Smith & Wesson Buys Savage Arms in $160 Million Deal

Smith & Wesson just bought Savage Arms in a $160 million stock-and-cash deal, and the combined company is now billing itself as America's top commercial firearms producer. If you shoot a Model 110 or carry an M&P, this one's worth a look.

Key points

• The deal: Smith & Wesson acquired Savage from an affiliate of JDH Capital, paying with roughly 9 million new shares plus $42.4 million in cash, per a report from SSUSA.
• What it fills: Savage brings the Model 110 bolt-action line and AccuTrigger along with its rimfire rifles and shotguns, including the Renegauge, plugging a bolt-gun gap in Smith & Wesson's catalog.
• The numbers: SSUSA reports Savage posted about $160 million in net sales over the past year, with Smith & Wesson projecting roughly $18 million in added annual earnings and minimal overlap between the two product lines.
• New ownership stake: JDH Capital is now Smith & Wesson's largest shareholder at 16.7%, with a seat on the board.
• Industry timing: SSUSA notes the deal landed a day after Beretta finalized its tender offer for Sturm, Ruger & Co., making it a busy week for gunmaker consolidation.

Quick take

For owners, the immediate question is whether Savage's identity survives under a new corporate roof. SSUSA points out that Smith & Wesson hasn't detailed any changes to Savage's Massachusetts headquarters or Ontario plant, so for now the Model 110 keeps rolling as before. The real test comes once integration details surface and buyers see whether pricing, availability or quality shift on either brand's lineup.

Read the full story: ssusa.org