Smith & Wesson acquires Savage Arms for $160 million
SWBI•Smith & Wesson acquired Savage Arms from JDH Capital for $160 million, paid through about 9 million shares valued at $13.62 each and $37.5 million in cash. The deal is expected to add about $18 million in annual EBITDAS and $0.07 in full-year diluted EPS, rising to about $0.10 after initial synergies.
1. Acquisition terms
Smith & Wesson acquired Savage Arms from JDH Capital for $160 million, expanding its presence in hunting firearms. Consideration included approximately 9 million common shares valued at $13.62 each and $37.5 million in cash. JDH now holds 16.7% of Smith & Wesson’s outstanding common stock, making it the largest shareholder, with board representation.
2. Expected financial impact
The acquisition is expected to generate approximately $18 million in annual incremental EBITDAS, with $2.5 million in initial annual synergies anticipated. Excluding acquisition accounting, full-year fully diluted EPS accretion is expected to be $0.07, rising to approximately $0.10 following the initial synergies.
