Ammunition Powerhouse: Olin Acquires AMMO’s Wisconsin Assets
In a significant move to bolster its presence in the ammunition market, Olin, a leading U.S. manufacturer based in Clayton, Missouri, has announced a $75 million deal to acquire AMMO’s small-caliber ammunition manufacturing assets in Wisconsin. This strategic acquisition will integrate the Wisconsin-based assets into Olin’s Winchester Ammunition business, further solidifying its position in the industry.
Enhancing Production Capabilities
The acquisition includes AMMO’s brass shell case capabilities and a 185,000-square-foot production facility in Manitowoc, Wisconsin. The Manitowoc facility, along with its experienced employees, will complement Winchester’s existing production capabilities, enabling the company to optimize its operations and improve efficiency.
Unlocking Synergies and Cost Savings
Once fully integrated, the acquisition is expected to realize $40 million in synergies, leveraging Winchester’s economies of scale and value chain expertise. Brett Flaugher, president of Winchester Ammunition, believes the Wisconsin assets will enable the company to reduce costs for high-volume products and produce higher-margin specialty rounds at a competitive advantage.
Strategic Growth Plans
The transaction, subject to customary terms and conditions, is expected to close in Q2 2025. Olin’s President and CEO Ken Lane views this deal as a key component of Winchester’s acquisition strategy, which began in 2023 with the purchase of White Flyer, a manufacturer of recreational targets. The company plans to continue seeking small, bolt-on acquisition targets to drive growth and expansion.
Boosting EBITDA and Revenue
Lane expects the Manitowoc assets to generate $15 million to $20 million of incremental adjusted EBITDA in the first year, contributing significantly to the company’s revenue growth. The facility, which opened in September 2022, features a multi-lane underground range and a state-of-the-art lab with advanced test equipment.
Staying Ahead in the Industry
As Olin continues to strengthen its position in the ammunition market, this acquisition demonstrates the company’s commitment to investing in its future and driving innovation. With its enhanced production capabilities and strategic growth plans, Olin is poised to remain a leader in the industry.
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