Olin Corporation announced on April 18 it has completed the acquisition of the small-caliber ammunition assets of AMMO Inc., which owns GunBroker.com. The transaction was originally announced in January.
“Like the White Flyer acquisition in 2023, this acquisition furthers our Winchester strategy to identify and secure small, bolt-on opportunities that are highly strategic and immediately accretive to Olin,” said Ken Lane, president and CEO of Olin. “
The assets, employees and ammunition business are now part of Olin’s Winchester Ammunition business, including the brass shellcase capabilities and a newly constructed, world-class, 185,000-square-foot production facility located in Manitowoc, WI. The facility and its employees complement Winchester’s existing production capabilities, enabling greater specialization and broader participation across a variety of high-margin, specialty calibers.
“The specialization of the Manitowoc facility will expand our reach into higher-value commercial, as well as international military and law enforcement calibers, while deepening our near full integration across the ammunition value chain,” said Brett Flaugher, president of Winchester Ammunition. “This shift enables our larger, legacy plants to focus on high-volume products and growing our cost advantage.”
GunBroker.com becomes AMMO Inc.’s remaining core business. The company anticipates that a simplified business structure and a fortified balance sheet will fuel targeted investments, operational efficiency and disciplined capital allocation.
“This transaction marks a defining moment in AMMO’s evolution,” said Christos Tsentas, chair of AMMO Inc.’s Mergers & Acquisitions Committee. “After a thorough strategic review and collaboration with our financial and legal advisors, we are confident this sale will unlock significant value and enable AMMO to accelerate growth as a pure-play e-commerce platform. GunBroker.com is already the leader in the online firearms marketplace, and we expect this streamlined focus will allow us to double down on innovation, user engagement, and long-term profitability.”
Purchase price was $75 million. The Wisconsin plant officially opened on Sept. 22, 2022.
Read the full article here