Monitor integration progress and synergy realization over the next 2-4 quarters. The 360-day lockup on JDH's shares (releasing in three equal tranches at 90, 240, and 360 days) will be a key overhang to watch. The post-closing adjustment and any updates to guidance in upcoming earnings calls will provide further clarity on accretion.
Price Chart
Executive Summary
Smith & Wesson Brands, Inc. (SWBI) completed the acquisition of Savage Arms on October 21, 2026, for a total consideration of approximately $164.9 million, consisting of 8,993,968 shares of SWBI common stock (valued at $13.62/share, representing 19.99% of pre-transaction shares outstanding) and $42.4 million in cash. The transaction is expected to be immediately accretive to EPS by ~$0.04 for the remainder of fiscal 2027 and ~$0.07 on a full-year basis, with additional accretion of ~$0.10 after synergies. JDH Capital (the seller) becomes SWBI's largest stockholder at 16.7% ownership and gains board representation.
Key Financial Metrics
Key Facts
- Acquisition of Savage Arms closed on October 21, 2026 for ~$164.9M total consideration (8,993,968 shares + $42.4M cash)
- Savage generated ~$160M net sales for the twelve months ended September 30, 2026
- Transaction expected to deliver ~$18M incremental EBITDAS on a full-year basis
- Expected to be immediately accretive to fully diluted EPS by ~$0.04 for remainder of fiscal 2027, ~$0.07 full-year, and ~$0.10 after synergies
- Purchase price represents ~7.9x Savage's Adjusted EBITDA after expected initial annual run-rate synergies of $2.5M
- JDH Capital becomes SWBI's largest stockholder at 16.7% ownership and appoints Michael Fertitta to the board
- Pro forma net leverage ratio of 1.16x post-closing
Financial Impact
Total consideration ~$164.9M (8,993,968 shares at $13.62/share + $42.4M cash). Savage TTM net sales ~$160M. Expected ~$18M incremental EBITDAS. Accretion of $0.04-$0.10 per share.
Risk Factors
- Integration risk: combining two distinct manufacturing operations and cultures may prove challenging
- Dilution: issuance of 8,993,968 shares (19.99% of pre-transaction shares) will dilute existing stockholders
- Execution risk: synergy targets of $2.5M initial run-rate may not be achieved
- Regulatory risk: firearms industry subject to potential regulatory changes and social activism
- Lockup expiration: JDH's ability to sell shares after lockup periods could pressure stock price
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-427316 |
| Document: d166089dex101.htm | 0001193125-26-427316 |
| Document: d166089d8k.htm | 0001193125-26-427316 |
| Document: d166089dex991.htm | 0001193125-26-427316 |
| Document: d166089dex992.htm | 0001193125-26-427316 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 4d ago | 3 | $13.71 $13.84 | ▲ +0.95% | ▲ +0.24% | $13.84 (+0.95%) |
Oct 21, 2026 5d ago | 8-K | $15.10 $14.35 | ▼ −4.97% | ▼ −3.79% | $13.84 (−8.34%) |
Sep 8, 2026 7w ago | Court Ruling | $13.27 $13.16 | ▲ +0.82% | ▲ +0.22% | $13.84 (−4.32%) |
Jul 15, 2026 14w ago | 8-K | $14.93 $15.25 | ▲ +2.14% | ▲ +2.69% | $13.84 (−7.30%) |
Jun 17, 2026 18w ago | 8-K | $16.08 $16.45 | ▲ +2.30% | ▲ +2.62% | $13.84 (−13.93%) |
Mar 5, 2026 33w ago | 8-K | $13.86 $14.11 | ▲ +1.79% | ▲ +0.94% | $13.84 (−0.14%) |
US Market Status
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