Olin Corporation (NYSE: OLN) has successfully completed the acquisition of the small caliber ammunition assets of Ammo, Inc. This acquisition includes the brass shellcase capabilities and a newly constructed, 185,000 square foot production facility located in Manitowoc, Wisconsin. The transaction, funded from available liquidity, is expected to be immediately accretive to Olin’s shareholders, delivering incremental first-year adjusted EBITDA of $10 to $15 million, including synergies realization.
Olin's President and CEO, Ken Lane, stated that this acquisition aligns with the company's capital allocation framework and further strengthens Winchester's strategy. He highlighted that by year three, they expect to have paid one and a half times adjusted EBITDA for these assets.
Brett Flaugher, President of Winchester Ammunition, emphasized that the specialization of the Manitowoc facility will expand their reach into higher-value commercial and international military and law enforcement calibers, deepening their integration across the ammunition value chain.
The market has reacted to these announcements by moving the company's shares 2.6% to a price of $20.89. Check out the company's full 8-K submission here.
