[Discussion] Olin Winchester Acquires AMMO's Assets to Boost Manufacturing, AMMO Shifts Focus to Digital Growth

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Winchester Olin Expands with Acquisition of AMMO, Inc. Manufacturing Assets

Renowned U.S. ammunition manufacturer, Olin Winchester, has announced the significant acquisition of AMMO, Inc.'s manufacturing assets. This includes a 185,000 square foot manufacturing and ballistic testing facility located in Manitowoc, Wisconsin, contributing to an expansion of Winchester's manufacturing prowess.

This notable deal encompasses not only the physical assets of AMMO but also its employee base and ammunition manufacturing capabilities.

AMMO Concentrates on Digital Platform Enhancement

With the move, the parent company of GunBroker.com, AMMO has decided to shift its focus from manufacturing, turning towards the enhancement and scaling of its digital platform, GunBroker.com, hoping to provide an enriched user experience and subsequently generate increased value for shareholders.

“The Company intends to focus resources on scaling its digital platform, improving user experience, and unlocking additional value for shareholders,” AMMO stated in a press release.

“This sale will enable AMMO to accelerate growth as a pure-play e-commerce platform," expressed Christos Tsentas, chair of the AMMO board’s M&A Committee, showing confidence in the strategic move.

Expected Benefits for Winchester Olin

The newly acquired assets now contribute to the expansion of Olin's Winchester Ammunition business, including the addition of brass shellcase capabilities. The new world-class production facility in Manitowoc, Wisconsin, supplements Winchester's existing production capabilities, paving the way for broader specialization in a variety of high-margin specialty calibers.

Olin Winchester anticipates substantial growth from this acquisition. The company forecasts that, following full integration, it can expect to yield an adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of $40 million per annum.

Ken Lane, Olin's President and CEO, stated: "This acquisition furthers our Winchester strategy to identify and secure small, bolt-on opportunities that are highly strategic and immediately accretive to Olin." He further projected that the investment in these world-class assets would pay off within three years.

Moreover, Brett Flaugher, President of Winchester Ammunition, highlighted the expanded reach this move would afford, emphasizing how it would allow Winchester to tap into lucrative markets involving higher-value commercial, international military, and law enforcement calibers.

This strategic move greatly benefits both parties. Winchester Olin augments its manufacturing capabilities, and AMMO, Inc. sharpens its focus on growing a leader in the online firearms marketplace, GunBroker.com, showcasing a unique balance of growth and focus in the ammunition and firearms sectors.

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