works out to about 7.9x Savage's adjusted EBITDA after $2.5 million of run-rate synergies, and pro forma net leverage stays modest at 1.16x. JDH now owns 16.7% of Smith & Wesson and has taken a board seat, expanding the board to seven directors. This is a meaningful strategic shift for a company with a roughly $660 million market cap, adding hunting and bolt-action rifle exposure to its handgun-heavy lineup and handing a large outside holder board influence.
At the time of this announcement, SWBI was trading at $14.65 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $662.7M. The 52-week trading range was $8.14 to $17.56. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: TMX Newsfile.