Friedrich Peyer im Hof, Heinrich Moser and Conrad Neger were the originators of the Swiss Wagon Factory, a company that manufactured railway cars. In 1860, the three placed a bid to supply a rifle for the Swiss Federal Ministry of Defense; four years later, they won the contract with the Prelaz-Burnand rifle. With the order, they changed their name to Schweizerische Industrie-Gesellschaft (SIG). Later, they joined up with German gunmaker J.P. Sauer & Sohn to make their semi-automatic pistol, the P210, more cost effective.

Other than their military contract, Pre-WWII, Sig Sauer was known for their high-end shotguns and hunting rifles. During the war, they began production on some of the most advanced semi-automatic pistols, including the Sauer 38H.