Olin Closes Small Caliber Ammunition Manufacturing Assets Buyout

Core Viewpoint - Olin Corporation has completed the acquisition of AMMO, Inc's small caliber ammunition assets, which will enhance its Winchester ammunition business and is expected to generate significant synergies and increased EBITDA [1][2]. Group 1: Acquisition Details - The acquisition includes brass shell case capabilities and a newly constructed 185,000 square foot production facility in Manitowoc, WI, funded through Olin's available liquidity [2]. - The integration of the Manitowoc facility is anticipated to yield an incremental first-year adjusted EBITDA of $10 million to $15 million, with a long-term expectation of $40 million per year [2][4]. Group 2: Strategic Benefits - The new facility and its skilled workforce will complement Winchester's existing production capabilities, allowing for greater specialization in high-margin, specialty calibers [3]. - Olin plans to leverage Winchester's economies of scale, raw material sourcing, and loading capabilities to realize synergies across the ammunition value chain [4][5]. Group 3: Market Performance - Olin's stock has experienced a significant decline of 61.2% over the past year, compared to a 27.6% decline in the industry [7].