Olin Corporation announced on Jan. 21 it has entered into a definitive agreement with Ammo, Inc., to acquire Ammo’s small-caliber-ammunition manufacturing assets for a purchase price of $75 million. The assets will become part of Olin’s legendary Winchester Ammunition business.
The acquisition includes Ammo’s brass-shell case capabilities and its world-class, 185,000-square-foot production facility in Manitowoc, WI. Constructed in 2022, the Wisconsin site and its employees will complement Winchester’s existing production capabilities, enabling greater specialization and broader participation across high-margin specialty calibers. Once fully integrated with Winchester’s industry-leading economies of scale and integration across the commercial ammunition value chain—from raw material sourcing, to projectiles, primers and loading capabilities—the acquisition is anticipated to yield realized synergies of $40 million.
“The Manitowoc assets will extend Winchester’s leadership position and expand the reach and value of our near full integration,” said Brett Flaugher, president of Winchester Ammunition. “The acquired assets will enable our legacy plants to lower costs of existing high-volume products and increase our ability to participate in higher margin specialty rounds at a cost advantage.”
Ammo, Inc., separated its ammunition and Gunbroker.com businesses into two separate companies in 2022—Action Outdoor Sports and Outdoor Online, respectively. Brands under the former firm include Streak, Signature, Blackline, stelTH, Blueline, Ammo Brass and Hunt Ammunition.
“As highlighted during our recent Investor Day, this investment continues the Winchester acquisition strategy, which began with our White Flyer acquisition in 2023, to identify and secure small bolt-on opportunities that are highly strategic and immediately accretive to Olin,” said Ken Lane, Olin’s president and CEO. “We expect the Manitowoc assets to generate $15 million to $20 million of incremental adjusted EBITDA in the first year and, by the third year, we expect to have paid less than two times adjusted EBITDA.”
The transaction is subject to customary terms and closing conditions and is expected to close sometime during the second quarter of 2025.
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