{"id":35008,"date":"2025-01-21T21:03:27","date_gmt":"2025-01-21T21:03:27","guid":{"rendered":"https:\/\/onlygunsandmoney.com\/?p=35008"},"modified":"2025-01-21T21:03:28","modified_gmt":"2025-01-21T21:03:28","slug":"olin-buys-ammo-inc-s-ammunition-manufacturing-assets","status":"publish","type":"post","link":"https:\/\/onlygunsandmoney.com\/?p=35008","title":{"rendered":"Olin Buys AMMO, Inc.&#8217;s Ammunition Manufacturing Assets"},"content":{"rendered":"<div class='__iawmlf-post-loop-links' style='display:none;' data-iawmlf-post-links='[{&quot;id&quot;:845,&quot;href&quot;:&quot;https:\\\/\\\/olin.com\\\/investors\\\/events-presentations\\\/press-releases\\\/#b2iLibScrollTo&quot;,&quot;archived_href&quot;:&quot;&quot;,&quot;redirect_href&quot;:&quot;https:\\\/\\\/olin.com\\\/investors\\\/press-releases\\\/&quot;,&quot;checks&quot;:[],&quot;broken&quot;:false,&quot;last_checked&quot;:null,&quot;process&quot;:&quot;done&quot;},{&quot;id&quot;:846,&quot;href&quot;:&quot;https:\\\/\\\/www.ammoinc.com&quot;,&quot;archived_href&quot;:&quot;&quot;,&quot;redirect_href&quot;:&quot;&quot;,&quot;checks&quot;:[],&quot;broken&quot;:false,&quot;last_checked&quot;:null,&quot;process&quot;:&quot;done&quot;},{&quot;id&quot;:847,&quot;href&quot;:&quot;https:\\\/\\\/investors.ammoinc.com\\\/financials\\\/sec-filings\\\/sec-filings-details\\\/default.aspx?FilingId=18116417&quot;,&quot;archived_href&quot;:&quot;&quot;,&quot;redirect_href&quot;:&quot;&quot;,&quot;checks&quot;:[],&quot;broken&quot;:false,&quot;last_checked&quot;:null,&quot;process&quot;:&quot;done&quot;},{&quot;id&quot;:848,&quot;href&quot;:&quot;https:\\\/\\\/finance.yahoo.com\\\/quote\\\/POWW&quot;,&quot;archived_href&quot;:&quot;&quot;,&quot;redirect_href&quot;:&quot;https:\\\/\\\/finance.yahoo.com\\\/quote\\\/POWW\\\/&quot;,&quot;checks&quot;:[],&quot;broken&quot;:false,&quot;last_checked&quot;:null,&quot;process&quot;:&quot;done&quot;}]'><\/div>\n<p>Olin Corporation, the parent company of Winchester Ammunition,<strong><a href=\"https:\/\/olin.com\/investors\/events-presentations\/press-releases\/#b2iLibScrollTo\" target=\"_blank\" rel=\"noopener\"> announced today<\/a><\/strong> that they entered into an agreement with <strong><a href=\"https:\/\/www.ammoinc.com\/\" target=\"_blank\" rel=\"noopener\">AMMO, Inc.<\/a><\/strong> to purchase AMMO&#8217;s small caliber ammunition manufacturing assets. The purchase price was $75 million.<\/p>\n\n\n\n<p>From the announcement:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>The acquisition includes AMMO&#8217;s brass shellcase capabilities and their world-class, 185,000 square foot production facility located in\u00a0Manitowoc, Wisconsin, constructed in 2022. The\u00a0Manitowoc\u00a0facility and its employees will complement Winchester&#8217;s existing production capabilities, enabling greater specialization and broader participation across high-margin specialty calibers. Once fully integrated with Winchester&#8217;s industry-leading economies of scale and integration across the commercial ammunition value chain &#8211; from raw material sourcing, to projectiles, primers, and loading capabilities &#8211; the acquisition is anticipated to yield realized synergies of\u00a0$40 million.<\/p>\n<\/blockquote>\n\n\n\n<p>AMMO, Inc.&#8217;s <strong><a href=\"https:\/\/investors.ammoinc.com\/financials\/sec-filings\/sec-filings-details\/default.aspx?FilingId=18116417\" target=\"_blank\" rel=\"noopener\">8-K filing<\/a><\/strong> with the Securities and Exchange Commission notes that after the completion of the sale of their ammo business the company will continue to operate their GunBroker.com online marketplace business.<\/p>\n\n\n\n<p>The sale of the ammunition business to Olin is scheduled to be completed in the second quarter of 2025. Ken Lane, Olin&#8217;s President and CEO, said of the purchase, &#8220;We expect the\u00a0Manitowoc\u00a0assets to generate\u00a0$15 million\u00a0to\u00a0$20 million\u00a0of incremental adjusted EBITDA in the first year and, by the third year, we expect to have paid less than two times adjusted EBITDA.&#8221;<\/p>\n\n\n\n<p>It sounds to me like Olin&#8217;s Winchester Ammunition just got themselves a bargain.<\/p>\n\n\n\n<p>Insofar as AMMO, Inc. is concerned, their stock (<strong><a href=\"https:\/\/finance.yahoo.com\/quote\/POWW\/\" target=\"_blank\" rel=\"noopener\">POWW<\/a><\/strong>) closed up 12% today.<\/p>\n<div style=\"margin-top: 0px; margin-bottom: 0px;\" class=\"sharethis-inline-share-buttons\" ><\/div>","protected":false},"excerpt":{"rendered":"<p>Olin Corporation, the parent company of Winchester Ammunition, announced today that they entered into an agreement with AMMO, Inc.&hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":4,"footnotes":""},"categories":[1],"tags":[7008,6637,3541,1914],"class_list":["post-35008","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-ammo-inc","tag-ammunition-business","tag-olin","tag-winchester"],"_links":{"self":[{"href":"https:\/\/onlygunsandmoney.com\/index.php?rest_route=\/wp\/v2\/posts\/35008","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/onlygunsandmoney.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/onlygunsandmoney.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/onlygunsandmoney.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/onlygunsandmoney.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=35008"}],"version-history":[{"count":3,"href":"https:\/\/onlygunsandmoney.com\/index.php?rest_route=\/wp\/v2\/posts\/35008\/revisions"}],"predecessor-version":[{"id":35011,"href":"https:\/\/onlygunsandmoney.com\/index.php?rest_route=\/wp\/v2\/posts\/35008\/revisions\/35011"}],"wp:attachment":[{"href":"https:\/\/onlygunsandmoney.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=35008"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/onlygunsandmoney.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=35008"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/onlygunsandmoney.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=35008"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}