AMMO, Inc. Manufacturing Assets Acquired by Olin Winchester

Olin Winchester has completed the acquisition of AMMO's manufacturing facility in Manitowoc, Wisconsin, a 185,000 square foot complex that includes ballistic testing capabilities. The transaction encompasses all manufacturing assets, the existing workforce, and AMMO's ammunition production operations.

This strategic move allows AMMO, Inc., which owns GunBroker.com, to pivot away from manufacturing and concentrate exclusively on its e-commerce platform. According to the company's announcement, "The Company intends to focus resources on scaling its digital platform, improving user experience, and unlocking additional value for shareholders."

Christos Tsentas, Chair of AMMO's M&A Committee, described the significance of this development: "This transaction marks a defining moment in AMMO's evolution. 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."

From Olin's perspective, the acquisition integrates seamlessly with their existing Winchester Ammunition business. Their statement emphasized that the transaction includes "the brass shellcase capabilities and a newly constructed, world-class, 185,000 square foot production facility located in Manitowoc, Wisconsin. The facility and its skilled employees complement Winchester's existing production capabilities, enabling greater specialization and broader participation across a variety of high-margin, specialty calibers."

Financial projections from Olin indicate that the fully integrated acquisition is expected to generate annual adjusted EBITDA of $40 million once synergies are completely realized.

Ken Lane, Olin's President and CEO, connected this move to the company's broader strategy: "During our recent Investor Day, we committed to our capital allocation framework. 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. By year three, we expect to have paid one and a half times adjusted EBITDA for these world-class assets."

Winchester Ammunition President Brett Flaugher highlighted the operational advantages: "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. This shift enables our larger, legacy plants to focus on high-volume products and growing our cost advantage."