Olin, a manufacturing company based in Clayton, Missouri, has completed the acquisition of small-caliber ammunition supplier Ammo Inc. Olin said in a press release posted Friday that its Winchester Ammunition business will absorb Ammo’s employees and assets, including a newly constructed 185,000 square foot production facility located in Manitowoc, Wisconsin.
Impact of Olin’s Purchase of Ammo Inc
The transaction is expected to give Olin first-year adjusted EBITDA of $10 million to $15 million. Once fully integrated, the acquisition of Ammo is estimated to yield adjusted EBITDA of $40 million per year.
“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,” commented Ken Lane, president and CEO of Olin. “By year three, we expect to have paid one and a half times adjusted EBITDA for these world-class assets.”
White Flyer was a manufacturer of recreational trap, skeet and sporting clay targets with facilities in Pennsylvania, Georgia, California, Indiana and Missouri. The company was absorbed into Olin’s Winchester Ammunition business in 2023.
Brett Flaugher, president of Winchester Ammunition, added that Ammo’s production facility in Wisconsin 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,” said Flaugher.
Olin manufactures and distributes chemical products such as chlorine and caustic soda, vinyls, epoxies, bleach, and hydrogen. The company also produces ammunition and reloading components for sporting, law enforcement and military customers.