The assets, employees and ammunition business are now part of Olin’s Winchester Ammunition business,
Olin Corporation declared that it has finished the earlier declared acquisition of the small caliber ammunition assets of AMMO, Inc.
The assets, employees and ammunition business are actually a part of Olin’s Winchester Ammunition business, which include the brass shellcase capabilities and a newly constructed, world-class, 185,000 square foot manufacturing facility located in Manitowoc, Wisconsin. The facility and its skilled employees supplement Winchester’s existing production capabilities, permitting great specialization and broader participation across a variety of high-margin, specialty calibers.
Funded from available liquidity, this transaction is anticipated to be immediately accretive to Olin’s shareholders, delivering incremental anticipated first-year adjusted EBITDA of $10 to $15 million, inclusive of synergies realization, leveraging Winchester’s industry-leading economies of scale, raw material sourcing, and our projectile, primer, and loading capabilities. Once absolutely incorporated, this acquisition is predicted to yield adjusted EBITDA of $40 million per year with full realization of synergies.
“During our current Investor Day, we dedicated to our capital allocation framework,” stated Olin’s President and CEO, Ken Lane. “Like the White Flyer acquisition in 2023, this acquisition furthers our Winchester strategy to identify and secure small, bolt-on opportunities that are highly strategic and immediately accretive to Olin. By third year, we anticipate to have paid one and a half times adjusted EBITDA for these world-class assets.”
Brett Flaugher, President of Winchester Ammunition, stated, “The specialization of the Manitowoc facility will make our reach into higher-value industrial, in addition to international military and law enforcement calibers, whilst deepening our near to full integration throughout the ammunition value chain. This shift enables our large, legacy plants to focus on high-volume products and growing our cost benefits.”
