Olin Corporation announced on January 21, 2025, that its Winchester Ammunition business has entered into a definitive agreement to acquire the small caliber ammunition manufacturing assets of AMMO, Inc. The purchase price for the transaction is $75 million in cash, funded through available liquidity.
The acquisition includes AMMO's brass shellcase capabilities and its 185,000 square foot production facility located in Manitowoc, Wisconsin, which was constructed in 2022. This facility and its employees are expected to complement Winchester's existing production capabilities, allowing for greater specialization and broader participation in high-margin specialty calibers.
Olin anticipates that the acquired assets will generate $15 million to $20 million of incremental adjusted EBITDA in the first year. By the third year, the acquisition is expected to yield realized synergies of $40 million, with Olin having paid less than two times adjusted EBITDA. The transaction is subject to customary closing conditions and is expected to be completed in the second calendar quarter of 2025.
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