Olin Acquires Ammo Inc.'s Small Caliber Assets

By Bobby Samwell • Saturday, April 19 15:14 • Permanent Link

Olin Corporation (NYSE: OLN) has recently completed the acquisition of the small caliber ammunition assets of Ammo, Inc. as part of its Winchester Ammunition business. This acquisition includes the brass shellcase capabilities and a newly constructed, 185,000 square foot production facility in Manitowoc, Wisconsin.

Funded from available liquidity, the acquisition is expected to be immediately accretive to Olin’s shareholders, with incremental expected first-year adjusted EBITDA of $10 to $15 million, including synergies realization. Once fully integrated, the acquisition is anticipated to yield adjusted EBITDA of $40 million per year with full realization of synergies.

Olin had committed to its capital allocation framework during its recent investor day and views this acquisition as furthering its Winchester strategy to identify and secure small, bolt-on opportunities that are highly strategic and immediately accretive to Olin. By year three, it expects to have paid one and a half times adjusted EBITDA for these assets.

Brett Flaugher, President of Winchester Ammunition, highlighted that the specialization of the Manitowoc facility will expand their reach into higher-value commercial, international military, and law enforcement calibers, while deepening their integration across the ammunition value chain. This strategic shift enables their larger, legacy plants to focus on high-volume products and growing their cost advantage.

Olin Corporation is a leading vertically integrated global manufacturer and distributor of chemical products, including chlorine, caustic soda, vinyls, epoxies, chlorinated organics, bleach, hydrogen, and hydrochloric acid. Winchester’s principal manufacturing facilities produce and distribute sporting ammunition, law enforcement ammunition, reloading components, small caliber military ammunition and components, industrial cartridges, and clay targets. As a result of these announcements, the company's shares have moved 2.6% on the market, and are now trading at a price of $20.89. If you want to know more, read the company's complete 8-K report here.

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